When Anti-Immigrant Is Anti-Business

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Arizona Goes After Employers

One state where employers are becoming especially concerned is Arizona. A new state law (BusinessWeek.com, 12/13/07) scheduled to go into effect Jan. 1 will suspend for up to 10 days the operating license of any company caught knowingly employing an undocumented worker. If caught a second time, the company loses its license altogether. Business groups—including the Arizona Contractors' Assn. and an employer coalition called Wake Up Arizona—tried to fight the law on legal grounds, but their case was thrown out by a U.S. District Court. The business groups are asking for a preliminary injunction while the case is under appeal.

In the meantime, employers are looking to make a statement with their votes. "The Republican Party has held a corner of support from the business community, but the level of frustration is high," says David Jones, president and chief executive of the Arizona Contractors' Assn., which represents about 300 general subcontractors and suppliers. "They're so wrapped up in ideology that they're willing to throw anything else out the window. That's why the Democrats are starting to realize a potential friend in the Arizona business community."

Farmers and other employers of agricultural workers also worry that Republicans' hard line could prove disastrous for business. Torrey has been so frustrated that she traveled from New York to Iowa to encourage farmers there to join her in supporting Clinton. "She understands the need for comprehensive reform," says Torrey.

Of course, immigration is just one of many issues, and Republicans enjoy the support of business on a number of other topics, such as tax policy. Still, some business leaders are also disturbed by the growth in the federal government under the Republicans' watch and the Administration's lack of action on global warming. Morgan Stanley (MS) Chairman John Mack, a longtime supporter of President George W. Bush, is backing Clinton for President (BusinessWeek.com, 4/27/07). In a Wall Street Journal/NBC News poll in September, only 37% of professionals and managers identify themselves as Republican or leaning Republican, down from 44% three years ago.

Tech Titans Hedge Bets

Some industry leaders who want immigration reform say it simply doesn't make sense to pick one party over the other. Compete America, a coalition that includes Oracle (ORCL), Google (GOOG), Microsoft (MSFT), and Yahoo! (YHOO), is pushing for the expansion of a temporary work visa program and the acceleration of green-card processing. But the group is not endorsing a Presidential candidate of either party in an effort to stay out of the polarized debate.

"Our issue is being held hostage to the broader illegal immigration debate," says Robert Hoffman, a spokesman for Compete America. "In reality the reforms we're advocating aren't hugely controversial, and we've seen strong bipartisan support."

But employers like Gould in Colorado see a reason to take sides. "The Republican Presidential candidates are being irresponsible," he says. "If you suddenly remove 12 million immigrants, the U.S. economy won't survive."

Herbst is a reporter for BusinessWeek.com in New York.