Employers adapt to ICE raids and a workforce on edge

5 Aug 2025 · 29 min

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Masters of Scale - Episode Summary: Employers Adapt to ICE Raids and a Workforce on Edge

Episode Overview In this episode, host Bob Safian speaks with Rebecca Shi, the Executive Director of the American Business Immigration Coalition (ABIC). The conversation focuses on the impact of the Trump Administration's immigration policies, specifically the increase in ICE raids, and the resulting anxiety within the workforce. Shi shares insights on the coalition's efforts to advocate for policy reform that supports a stable workforce reliant on immigrants.

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Key Themes

  1. Current State of Immigration Policy
  2. The Trump Administration's aggressive immigration enforcement has led to mass deportations, targeting undocumented immigrants in various sectors.
  3. ICE has arrested a record number of individuals, creating uncertainty and fear among both undocumented workers and their employers.
  1. Economic Impact of Immigration Raids
  2. The increase in deportations is not only affecting immigrant workers but is also causing significant repercussions within the broader economy:
  3. Essential sectors such as agriculture, healthcare, and construction rely heavily on immigrant labor.
  4. Business owners are experiencing reduced workforces, impacting productivity and economic output.
  5. Employers report that even legal workers are fearful of ICE actions, leading to decreased attendance and productivity.
  1. Advocacy for Policy Reform
  2. ABIC, comprising 1,700 employers and CEOs, advocates for a balanced approach to immigration that ensures border security while allowing for a legal workforce.
  3. Shi emphasizes the need for comprehensive immigration reform, as the current system has not been updated since 1986.
  1. Legal Work Permits and the Dignity Act
  2. Shi explains the Dignity Act, which proposes a path to legal status for undocumented workers who have been in the U.S. for at least five years, highlighting bipartisan support for the initiative.
  3. The act aims to balance legal immigration with necessary border security measures.

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Insights from Rebecca Shi

  • Contributions of Immigrants: Immigrants play a crucial role in maintaining the U.S. economy. Their removal would increase costs for consumers and strain services like elder care and food production.
  • Public Sentiment: Polling indicates that a majority of Americans support secure borders but oppose the enforcement-only approach that results in deporting law-abiding workers.
  • Employer Advocacy: Business leaders are encouraged to voice their concerns regarding immigration policy to lawmakers and the administration, as their input can influence policy outcomes.

Challenges Ahead

  • Political Divides: Achieving comprehensive immigration reform remains complex due to entrenched political positions and the influence of extreme factions within both major parties.
  • Economic Consequences: A strict enforcement approach could lead to labor shortages, higher prices, and a potential economic downturn, affecting all Americans.

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Conclusion Rebecca Shi presents a balanced perspective on the immigration debate, advocating for a pragmatic approach to policy reform that acknowledges the essential role of immigrants in the U.S. economy. This episode underscores the urgency for business leaders and policymakers to collaborate on solutions that address both security and the economic needs of the nation.

Listeners are encouraged to engage in discussions surrounding immigration and to support initiatives aimed at creating a stable and fair immigration system.

For more information, visit the Rapid Response website: [Rapid Response](https://www.rapidresponseshow.com/)

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1:17Some parts of the administration would like to deport up to a million people by the end of this year and 2.2 million by the end of next year. So, you know, that's who's picking our food, who is taking care of our American elders, and who's building our homes, right? And so if the level of removal is achieved, I mean, that's going to impact every single American citizen, whether we realize it or not.

1:52That's Rebecca Shee, Executive Director of the American Business Immigration Coalition. I wanted to talk with Rebecca about the controversy over ISIS immigration raids at workplaces across the U.S. Rebecca takes us through the looming impact on the U.S. workforce, plus the internal conflict within the Trump administration over deportation, and how business leaders are pressing the White House and lawmakers for alternate solutions. Rebecca also explains why, counterintuitively, RightNow offers a rare moment of opportunity to update U.S. immigration policy. Her insights manage to be both eye-opening and optimistic, so let's get to it.

2:32I'm Bob Safian, and this is Rapid Response.

2:42I'm Bob Safian. I'm here with Rebecca Shee, Executive Director of the American Business Immigration Coalition. Rebecca, thanks for joining us. Thanks, Bob. It's great to see you. So for our listeners, can you explain what the American Business Immigration Coalition is, when it came together and why? Yeah, so ABIC, we are a bipartisan coalition of 1 ,700 employers and CEOs around the country representing agriculture, healthcare, long-term care, construction, hospitality, manufacturing, and technology, really any and all sectors that depend on immigrants as their workforce, as entrepreneurs. And our goal is to advocate for common sense immigration solutions that both ensures a managed, secure border, but also supports a legal and stable workforce to keep our economy competitive.

3:41This year has seen a dramatic change in immigration policy, including a major increase in immigration raids, people arrested in public, at work. ICE has arrested 30 ,000 people in June alone, which was a record in the last five years. How does your coalition view this change in policy, this change in activity? What's been your response? It's been a really uncertain and anxiety-inducing time for employers and especially our smaller mom-and-pop, local farmers, restaurant owners. So, you know, if they are looking for somebody who's a violent criminal, who's convicted, MS-13, they shouldn't be in the community.

4:26But as we know, and FBI's own data shows that immigrants by and large are law abiding and they're working. And so employers and ABIC, we've dedicated an enormous amount of time and energy and lobbying efforts to try to change the law so that we can actually have a modern and legal immigration system that can benefit both employers, but everyday Americans. I mean, the number of undocumented immigrants who came to the U.S. during the Biden administration was unprecedented, right? I mean, it was a huge wave. The impetus to address that, does APIC object to that or just sort of how it's being done?

5:09The American public and employers are in the same boat, that they don't like a chaotic, disorderly, unmanaged border, and that we have to restore some type of sanity. And, you know, President Trump has secured the border. You know, last week, border crossings are down by 99.5 percent from a year ago. So the border is secure. And that's why as employers and we're working with both sides of Congress right now and we're reasonably encouraged by what the president has actually said, that we can't just deport everybody because nobody's going to be picking our food or preparing our favorite dishes or caring for our elderly American citizens.

5:54But that we have to have a balanced approach and that includes a legal work permit for people that are working, they're law abiding, they're paying taxes. And so there's just got to be a balanced approach here. The style of immigration enforcement has changed with National Guard mobilized and like proliferation of these sort of masks and other identity shields. I mean, enforcing the law is is laudable and appropriate, but these tactics seem like they send other kinds of messages, too. Exactly. And I think we're seeing it in the polls. I mean, the polling in the last few weeks, and we actually did some polling ourselves that says, like, look, Americans support a secure border and deporting violent criminals.

6:40But, you know, if you're talking about somebody getting picked up at a work site and is vetted, is law abiding, those people shouldn't be deported. And over 60 percent of the American public don't believe this type of enforcement only approach is the right way. Some workers, they're going to stay home or skip work because they're scared of these raids or of ICE. Yeah, we're seeing this in North Carolina. We have a member, U.S. military certified manufacturers of parachutes. He had to lay off, you know, about 50 of his workers because their legal work permits have ended. that has caused him to reduce the number of parachutes that he's able to manufacture for the U.S.

7:28military. And he's also found that it's having an incredible impact on his American-born workers. People, even if they themselves are legal, are worried about their co-workers, worried about their neighbors or their family members who can be grabbed and detained and deported one day. I'm curious, do you have advice for what measures business leaders can take? Because they can't say with certainty that, like, you know, it's safe for people to come to work. And they like they never they never know if ICE is going to take whoever they're going to take. That's correct. And people are reading in the stories about even U.S.

8:10citizens being mistakenly detained. And so the fear is real. I mean, what we advise with employers and, you know, we have an employer, what we call a rights and responsibility training program in the event of an ICE visit or an audit or, you know, enforcement actions to make sure that you're calm and you're respectful with the ICE officers, that you do have both the rights and the responsibility to allow 72 hours before you hand in documents like I-9s, and that you take that time to really do a self-audit, a self-assessment. Sometimes it might not even be an immigration issue. It may be that you incorrectly filled out page nine of the I-9 form, right?

8:55And so that's something very simple that you can correct. At the end of the day, Congress has to step up and fix this issue. We have brought members of Congress from both aisles to workplaces and job sites so that they can visit and really take the time to understand your workforce needs and your challenges. And your members of Congress can be advocates for you, you know, with the Department of Homeland Security, with the administration, and really be able to achieve some meaningful solutions and not just this enforcement only, you know, remove them all approach. The last time our immigration system was updated was 1986.

9:34We didn't have the internet. We didn't, nobody talked about AI, right? And so it's just an incredibly outdated policy that we're trying to jam into a modern economy. And so it is time, you know, for this administration and for Congress to really step up and fix this so that it is aligned, you know, with the economy of 2025. There is a new legislative effort, the Dignity Act, to reset immigration policy. Can you explain what it would do? Is it a good solution? Is it a likely solution? First, it does provide a path to legal status and a work permit for people that have been here at least five years.

10:17They're working. They're paying taxes. They're law-abiding. They have to be vetted in order to get this legal status and work permit. It has 20 members of Congress, 10 Republicans, 10 Democrats working together to push this forward. There are provisions in this bill that's uncomfortable for both sides. It has border security. It has asylum reforms. So it is something we're very encouraged about. And I know the sponsors have been active in terms of talking to the administration to get their support. to pass a big immigration reset is like, that is a tall order. I mean, there's a reason that we haven't had any legislation since 1986, right?

11:02Yeah, exactly. I mean, both sides have kicked this tan down the road and also have rather politiced than making solutions. I mean, this issue has really been held hostage by the extremes of both sides. I think a couple of things that That makes me optimistic in this moment. One is that voters are really, really fed up in terms of how chaotic the system is. And then I think the second thing is that the border is secure. I mean, I've been working on this for nearly two decades. And just the number of times members of Congress, particularly on the Republican side, have said, hey, we can't do anything.

11:44Can't do anything for the dreamers, for the farm workers, for like these groups that are very, very popular even or H-1B or tech workers. Why is because the border needs to be secured first and the border is secured now. Right. The president has secured a border. And so that makes me more optimistic. Let's work on the other steps that can secure our workforce as well. Yeah. I mean, the president hasn't just sort of declared victory. I mean, there's still new money that was allocated recently for more border security, which, if I'm hearing you right, may not actually be what's needed at this point.

12:21Yeah. So the$175 billion from the big, beautiful bill for detention centers, beds, hiring additional ICE officers to detain and arrest immigrants. We know that, you know, internally, some parts of the administration would like to deport up to a million people by the end of this year and 2.2 million by the end of next year. And that's extremely concerning for us because, you know, when you think about it, the undocumented workforce is really only about 1 % of our entire American workforce. So it's very small, but in certain sectors, so agriculture, over 40 % of our farm workers are undocumented.

13:08Construction, over 30%. And then for elder care, long-term care, there's about 20 to 30 % of those healthcare aides are undocumented. So, you know, that's who's picking our food, who is taking care of our American elders, and who's building our homes, right? And so if the level of removal is achieved, I mean, that's going to impact every single American citizen, whether we realize it or not. And so, you know, grocery prices going up, American elderly not being cared for, and housing prices going up. And that's not something, you know, I know the president doesn't want that headed into a competitive midterms.

13:52As you talk about this, it sort of sounds like, well, for business, continuing at the pace that we're going at with enforcement maybe isn't what's best for the business. To what extent do you find that business leaders are wary about expressing this concern about immigration policy to the White House? They sort of fear of becoming a target if they speak out? Yeah, I mean, I think businesses are worried and they're worried about planning. But I would say that businesses at the height of the enforcement that we saw the last few months, like when there was a quota of 3 ,000 people removed a day, I know that businesses did make outreach to the White House.

14:37Some of them were able to get to the president directly. you know, the smaller farms and hotels have talked to the Republican members of Congress and sort of this chorus of voices from the business community, whether it was privately or some of them were public, it did lead to the president in seven different incidences, at cabinet meetings, at press conferences, or, you know, at the Iowa 4th of July celebration, the president said, look, I see these aggressive ice raids are hurting our farms and restaurants and hotels. I'm hearing from the businesses. So I'm telling people to stop and I'm moving forward on the legal work permit program.

15:20And that was a direct result of businesses speaking up about the situation. I mean, we've seen a lot of back and forth within the administration on sort of easing rules in ICE raids, right, for farm workers, for the hospitality industry, different statements from different parts of the administration, the White House, Homeland Security, Department of Labor, of Agriculture. Where does all that stand? I mean, can employers or workers trust that any announcement will stick? That's an excellent question. And there is a clear internal struggle within the White House on this policy. And we want more words of legal work permits from the president.

16:05At the end of the day, Congress has to legislate. There is only so much they can do by executive order. And then we're caught up in this back and forth and all of these legal fights. And so Congress has to step up at this moment. What our polling show last week was really interesting that the fact that the president has said several times about a legal work permit program does give the cover for Congress to move forward because the president said it, the Republican primary base are with him at 78 percent. And, you know, then you see also Hispanic voter growth up to 83 percent for this type of balanced approach.

16:45In some ways, President Trump faces a classic innovator's dilemma. He's arguably solved the border security crisis, but looking at how voter sentiment has shifted in the face of mass deportations, he may need to pivot to a new strategy. In the meantime, how is the U.S. workforce adjusting and what might the economic impacts be for American-born workers? We'll talk about that and more after the break. Stay with us.

17:18Real leaders don't back down when the stakes are high. They innovate, they push forward, and then they take the stage at the Masters of Scale Summit. Join us in San Francisco, October 7th to 9th, to hear from the CEO of the New York Times, scientists using cutting-edge technology to find cures, the leader of crypto powerhouse Coinbase, a retired four-star general, and many, many more. apply now at mastersofscale.com slash apply25. That's mastersofscale.com slash apply25. If you're ready to take your startup from idea to impact, then AWS is your launchpad. From data storage to machine learning to secure app hosting, AWS gives you the tech trusted by the world's fastest scaling startups.

18:07And here's the best part. Join AWS Activate today and you could score up to$100 ,000 in AWS credits tailored to your stage and network. Go to aws.amazon.com slash activate and start building. Expanding your business in the U.S. can feel like a maze. Every state has its own payroll, benefits, and compliance rules, which can pull your focus away from growth. That's why founders use Deal. Deal is the professional employer organization, or PEO, that gives you a dedicated HR expert plus Fortune 500-level benefits for your team. The National Association of PEOs says businesses can grow twice as fast if they use one.

18:51So if you're scaling, make it simple with Deal. Go to deel.com slash MOS and get up to three months free. Before the break, Rebecca Shee of the American Business Immigration Coalition talked about how business leaders are quietly pressing the Trump administration to pull back on its aggressive enforcement and deportation efforts. Now, she talks about the economic pros and cons of undocumented workers, why American-born workers could pay the price for mass deportations, and what makes her optimistic about the future. Let's jump back in. Your own family story is part of the motivation for your work.

19:38Your mother was an undocumented worker for many years, as I understand it. And you yourself came to the United States as an immigrant. What was needed so that your family could have safely lived and worked here together? Yeah, so I came when I was 10 years old, and my father is a U.S. citizen, and then I quickly became a U.S. citizen. And my mom struggled with her legal status while I was growing up, and she was a doctor in China. So for 25 years when she didn't have legal status, she was working in restaurants and then she had a second job taking care of elderly in the nursing homes. And she just I just remember she worked all the time.

20:29Like she was, you know, making sure that she was, you know, helping me and then, you know, pay my college. But when she got her green card and she was 61 years old, the first thing she did was she applied to like 10 different jobs at the hospital for her profession. And she ended up running a laboratory directing 20 other histologists. And she was helping patients with ulcer, cancer, and later COVID and just loved it. And it just shows that, you know, when you legalize people who are already contributing, you just unleash their economic potential. And that's good for all of us. This country's relationship with immigration is so complicated because, of course, we all came here as immigrants at different times in different ways.

21:19And it's been a great advantage to the businesses and the economy of the U.S. to have sort of fresh, you know, young, often talent be part of it. And yet there's also this anxiety, this fear that, you know, new people are going to take away what we have. How do you square that, those two different sides of this? If you look at history, the last time that our immigration levels pushed 15, 19 percent was in the 1910s. And around that time was also there was huge backlash and the economy wasn't doing well. And so then the Chinese Exclusion Act was passed. And, you know, for nearly 50, 60 years up until the Voting Rights Act of 1965, there was almost zero immigration.

22:13So that number of foreign-born was reduced to about 3%, 4%. And, you know, we kind of experienced the same thing the last few years when for the first time our foreign-born population pushed up to 18%, 19%. And we are experiencing a similar backlash. But again, we are in the economy of 2025 and no longer in 1965. So we really should have a different response. We saw the jobs report last week, right? And the job growth in July is 74 ,000. And, you know, nearly all economists say that we need at least 100 ,000 jobs created in order just to keep this economy moving. And the main reason is because we're short about a million workers over this last four months.

23:00People who have either been detained or deported or people that just for fear of being sent to a different country have self-deported, right? And so it is something that we're going to have to deal with head on. But I think we're encouraged by what the president has said recently. And he's a businessman. He knows the workforce that requires. And to your point about the hunger of immigrants and foreign born is necessary for any company or any economy to be fully competitive. In all the news about immigration raids, we don't hear very much about employers facing consequences for hiring people without proper documentation.

23:42Why is that? Might that change with more onus being put on businesses? I think you're starting to see that change. So there was a large raid at a meat processing plant in Nebraska. And that meat processor actually was E-Verify compliant. And, you know, he did e-verify and ICE came and detained about and removed about 90 workers. And, you know, his response and he is right. This e-verify system as is is a really flawed system. Sometimes it will mistaken people's names, catch people that are U.S. citizens or just completely misidentifies people. So it's important to recognize that one of the reasons, key reasons, drivers of why immigrants are in this country is because somebody gave them a job.

24:33And so it is one of the reasons why, you know, our coalition and our employers have really taken it upon themselves to really push for a solution that they can come out of the shadows and work legally. And that's actually good and protects every American worker when we don't have a second class system, when we don't have a easily exploitable group of people because they're in the shadows and living in fear. You ensure that their rights and wages are protected, not just for them, but for every American worker as well. I mean, ABIC came together looking for sort of a lasting long-term reform to immigration policy.

25:14And I just I I wonder, like, is that possible in an environment that's so charged? And I know you're optimistic about it, but like what why why is this all so hard? I think it's hard because it's easy to play up the fears and it's easy to blame, to point fingers. you know, fingers. But I think at the same time, the majority of Americans, you know, do believe in steps forward, and especially for people that have been here and have earned that legal status that, you know, the everyday American is a lot smarter than the professional politicians, right, that they don't need all or nothing. Something like a legal work permit, like the president has said is something that's that's broadly supported and then i think the other piece is just that you know politicians for some of them have to run every two years and so it's like very easy right to run an ad um calling something amnesty even when it isn't um to try to you know score cheap political points so what's at stake from here for for for businesses for all of us?

26:31A lot of research has been done that this enforcement-only approach, this removal, say up to a million people a year, can cost the economy. It's a hit of$350 billion. It's about up to 3.5 % in terms of job and GDP. It can also translate up to 2.5 million job losses for American workers. The work that immigrants do and Americans do tend to be complementary. You know, immigrants are, say, like milking a dairy cow, while American workers are the former or the managers of the farm in a restaurant. The immigrants are the busboys or they're washing the dishes. And Americans prefer roles, you know, at the front of the house in terms of waitressing or hosting where they're the bartending, right?

27:25And so then when you remove that back of the house where there isn't sufficient labor in back of the house, that impacts the work of everyday Americans. And then the other thing is just inflationary and food prices. And, you know, we had a dairy farmer that in Wisconsin that talked to his neighbors about like, look, if they continue down this road, the cost of milk, are you willing to pay$30 a gallon? Or even worse, are we OK with milk not being domestically produced and having to be imported? So I think that those are some of the consequences that we might face. The pendulum on things like immigration tend to swing from one end to the other, you know.

28:13And certainly during the Biden administration, maybe the doors were open too much. Maybe the doors are closed too much now. Like, where do you feel like the pendulum is right now? I think it is one to the other way. And I think Americans, like the latest Gallup poll showing that Americans welcome immigrants or finding immigrants more favorable at 79 percent, which is the highest since the pandemic. since we called, you know, immigrant workers essential because they were, you know, when the rest of us could quarantine safely and they were still working and picking crops. So, yeah, I think it's the American attitude is definitely a reaction to the current more restrictive policies.

29:02And I think that bodes well, too, for solutions that does give, you know, some cover and support for particularly, you know, Republicans and the administration to move forward, especially if they want to keep power in 2026. And so you're not relying on the Democrats retaking power to be able to get these changes through? Well, in the last 20-some years, I've been at this. Democrats had full control of both chambers and the White House three times, and nothing was done. And, you know, same with Republicans, right? Like also Republicans have had their chance to get something done and we haven't.

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29:47And we see this president having just incredible influence over the Congress. And so I think employers will keep pushing. Well, Rebecca, this has been great. Thank you so much for doing it. Thanks for the conversation.

30:08Coming away from my conversation with Rebecca, I was struck by how simple she makes the issue of U.S. immigration sound. While administration after administration have struggled to make headway, Rebecca manages to channel an empathic perspective to find a common sense middle ground. I know that I've struggled personally about immigration. I don't believe in totally open borders, but I do think attracting talent from around the world is incredibly valuable to the U.S. economy. And I'd be lying if I said I wasn't deeply concerned by the raids and mass deportations. As business leaders, we pride ourselves on solving naughty challenges.

30:47To maintain a healthy U.S. workforce, we probably need to talk plainly about immigration, as Rebecca and her members are doing. When any topic is politicized, it can get messy. To avoid it, we need no-nonsense clarity. I'm Bob Safian. Thanks for listening.

31:11Meet Nicole Nicholas, Capital One business customer and co-owner of Ansett Uncles, a plant-based restaurant and community space in Brooklyn, New York, that got its start from a need for unity. The inspiration, it was born from the desire to create a space that felt like home, where we can connect community culture, good food, and come together with family and friends. That's how we birthed aunts and uncles. Nicole and her husband, Mike, were fulfilling their dream of bringing people together out of their home kitchen. But they soon learned that the demand for community was greater than they knew.

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32:17So, you know, it just gave us that runway to be able to breathe a little bit. Then you get to focus on the cooking of the food and making the experience great. To learn more, go to CapitalOne.com slash business cards. The business world moves fast and you don't have time to wait for your AI to turn into ROI. Because any business can use AI. The real breakthrough is how you use it. IBM helps you turn AI into more than potential. It helps you turn it into smarter ways of working and ultimately scaling. Let's create smarter business, IBM. Rapid Response is a Wait What original. I'm Bob Safian. Our executive producer is Eve Trow.

32:58Our producer is Alex Morris. Associate producer is Mashumaku Tonina. Mixing and mastering by Aaron Bastinelli. Our theme music is by Ryan Holiday. Our head of podcasts is Lital Malad. For more, visit rapidresponseshow.com. you

From the publisher

As the Trump Administration ramps up mass deportations, the American Business Immigration Coalition is advocating for policy reform. Rebecca Shi leads the organization made up of 1,400 current and former CEOs, trade group leaders and more, who heavily rely on an immigrant workforce. Hear how uncertainty over immigration has disrupted daily business and hit the bottom line, as well as the carve-outs and clarity that big employers like Lowe’s, Tyson Foods and others seek for the long-term.

Visit the Rapid Response website here: https://www.rapidresponseshow.com/

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

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