With the new immigration policy to crack down on undocumented immigrants who are using fake Social Security number and employers who hire them, many Korean business owners in New York, who are already suffering from difficult economic times, are reeling under the shock of what they see as a further economic burden. Business owners in such diverse branches as dressmaking, construction, and groceries are all saying the same thing: These new regulations, demanding increased enforcement against the hiring of illegal immigrants, will seriously impact profits and earnings in New York. In addition, the business owners fear that increased enforcement will lead to a labor shortage; many businesses are built upon, and have survived until now, only through the employment of low-income manpower.
So, Korean business owners are joining together to discuss what preparations can be made, and what they can expect in terms of business, in light of this new immigration policy. In addition to businesses in the dressmaking, construction, and grocery branches, restaurants, and similar labor-intensive businesses, which typically employ large numbers of low-paid workers, see themselves as potential targets of increased investigation and enforcement by immigration inspectors. Business owners almost unanimously agree that the increased enforcement will cause problems, and that is why they have begun joint discussions about what the future holds in store, although solutions do not seem to be on the horizon.
The largest problem businesses face is two-pronged: less manpower and decreasing income. If businesses owners begin to hire legal immigrants, then they feel they will not be able to cover the increased costs of paying higher wages. More problematic is the viewpoint shared by almost all business owners that manpower is scarce, and that to find qualified workers to fill vacated slots will not be an easy task.
A member of the New York Korean Construction Association noted despondently, “This decision by the federal government to enforce hiring policies will have a direct negative impact on businesses. Business owners will suffer under the burden of paying higher wages. This, in turn, will make managing businesses more difficult.”
A member of the New York Korean Sewing Association said, “In the case of earnings, we see great problems in the future. The bigger problem, however, is securing an adequate workforce. We anticipate that the demand for qualified workers will far outweigh the supply of available workers. Right now, we should be focusing our effort on solving this huge problem of providing manpower to our businesses.”
Right now, most Korean business owners are extremely sensitized to the problem, and are caught up in trying to understand the detailed contents of the new enforcement bill. Most are busy preparing ways of protecting themselves from what they see as a new governmental slap. Some business groups have set up seminars to educate owners on the new regulations.
Not all Korean business owners are worried, though. Most Korean small-business owners are not as worried as their large-scale counterparts; they believe that the emphasis of enforcement will focus on large-scale businesses. As well, the maximum penalties and fines imposable for hiring undocumented workers are not as daunting, since they hire far fewer workers.
Mr. Kwang-chol Park, chairman of the New York Korean Fruit and Vegetable Business Association, said, “We are thinking a lot about this new enforcement measures in our industry. We haven’t found a clear solution to the problems we will have to face because of this legislation. Obviously, we are advising all of our business members to scrupulously check for and verify employees’ Social Security numbers and personal data.”
Mr. Kwang-chol Chon, chairman of the New York Korean Business Owners Association, said, “I am planning to hold an educational seminar about this new legislation, so that all of our members can be clear about its content and impact, can begin to think about ways to prepare for its implementation, and get a better grasp of what the federal labor laws are about and what compliance means in this case. I’m also considering putting together a handbook on the issue for our Association members.”
