PDA

View Full Version : Why They Come...



Nickdfresh
04-15-2006, 07:55 PM
U.S. Firms Recruit Cheap Labor in Mexico
Saturday, April 15, 2006 2:24 PM EDT
The Associated Press (http://www.adelphia.net/news/read.php?ps=1018&id=12729790&_LT=HOME_LARSDCCLM_UNEWS)
By JULIE WATSON and OLGA R. RODRIGUEZ

SASABE, Mexico (AP) — When Pedro Lopez Vazquez crossed illegally into the United States last week, he was not heading north to look for a job. He already had one.

His future employer even paid $1,000 for a smuggler to help Vazquez make his way from the central Mexican city of Puebla to Aspen, Colo.

"We're going to Colorado to work in carpentry because we have a friend who was going to give us a job," Vazquez said.

Vazquez, 41, was interviewed along the Arizona border after being deported twice by the U.S. Border Patrol. He said he would keep trying until he got to Aspen.

His story is not unusual. A growing number of U.S. employers and migrants are tapping into an underground employment network that matches one with the other, often before the migrants leave home.

"It continues to become clear who controls immigration: It's not governments, but rather the market," said Jorge Santibanez, director of the Tijuana-based think-tank Colegio de la Frontera Norte.

As debate over immigration heats up in the United States, more and more U.S. companies in need of cheap labor are turning to undocumented employees to recruit friends and relatives back home, and to smugglers to find job seekers.

Darcy Tromanhauser, of the nonprofit law project Nebraska Appleseed, said companies in need of workers rely on the networks to "pass along the information more effectively than billboards."

"It started out more explicitly, where (meatpacking) companies used to have buses to transport people to come up, and they would advertise directly in Mexico," she said. "Now I think that happens more informally."

At the same time, it has become less risky for companies to recruit illegal migrants. Since the Sept. 11 terror attacks, U.S. prosecution of employers who hire such workers has dwindled to a trickle as the government puts its resources toward national security.

The few cases that are prosecuted, however, highlight how lucrative a business recruiting undocumented workers has become. In one case, a single smuggler allegedly earned $900,000 over 15 months placing 6,000 migrants in jobs at Chinese restaurants across the upper Midwest.

Shan Wei Yu, a 51-year-old Chinese-American, was sentenced in December to nine years in federal prison on charges involving the transportation of 40 of those migrants. Investigations involving the others continue.

Rick Hilzendager, special agent for U.S. Immigration and Customs Enforcement in Grand Forks, N.D., said Yu connected 6,000 migrants from Latin America with jobs in Chinese restaurants in Illinois, Michigan, North Dakota, South Dakota and Wisconsin.

Based in Yu's home in McKinney, Texas, the Great Texas Employment Agency placed ads in Chinese-language newspapers in the Chicago area offering cheap labor from Latin America, investigators said.

Yu sent a recruiter with Spanish interpreters to find migrants in Dallas willing to be fry cooks and dishwashers, Hilzendager said. A team made up mostly of illegal Chinese immigrants rented cars and drove them up.

Yu allegedly charged a $150 finder's fee for each migrant while the drivers earned $300 per worker. Restaurant owners deducted the $450 from workers' first-month paychecks of $1,000.

"It was just so easy," Hilzendager said.

Nick Chase, assistant U.S. attorney in North Dakota, said Yu even offered to replace workers free of charge if one left within two weeks of starting.

"It was a 2-for-1 special — like a pizza," Chase said. "Everything about it was ugly."

The employees, housed in cramped apartments provided by employers, worked 14-hour days and had little outside contact. The case broke open in August 2004 after two Mexican migrants working at the Buffet House in Grand Forks fled poor conditions and were picked up along a highway by Border Patrol agents.

Many of the drivers involved in the scheme were deported to China. Two North Dakota restaurant owners were sentenced to four months each for harboring illegal immigrants.

But many migrants, and many employers, say the recruiters provide a valuable service. Sergio Sosa, who organizes Nebraska meatpackers, said many are seen as heroes in the Mexican towns where the workers come from.

Sosa, speaking by telephone from Omaha, said that in the 1990s companies bused migrants from the U.S.-Mexico border, paying them room and board plus salaries of $100 a week. But after a government crackdown, they began to rely more on their workers to recruit friends and family back in Mexico.

"One of the meatpacking supervisors is from Michoacan, and most of the people working for him come from his town," Sosa said. "There's no official recruiting — it's more internal through family."

Migrants setting out along the border confirmed his account. Guadalupe Mendez, 26, said her sister found her work as a seamstress in Los Angeles. Lorenzo Garcia Ruiz, 38, said friends arranged a gardening job for him in Kentucky.

To make a real dent in this network, the U.S. government would need to go after employers or make them pay the costs of legalizing workers, migration activists say.

But an August 2005 report of the Government Accountability Office, the investigative arm of Congress, indicates the opposite is happening. After the Sept. 11 attacks, work-site inspections by U.S. immigration officials plummeted as they focused on national security cases.

From 1999 to 2004, the number of businesses that faced fines dropped from 417 to three, the GAO said. Data after 2004 could not be compared because the government changed the way it records data.

Investigators say fake documents makes it difficult to prove an employer has knowingly hired an undocumented worker. The business community argues that employers aren't equipped to spot fraud and warns that more investigations could lead to workplace discrimination.

Chase said businesses must be kept in check.

"There are employers out there who are always going to be tempted by the bottom line," he said.

———

Associated Press writer Julie Watson reported this story from Mexico City and AP writer Olga R. Rodriguez reported from Sasabe, Mexico.

Nickdfresh
04-16-2006, 02:07 PM
Mexico's Stubborn Lack of Choices
Oligopolies abound, leaving consumers with few options and high prices. The scarcity of competition is seen as an economic impediment.
By Marla Dickerson, Times (http://www.latimes.com/business/la-fi-mexmonopoly16apr16,0,3276971.story?track=tottext) Staff Writer
April 16, 2006

MEXICO CITY — When voters tossed out the ruling party in national elections six years ago, they gave a resounding no to a continuation of a 71-year political monopoly.

But in another arena in which they can wield their votes — with their pocketbooks — Mexicans continue to be frustrated by a lack of true choice.

Placing a call? For the minority of Mexicans who can afford a phone, their service comes from a telecom group that controls 94% of land lines and 80% of cellular service, charging rates that are among the highest in the world.

Watching TV? Two behemoths own 94% of Mexico's television stations, and recent legislation probably only served to strengthen their grip.

Buying a beer? Whatever the brand, chances are it was brewed by one of two companies whose combined share of the market tops 99%.

With a presidential election coming in July, Mexicans are debating the merits of three major candidates and a host of minor ones vying to succeed Vicente Fox, who is prevented by law from seeking another term.

But analysts and scholars of Mexican business say the country's oligopolies and monopolies, in both the private and public sectors, may prove tougher to dislodge than the Institutional Revolutionary Party, or PRI, which for decades ran things until Fox of the National Action Party was elected president in 2000.

"Mexico has been a paradise to create and sustain unhealthy monopoly practices," said Mexico City political scientist Ricardo Raphael, a researcher at the Monterrey Institute of Technology and Higher Education, who blames weak antitrust legislation and Mexico's long history of crony capitalism for concentrating power in relatively few hands.

Economists say business monopolies have saddled Mexican consumers with high prices, slowed the country's economic growth and exacerbated the divide between rich and poor.

Nearly half of Mexico's 106 million people live in poverty. Yet it has more billionaires than Switzerland — 10 last year — according to Forbes magazine's latest list of the world's richest people. Most of them built their fortunes in Mexican industries that have little or no competition.

And the power brokers may only be strengthening their hands these days. Mexico's business barons have been aggressively defending their turf, rivaling the nation's presidential contenders for headlines.

Mexico's media leviathan, Grupo Televisa, and runner-up TV Azteca, which combined garner nearly every peso spent on television advertising in the country, pushed hard to win approval of legislation last month that granted them additional broadcasting spectrum to help them convert to digital services. The rub, critics note: Nothing in the legislation expressly requires that they pay for it.

Televisa and TV Azteca used their news broadcasts to stump for the law. Mexico's Congress approved the measure handily amid widespread public protests and allegations that lawmakers consented in exchange for bribes and positive news coverage of their parties' presidential candidates during the campaign.

The broadcasters and legislators denied any backroom deals, but many Mexicans weren't convinced. An angry mob roughed up a key Senate leader after the vote. Critics said the law amounted to a giveaway of public assets worth billions of dollars that also would block new players from the market.

Lawmakers caved in to "the vested interests that are the main obstacles to modernization of the Mexican economy," said Mexico City-based political scientist and newspaper columnist Denise Dresser.

Televisa and TV Azteca "used a public concession to defend a private economic interest," Dresser said. "You basically have an economic monopoly determining the rules of the game."

Moguls in other sectors are flexing their political muscle as well.

Mexican trade officials recently succeeded in opening the U.S. market to more imports of Mexican cement, a move that could lower costs for American home builders. But the government hasn't been as considerate of consumers in its own country, who have long complained of inflated prices. At the behest of Cemex, which controls more than half the market here, Mexican officials last year turned away a cargo ship loaded with 26,000 tons of Russian cement.

In the beer industry, Grupo Modelo and Cerveceria Cuauhtemoc Moctezuma, whose brands dominate the Mexican market, supported a new environmental tax on nonreturnable beer bottles that falls heaviest on imports. Importers lack the collection network of domestic giants and therefore sell such nonreturnable bottles.

Attempts by Mexico's Federal Competition Commission to put teeth into the nation's antitrust laws have run into a buzz saw of opposition from business leaders.

Topping the agency's wish list is having the ability to break up companies whose market power is deemed excessive. It's a standard tool provided to regulators in the United States and other developed economies, but one that doesn't exist in Mexico. Corporate titans here are working furiously behind the scenes to keep it that way.

Eduardo Perez Motta, president of the competition commission, vented his frustration at a recent news conference.

"It's incredible that these [businessmen] are fighting to maintain their privileges," Motta said. "They don't have the public justification to do it, but that's what they are doing … [using] all manner of sophistry, legal and otherwise."

Mexico's oligopolies have their roots in protectionist philosophy that shaped the nation's industrial policy after World War II. The goal was to reduce reliance on imports by building up strong domestic players in key sectors of the economy. Through the years, the PRI-controlled government kept a firm hand in the economy through state-owned companies and chummy relationships with some pro-regime entrepreneurs, who were sheltered from competition.

Televisa, for example, functioned for decades as a de facto government mouthpiece in exchange for a virtual monopoly on TV broadcasting. The late Emilio Azcarraga Milmo, who headed the company, once publicly declared himself "a soldier of the president and at the service of the PRI" and reportedly pledged more than $50 million at a party fundraiser to show his gratitude for his company's privileged status.

A devastating financial crisis in the 1980s forced Mexico to open itself to more foreign investment and to unload a spate of state-owned firms. But experts say Mexico's privatizations in some respects saddled the nation with the worst of all worlds: Instead of breaking up public enterprises to spark competition, the government simply transferred them to new owners.

"They replaced public monopolies with private ones," said Celso Garrido, an economist at the Autonomous Metropolitan University in Mexico City.

The best known of these transactions was the 1990 sale of state-owned telephone company Telmex to a consortium led by Mexican entrepreneur Carlos Slim, who used the company as a springboard to expand into mobile phone service and telecommunications ventures throughout Latin America. Forbes recently estimated Slim's fortune at $30 billion, making him the world's third-richest man, behind Bill Gates and Warren Buffett.

Slim has shown a talent for spotting undervalued assets. But critics say hard-nosed tactics have helped him retain a lock on the lucrative Mexican telecom market. Telmex and America Movil, Slim's cellphone company, last year garnered more than 60% of their combined $31 billion in revenue from Mexican consumers.

The office of the U.S. trade representative repeatedly has criticized Telmex's use of Mexico's ponderous legal system to block efforts by Mexican regulators to spur competition. Mexico's central bank governor, Guillermo Ortiz, recently blasted Slim's telecom companies for hampering the nation's competitiveness by charging Mexican businesses and individuals some of the highest rates on the planet.

Slim strongly denied Ortiz's assertions and blamed government monopolies and inefficiency for Mexico's woes. It was an unusual and highly publicized spitting match whose U.S. equivalent would see Microsoft Corp. founder Gates exchanging insults with Federal Reserve Chairman Ben S. Bernanke.

Ortiz also laid into Mexico's commercial banking system, which is dominated by a handful of large institutions, accusing them of stingy lending practices, outsized fees and inflated credit card interest rates that can top 40% a year.

Analysts say a lack of credit is one of the biggest factors retarding economic growth in Mexico, where the vast majority of residents don't have bank accounts and most small entrepreneurs can't get a loan.

"The banking system mostly serves the interest of big corporations," said Alfredo Coutino, senior economist at West Chester, Pa.-based Moody's Economy.com.

Bully pulpits are one of the few reliable tools that Mexican officials have at their disposal. Regulators have scored a few victories, such as opening Mexico's airline industry to discount carriers. And the nation's Congress may well approve some changes to antitrust laws this year. But experts say the reforms will fall short of what officials say they need to foster true competition.

Mexico's public monopolies may be even harder to crack.

Debt-strapped oil giant Pemex needs billions of dollars in new investment to shore up Mexico's rapidly declining petroleum reserves. But the nation's constitution prevents any equity investments in the state-owned firm by foreigners, inhibiting Mexico's ability to team with major oil companies to find and extract more crude.

Similar rules are burdening Mexico's publicly owned electricity sector, whose unreliable service and high rates put yet another damper on economic growth.

But analysts said many Mexicans remained suspicious of further sell-offs of public assets, given the experience of companies such as Telmex, whose sale transformed buyer Slim into a billionaire in a country where 60% of Mexican households still lack a telephone.

"There have been a lot of abuses in the past," economist Coutino said. Government officials "don't have the ability to convince society about the benefits."

*

(INFOBOX BELOW)

Kings of their markets

When it comes to competition, less is more for Mexico's oligopolies, which dominate key sectors of the economy.

Market share of companies in selected industries

Broadcasting: Grupo Televisa -- 56%*, TV Azteca -- 38%*

Cement: Cemex -- 54%, Holcim Apasco -- 23%

Beer: Grupo Modelo -- 57%, Cerveceria Cuauhtemoc Moctezuma-- 43%

Tortillas/corn meal: Gruma -- 73%, Minsa -- 15%

*Percentage of television stations owned

-

Sources: Company reports, Times research

Nickdfresh
04-16-2006, 02:12 PM
And another reason why Mexican immigrants are coming here illegally: Shit! (http://www.cabowabo.com/)

Nickdfresh
04-22-2006, 08:27 PM
No comments on this? Do we only respond to easy, boring redundant op-eds where actual facts matter little?

LoungeMachine
04-22-2006, 08:33 PM
Originally posted by Nickdfresh
No comments on this? Do we only respond to easy, boring redundant op-eds where actual facts matter little?

"Do we only respond to Big Bland Brian?" would have been simpler ;) :D



I just can't get jacked up over immigration right now with Chimpy testing Nukes in Nevada, China on the verge of annexing us, and a stock market "correction" looming on the horizon.

The BushCO house of cards is about to implode.......

Anyone remember Rome?

Nickdfresh
04-23-2006, 10:38 AM
Sorry, we'll gladly have the "fuck Mexico" posts...

ULTRAMAN VH
04-23-2006, 03:30 PM
Gee, maybe those perusing the frontline pay a little more attention to BBB's post's because illegal immigration is a real problem, especially for the middle class. You, the far left and the current Administration think it is a boon to this country to allow millions of illegal's to flood this country and run free among the tax paying middle class. Take a look at your paycheck Nick. Is it not enough that we pay for welfare, the war, high gas price's, 72% electricity hike's and other numerous bullshit government programs. Now we are fitting the bill for millions of illegal aliens and when the Amnesty Bill is passed, their families will also be taken care of with tax payers money. I really don't give a frogs fat ass why they come, but I would really prefer they leave. Ask the tax paying legal immigrants who came over here though proper channels how they feel about illegal aliens.

Redballjets88
04-23-2006, 03:49 PM
Originally posted by ULTRAMAN VH
Gee, maybe those perusing the frontline pay a little more attention to BBB's post's because illegal immigration is a real problem, especially for the middle class. You, the far left and the current Administration think it is a boon to this country to allow millions of illegal's to flood this country and run free among the tax paying middle class. Take a look at your paycheck Nick. Is it not enough that we pay for welfare, the war, high gas price's, 72% electricity hike's and other numerous bullshit government programs. Now we are fitting the bill for millions of illegal aliens and when the Amnesty Bill is passed, their families will also be taken care of with tax payers money. I really don't give a frogs fat ass why they come, but I would really prefer they leave. Ask the tax paying legal immigrants who came over here though proper channels how they feel about illegal aliens.


i agree 100%

BigBadBrian
04-23-2006, 06:58 PM
Originally posted by ULTRAMAN VH
Gee, maybe those perusing the frontline pay a little more attention to BBB's post's because illegal immigration is a real problem, especially for the middle class. You, the far left and the current Administration think it is a boon to this country to allow millions of illegal's to flood this country and run free among the tax paying middle class. Take a look at your paycheck Nick. Is it not enough that we pay for welfare, the war, high gas price's, 72% electricity hike's and other numerous bullshit government programs. Now we are fitting the bill for millions of illegal aliens and when the Amnesty Bill is passed, their families will also be taken care of with tax payers money. I really don't give a frogs fat ass why they come, but I would really prefer they leave. Ask the tax paying legal immigrants who came over here though proper channels how they feel about illegal aliens.

Great post.

FORD and a few of the other libs were bitching right along with the rest of us when we were bitching about the Bush plan for "guest workers" and amnesty last year.

Now, it's evidently not that big of an issue. Both sides are doing nothing more than gunning for the vote of the children of the illegal immigrants. That's the first damn thing that needs to be done away with...granting citizen status to the children of illegal immigrants just because they were born here.

I'll tell you another thing, to answer your question, LEGAL immigrants aren't too damn happy with granting any form of amnesty to these illegals. At least the ones I know, and that's quite a few.

We should take a cue from Canada. Illegals in that country get very few, if any, benefits.

:gulp: