Few local businesses open books to U.S. immigration officials over hiring practices

July 16, 2011

Pat Maio

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Businesses have been slow to warm up to a little-known program run by the federal immigration agency ---- nicknamed ICE ---- because of fears that opening up books on who they've hired could get them into hot water.

The program has certified seven companies in San Diego County since its inception in 2006, and just more than 120 nationwide, according to figures provided by the U.S. Immigration and Customs Enforcementagency.

Some of the participants locally say that patriotism moved them to adopt the program.

"I believe in hiring American, and buying American," said Jim Betz, owner of Betz Concrete Inc. in Escondido, and one of those who signed up. "You need to be patriotic and diligent and do what is best for the country."

It's a theme heard from others as well.

Betz also is involved in a second federal government program, called E-Verify. This Internet-based program checks on the immigration status of potential employees before they can be hired. E-Verify matches up an employee's Social Security number and other information against federal databases.

Betz and other participants in the ICE program ----- which is different from E-Verify ---- maintain that it has helped them stay legal in their hiring practices and avoid employment land mines that could land them in court on discrimination charges or result in thousands of dollars in fines for hiring illegal immigrants. A pattern of abuse could lead to other civil or criminal charges.

The ICE program has a mouthful of a name, called the ICE Mutual Agreement between Government and Employers, or IMAGE, and is strictly a voluntary program run by the Department of Homeland Security. It is designed to get employers to hire workers who are eligible to legally work in the United States, and has an educational theme to its mission.

Slow start

The seven employers in San Diego County who are IMAGE-certified all have received a sticker or poster with the IMAGE logo ---- which hangs either on the wall of a lobby or is posted on the front door.

"I've seen cases where people walk up to my front door and then walk away. You can only assume that the IMAGE sticker scared them away," said Michael Henderson, president of Unicel Corp. in Escondido.

Besides Betz Concrete and Unicel, which makes doors for military ships and light rail cars in major cities around the U.S., IMAGE participants in San Diego County are Body Beautiful Car Wash Inc., based in Mission Valley but with locations in Poway, El Cajon and downtown San Diego; and San Marcos-based Fluid Components International LLC, which makes sensors and meters that measure the flow of fluids for aerospace applications, in petroleum plants and in the nuclear industry.

Other participants in IMAGE are A-1 Fire Protection Inc., Pacific Rim Mechanical and San Diego Flight Training International ---- all based in the city of San Diego.

"We want to make sure we act in accordance with the law, and use the tools available to us. Personally, I like building a relationship with ICE," said Pat Lafser, a human resources director for Fluid Components.

Local company officials involved with IMAGE said that ICE officials have essentially helped them fill out federal I-9 documents. These I-9 documents are used by employers to verify a new employee's identity and to establish that the worker is eligible to accept employment in the U.S.

The I-9 forms were first required by the Immigration Reform and Control Act in 1986, and were permitted to be filed electronically in 2004.

Michael Carney, the deputy special agent in charge for ICE Homeland Security Investigations in San Diego, acknowledges that the IMAGE program has gotten off to a slow start in recent years. But the program is the focus of an overhaul to help make employers feel at ease with filling out the paperwork to get certified.

Fear of government

Carney said fear of retribution by a government agency ---- in particular, his ---- is part of the reason for the slow adoption of IMAGE.

"You really are opening up your hiring process and asking a government entity to review your labor hiring and bring you up to proficiency and compliance with hiring processes," Carney said. "There may be a little bit of fear to doing that."

But, added Carney, "The immigration issue is a hot button. Either you are for or against immigration enforcement. It takes a company committed to do the right thing to enroll in the process."

Carney said the ICE program has been targeting for outreach certain industry sectors to become "role models" through voluntary compliance and become part of the self-policing of their own industry.

At the heart of these outreach efforts is Carney's right-hand man, Michael Murakami, a special agent in charge of ICE in San Diego. Murakami's name is known to everyone who has become IMAGE-certified.

He has done a great deal of legwork to meet with chambers of commerce throughout North County, Poway and groups representing general builders and wall and ceiling contractors.

"They look at it as a good thing, but it takes a leap of faith or conviction to go ahead and commit to the IMAGE program," Murakami said.

Some of the employers interviewed said they're seeing fewer illegal immigrants applying for jobs in San Diego County. But this could reflect a drop-off in the number of apprehensions of people sneaking in along the 60-mile border between San Diego County and Mexico, and along the coastline.

Illegal crossings on the wane

From the fiscal year ended Sept. 1, 2006, through June, the number has fallen significantly ---- possibly because of fewer jobs locally and anecdotal evidence that some parts of the Mexican economy are perking up.

"I've heard that theory," Carney said. "We don't have the numbers to back that up. I've heard that. It makes sense and is logical."

Apprehensions by the U.S. Border Patrol of illegal immigrants attempting to enter San Diego County totaled 142,104 in 2006; 152,460 in 2007; 162,390 in 2008; 118,721 in 2009; 68,565 in 2010; and, 33,832 from Oct. 1 to June 30, according to data provided by U.S. Border Patrol Agent Scott Simon.

"We're doing a better job of policing the border," Simon said.

Yogi Mody, president of Body Beautiful, has been hit with enforcement actions in previous years for hiring illegal immigrants at his car wash chain. Some problems were found with I-9 forms filled out incorrectly, said Mody, who employs 130 to 150 workers at his four car wash locations.

"I like ICE because it shifts the burden from the managers to the database. We never have to worry about this again," said Mody, 65, who came from India to America as a young adult to study engineering and business.

Mody's company is the first to become certified in the car wash industry in the U.S., according to officials with the Western Car Wash Association in Folsom, and the International Car Wash Association in Chicago. "Hopefully we'll see other car wash companies follow," Carney said.

A possible first

"This is the first I've heard of it," said Ross Hutchings, executive director of the Western car wash group, when contacted about Mody's certification.

"This is something we'd like to share with other car wash owners," said Hutchings, who represents 900 members in 12 Western states. "The fear of opening up the books to the government is a reality. Our members are entrepreneurs and they don't want government to be involved in their business."

Eric Wulf, executive director for the international car wash group, said the industry has experienced a few tough years in the limp economy.

The industry is said to have seen a falloff in car washes overall in the 30-35 percent range among the 80,000 retail locations in North America. "It's discretionary income," Wulf said.

"Car washes don't attract (illegal immigrants). But the nature of seasonal and part-time labor, and lower wages, it's all a factor that our industry faces," Wulf said.

"These are very tough economic times," said Mody, who lowered his price for a basic car wash to $9.99 from $13.49 in January, but raised it recently by a dollar.

"There was a lot of debate within our company as to whether we should (adopt IMAGE)," said Mody, who pointed out that some managers feared that they might lose some workers. "If you are playing by the rules, it's unnecessary. There's no trouble getting labor in this economy."


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