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Immigration Update: Businesses, Others React to Arizona Law

By Jason Marczak

The signing of SB 1070 in Arizona threatens the ability of all Latinos to integrate into the state’s workforce and communities and is likely to stifle Latino entrepreneurship and socioeconomic mobility.

The signing of SB 1070 in Arizona threatens the ability of all Latinos (30.1 percent of the Arizona population) to integrate into the state’s workforce and communities and is likely to stifle Latino entrepreneurship and socioeconomic mobility. AS/COA works nationally and in new gateway cities to promote Latino integration, and asked select participants in our Hispanic Integration project across the country to share their views on the economic effects of the law from the perspective of business. Read their statements below.

As background, SB 1070 mandates law enforcement to determine the immigration status of a person “where reasonable suspicion exists that the person is an alien who is unlawfully present in the United States.” This provision is likely to lead to racial profiling despite an executive order that requires additional police training on how to implement the law without engaging in racial profiling or discrimination. The bill also makes it illegal to transport somebody who may be unauthorized to be in the U.S. and it builds on previous Arizona law in punishing employers who may unknowingly have undocumented workers.

Visit our Hispanic Integration Hub and learn more about AS/COA’s Hispanic integration work.

Statements

  • Portland, Oregon: Cityhouse Builders LLC; Hispanic Metropolitan Chamber; J. Frank Schmidt & Son Co.; Portland Public Schools
  • New Orleans, Louisiana: ASI Federal Credit Union; Ceballos Legal Consulting, L.L.C.; Hispanic Chamber of Commerce of Louisiana
  • Atlanta, Georgia: City of Atlanta, Office of the Mayor; Metro Atlanta Chamber
  • Nashville, Tennessee: Nashville Area Hispanic Chamber of Commerce; Millennium Marketing, LLC
  • Omaha, Nebraska: Connoisseur Media

Portland, Oregon: Cityhouse Builders LLC
Arizona’s law is a setback for civil rights and it makes for poor economic policy. At a time when businesses need be focused on their customers and employees this mean-spirited law is a distraction. The legislature and Governor should be trying to put people back to work—not risking boycotts.
–Serena Cruz Walsh, Co-Founder, Cityhouse Builders LLC

Portland, Oregon: Hispanic Metropolitan Chamber
This law hampers economic vitality in Arizona. It will discourage people from coming to Arizona as visitors. Many potential visitors will refuse to spend their highly sought after dollars in a state that openly encourages racial profiling and racial discrimination against Latinos (and others that may be mistaken as Latinos).

The law will jeopardize businesses in every sector that depend on quality workers. Educated, highly skilled workers have a choice where they will live. Many will not move to or stay in a state that discriminates against them and/or members of their families. Businesses will not move to or stay in a state where their workers are not treated fairly as their drive their cars or walk down the street.

Overall, this law could result in billions of dollars of lost tax revenues for the state and billions of dollars of lost revenues for local businesses. This law is bad for Arizona businesses.
- Gale Castillo, President, Hispanic Metropolitan Chamber

Portland, Oregon: J. Frank Schmidt & Son Co.
The recent Arizona legislation fails to take into account the positive economic impact that these individuals are making to the local economy as well as the interconnection of the Hispanic community. How are local law enforcement authorities going to make a determination as to who to investigate, or who to stop in traffic, other then profiling? There is no other way for them to perform their duty unless that individual has committed an obvious crime or broken a law within their view. And how are they going to determine who is legal or illegal in the non-Hispanic population, or are these individuals excluded form this new legislation?

What this will do to the local community is to drive families, both legal and illegal out of the local communities and out of the state, leaving behind a wake of closed businesses and a devastated local economy.
-Gary S. Furr, Chief Operations Officer, J. Frank Schmidt & Son Co.

Portland, Oregon: Portland Public Schools
Castañeda v. Pickard is the seminal case in education law that establishes that school districts cannot look at students' legal status as a condition for providing educational services. I worry how the Arizona law will conflict with educators in that state's ability to meet the needs of their children. School districts struggle every day to help children from all walks of life come together, appreciate the value of their differences and together forge a stronger pluralistic nation. The Arizona actions are so much in direct conflict with this mission that I shudder for my colleagues in that state.

As an employer looking to hire a more diverse workforce—one that more closely resembles the students we serve—I believe that implementing the Arizona law would force me into the contradictory position of attempting to recruit bilingual and bicultural staff while treating them differently in what I require from them to demonstrate compliance with the law. As a bilingual, bicultural professional, born outside the United States, but proud of my American citizenship, I would never apply for a position in Arizona.
-Xavier Botana, Chief Academic Officer, Portland Public Schools

New Orleans, Louisiana: ASI Federal Credit Union
ASI Federal Credit Union was founded on the principles of financial justice and economic inclusion for all people, regardless of race, color, creed, gender or nationality. We are strongly opposed to legislation which may lead to racial profiling impeding minorities’ access to financial integration. It is our goal to help foster economic empowerment within these needy groups. Laws constraining citizenry to the lowest rungs of the socioeconomic ladder are not compatible with our mission of economic inclusion.
–Will Bienvenu, Vice President, ASI Federal Credit Union

New Orleans, Louisiana: Ceballos Legal Consulting, L.L.C.
This bill is the result of desperation. Desperation from states resulting from years of lack of enforcement from the federal government and inadequate immigration laws that leave them with the financial burden of dealing with this issue.

However, the solution to this problem should not be to create laws based on emotion, but laws that will truly have a long-term and sustainable effect. If the result creates more problems than solutions, segregates a group rather than integrates and promotes fear rather than understanding, then the lack of true leadership will be the only thing that comes from this legislation. Enforce the laws that already exist for employers, make arrests for true and legitimate violations. Do not arrest people based on the color of their skin.
-Cynthia M. Ceballos, Ceballos Legal Consulting, L.L.C.

New Orleans, Louisiana: Hispanic Chamber of Commerce of Louisiana
Aside from the emotional brutality of the act for immigrants, the recent anti-immigrant legislation enacted by the State of Arizona poses dire economic consequences. Worker productivity will be drastically reduced as they will be constantly worried about arrest without provocation. Employers will be less likely to hire immigrants as they will fear fines and possible criminal prosecution.

Moving up the corporate ladder, the legislation will quickly degenerate to harassment as doctors and other professionals and business leaders who are unfortunate enough to have a slight accent or brown skin will be publicly humiliated on the streets or at their place of employment as they are stopped by the police. Moreover, it will facilitate a breakdown in the process of integration and assimilation.
-Darlene Kattan, Executive Director, Hispanic Chamber of Commerce of Louisiana

New Orleans, Louisiana: Tulane University, Center for Inter-American Policy & Research
From an international perspective, this law does not help U.S. relations with Latin America. Despite its local origin most countries in the region will view it as evidence of American arrogance and a continuation of its strong-handed policies. The U.S. will be hard pressed to speak in favor of democratic expansion and consolidation, or to condemn its reversals, when its own states promote laws that are potentially racist and oppressive, clearly arbitrary, and likely unjust.
–Ludovico Feoli, Executive Director, Tulane University, Center for Inter-American Policy & Research

Atlanta, Georgia: City of Atlanta, Office of the Mayor
Arizona’s newly-passed legislation will have a negative impact not only on the ability of legal immigrants to move freely and exercise their rights in the State of Arizona but will also impact businesses and enterprises that depend on the participation of immigrants as part of their labor force. In my view this law legitimizes racial profiling, and imperils the lawful movement of persons who for whatever reason might be perceived to be illegal immigrants, opening the door for abuse.

It is important to note that this law has been approved at a time when we are witnessing the growing electoral power of the Latino and Hispanic population in many areas across the country and growing numbers of Latinos and Hispanics participating in the development of small businesses. This correlates with their growing participation in competitive political races.

In the State of Georgia Latinos and Hispanics have worked on a very aggressive effort to promote a rational and respectful debate on immigration reform. However, we are experiencing a push for new legislation currently under discussion at the general assembly: SB67=KIA GO HOME legislation that would make Georgia the only state in the nation with an English-only policy for driver license exams.
-Luz Borrero, Deputy Chief Operating Officer, City of Atlanta, Office of the Mayor

Atlanta, Georgia: Metro Atlanta Chamber
We are fighting our own battle in Georgia with an “English only” bill that has been introduced in the legislature. The arguments we are making against it extrapolates to the Arizona law. Of course, the Arizona law is more severe and could end up in an economic boycott of the state similar to the threats we got a few years ago over the Georgia state flag. This has significant impact. The arguments we are making here against the “English Only” are:

  • The negative message it creates. It will be very difficult to explain the law and differentiate between permanent vs. temporary residents. Foreign investors will not understand this argument; instead they will only understand that it mandates English only.
  • When confronted about this issue in our business recruitment efforts, having to explain the bill will muddle our current, clear marketing messages to attract foreign investment. Prospects have confronted us in the past on issues related to water, transportation, etc., and they will equally confront us on this.
  • Competing states will use this bill in their targeted marketing efforts against us just as they currently do with other issues such as transportation and water issues.
  • This law will have a direct effect on EB-5 visa foreign investors, which grants resident status when investing in job-creating projects. EB-5 related projects are an excellent recruitment tool, which Georgia is currently developing and our immediate neighboring states are currently using. This is a competition issue for Georgia.

-Jorge Fernandez, VP Global Commerce, Metro Atlanta Chamber

Nashville, Tennessee: Nashville Area Hispanic Chamber of Commerce
In our role as advocates for Hispanic businesses, we are very concerned of the adverse economic impact of SB 1070 and its negative influence on other states that may follow this hostile and potentially discriminatory example. SB 1070 is destined to have a devastating effect on key industries such as hospitality, agriculture, construction, food service, and tourism by creating fear among out-of-state visitors and local residents and unnecessarily concerning prospective investors about immigration raids based on the profiling of workers who appear to be foreign. Businesses will be discouraged to hire and may terminate employees based on suspicion just to avoid breaking this draconian law.

This kind of state legislation signals the urgent need for comprehensive immigration reform that addresses both border security and safeguards communities that are vital to the economic growth and prosperity or our nation while protecting the civil rights of all people.
-Yuri Cunza, President & CEO, Nashville Area Hispanic Chamber of Commerce

Nashville, Tennessee: Millennium Marketing, LLC
The effect of the new laws implemented in Arizona will have a direct impact on the agricultural industry, mostly cotton and citrus as well as cattle. The service and hospitality industry will also notice the effects of this law in a very short period of time. Another important industry in Arizona is tourism, which will be affected by negative publicity, especially as it relates to U.S. residents of foreign origin and international tourists. Conventions and business travel will definitely be adversely affected by the implementation of this law. The incidence of community reactions across the nation, such as boycotts of sport teams, Arizona-made products, and more will also have a negative impact on Arizona’s economy.
-Ramón L. Cisneros, President & CEO, Millennium Marketing, LLC

Omaha, Nebraska: Connoisseur Media
The economic impact of a law like this will be devastating to say the least. The trickle-down effect of companies losing money due to reduced staffing levels from employees’ fear of showing up for work as well as people simply in fear of going out in public is unfathomable. When sales decline, expense cuts must be made and the resulting damage will be felt by a web of other businesses. Some businesses would close, others would operate at a greatly reduced level. Of course, the loss of basic human rights due to legalized racial profiling is in itself catastrophic.
–Jim Timm, General Manager, Connoisseur Media

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