Unauthorized Immigrant Workers at Chipotle Mexican Grill Restaurant

Yelitza Garcia

October 30, 2014

Discussion Case: Unauthorized Immigrant Workers at Chipotle Mexican Grill Restaurant

BA 434

Starting in 2011, federal immigration agents started investigation the Mexican grill restaurant Chipotle, who had chains all around the country in order to find out if they were hiring immigrant workers. Chipotle of course mentioned they had nothing to hide and that they would comply with the investigation. They are a chain restaurant who specializes in tacos, burritos, and salads made fresh. Chipotle has become very successful, with 31,000 employees and 1,200 chains, making $2.27 billion in revenue even when the economy was at its lowest point. The case talked about the procedures of which unauthorized immigrants can work in the United States which are that they need to apply for a green card, and an H-1 or H-2 visa. Once getting hired, they must file an I-9 form. In the United States, illegal immigrants make up 12 percent of food prep workers, most earning minimum wage or less than minimum wage.  Over the past decade, government policy toward people in the United States illegally has undergone a sharp transformation. The Obama administration focused on the employers as being responsible for the illegal immigrants. People from the Immigration Customs Enforcement would randomly check all paperwork of employees, and if they were illegal worker the manager would be fined or even have charges against them. Chipotle ended up letting go of 450 workers who could not prove their eligibility to work in the U.S. and Chipotle then became more serious and strict about their paperwork for each employee to confirm their eligibility to work. Chipotle mentioned that even though they went through the appropriate measures, there is always a possibility that there can be an illegal worker in their chain without their knowledge. Unfortunately, this scenario didn’t only occur with Chipotle, but with many other companies who have hired illegal workers, and this issue will most likely continue.

1. I do believe being an unauthorized immigrant is a form of workplace diversity. Although it is illegal to hire undocumented workers many companies do so, to keep costs low and benefit those workers who are willing to work more hours and do much more labor than those in the United States. The text in this chapter states “Immigration has profoundly reshaped the workplace,” with nearly 14 million immigrants entering the United States – despite the net decline in jobs within 2000-2010. Furthermore, the text mentions that immigrants now make up about 16 percent of U.S. workers, “increasing language and cultural diversity in many workplaces.” With diversity in a workplace, companies may become more successful with the different cultures, and therefore can mold their companies to fit into different lifestyles.
2. In this case there are benefits and risks for hiring unauthorized immigrants in the workplace. The biggest benefit for Chipotle, and other companies mentioned, is that labor costs are reduced. With labor costs low, the company obviously benefits but the consumer also benefits because it could result in reasonable prices for the food. Another major benefit is that for many companies, immigrants are considered to be better workers. They are willing to work more hours, for less money, and do a great job at their position because they come to the United States to benefit and support their families. Many companies, including Chipotle, pay illegal immigrants below minimum wage and with the benefit of low labor costs it may result in paying the unauthorized workers a little more. A risk for these companies, however, is getting caught by ICE and either loses the company or not have many employees left because they have been let go for being immigrants. This also is a risk for immigrants because they could get deported back to their place of origin. A risk that workers face is mistreatment. Because they are undocumented, many companies take advantage of that and they get underpaid, work in unsafe conditions and receive no benefits if something happens to them during work hours.
3. Customers are affected in a positive way by having unauthorized immigrants working. Since they are working for less money it then turns into less labor costs which in turn can lead to low prices on items. Investors can also be affected as mentioned with customers but they could be negatively affected if the company gets caught for hiring illegal workers; in that case the investors would lost out on money, possibly even lose their investment and be frowned upon just as the business would be. It could also be said that the community is affected both positively and negatively. The negative aspect is that workers in the community may not have a chance of getting hired because they’d have to get paid more compared to unauthorized immigrant workers. The business will want lower labor costs if they have a choice to do so, but it also leads to a lack of social responsibility that the company follows and gives to their community. A positive aspect of this is that it produces economic growth for the community, by producing more money since labor costs are low.
4. I would have to agree with the public policies and enforcement strategies described in this case. Although immigrants come to the United States to make a living for their families and save for their families in a way they couldn’t do in their place of origin, it is still considered illegal and they should have to face the consequences as it is stated in the law. There are many programs in the United States that actually help those in other countries who need help providing to their families, even programs who help immigrants get to the United Stated if they are going through a difficult time or life threatening situations; so if immigrants wanted to come to the United States they could find resources that will help them do so without having to cross the border illegally. I also agree with companies requiring to see information about green cards, H-1 and H-2 visas because it allows those that are non-citizens an opportunity to work legally until the visa has expired. Obama’s administration decision to enforce efforts on employers is another thing I also agree with; companies should have the right to know who is working for them, if they’re reliable, and if they are authorized to work in the United States.  
5. I agree in some aspects of Chipotle’s response to the government’s enforcement efforts, but I also disagree. Chipotle mentioned that it was hard to recognize whether their employees were immigrants or not, but then were able to let go of 450 employees when the government announced they would enforce their efforts. There couldn’t have been a way that Chipotle had no idea they hired unauthorized immigrant workers when the potential employees have to fill out a job application which usually asks if one is eligible to work in the United States. If it were true that Chipotle couldn’t tell whether their employees were immigrants or not then they should improve their applications, hiring procedures, and using web based systems to ensure that people are actually authorized to work in the United States. In my opinion, Chipotle knew they were hiring unauthorized immigrants to work because it is more cost effective towards the company. After all, it is cheaper to pay for an immigrant worker than a U.S. citizen.