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Commentary: The immigration raids are crushing L.A.'s fire recovery and California's economy

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Commentary: The immigration raids are crushing L.A.'s fire recovery and California's economy

The crew had just poured a concrete foundation on a vacant lot in Altadena when I pulled up the other day. Two workers were loading equipment onto trucks and a third was hosing the fresh cement that will sit under a new house.

I asked how things were going, and if there were any problems finding enough workers because of ongoing immigration raids.

“Oh, yeah,” said one worker, shaking his head. “Everybody’s worried.”

The other said that when fresh concrete is poured on a job this big, you need a crew of 10 or more, but that’s been hard to come by.

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“We’re still working,” he said. “But as you can see, it’s just going very slowly.”

Eight months after thousands of homes were destroyed by wildfires, Altadena is still a ways off from any major rebuilding, and so is Pacific Palisades. But immigration raids have hammered the California economy, including the construction industry. And the U.S. Supreme Court’s ruling this week that green-lights racial profiling has raised new fears that “deportations will deplete the construction workforce,” as the UCLA Anderson Forecast warned us in March.

There was already a labor shortage in the construction industry, in which 25% to 40% of workers are immigrants, by various estimates. As deportations slow construction, and tariffs and trade wars make supplies scarcer and more expensive, the housing shortage becomes an even deeper crisis.

And it’s not just deportations that matter, but the threat of them, says Jerry Nickelsburg, senior economist at the Anderson Forecast. If undocumented people are afraid to show up to install drywall, Nickelsburg told me, it “means you finish homes much more slowly, and that means fewer people are employed.”

Now look, I’m no economist, but it seems to me that after President Trump promised the entire country we were headed for a “golden age” of American prosperity, it might not have been in his best interest to stifle the state with the largest economy in the nation.

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Especially when many national economic indicators aren’t exactly rosy, when we have not seen the promised decrease in the price of groceries and consumer goods, and when the labor statistics were so embarrassing he fired the head of the Bureau of Labor Statistics and replaced her with another one, only to see more grim jobs numbers a month later.

I had just one economics class in college, but I don’t recall a section on the value of deporting construction workers, car washers, elder-care workers, housekeepers, nannies, gardeners and other people whose only crime — unlike the violent offenders we were allegedly going to round up — is a desire to show up for work.

Now here, let me give you my email address. It’s steve.lopez@latimes.com.

And why am I telling you that?

Because I know from experience that some of you are frothing, foaming and itching to reach out and tell me that illegal means illegal.

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So go ahead and email me if you must, but here’s my response:

We’ve been living a lie for decades.

People come across the border because we want them to. We all but beg them to. And by we, I mean any number of industries — many of them led by conservatives and by Trump supporters — including agribusiness, and hospitality, and construction, and healthcare.

Why do you think so many employers avoid using the federal E-Verify system to weed out undocumented workers? Because they don’t want to admit that many of their employees are undocumented.

In Texas, Republican lawmakers can’t stop demonizing immigrants, and they can’t stop introducing bills by the dozens to mandate wider use of E-Verify. But the most recent one, like all the ones before it, just died.

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Why?

Because the tough talk is a lie and there’s no longer any shame in hypocrisy. It’s a climate of corruption in which no one has the integrity to admit what’s clear — that the Texas economy is propped up in part by an undocumented workforce.

At least in California, six Republican lawmakers all but begged Trump in June to ease up on the raids, which were affecting business on farms and construction sites and in restaurants and hotels. Please do some honest work on immigration reform instead, they pleaded, so we can fill our labor needs in a more practical and humane way.

Makes sense, but politically, it doesn’t play as well as TV ads recruiting ICE commandos to storm the streets and arrest tamale vendors, even as the barbarians who ransacked the Capitol and beat up cops enjoy their time as presidentially pardoned patriots.

Small businesses, restaurants and mom and pops are being particularly hard hit, says Maria Salinas, chief executive of the Los Angeles Area Chamber of Commerce. Those who survived the pandemic were then kneecapped again by the raids.

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With the Supreme Court ruling, Salinas told me, “I think there’s a lot of fear that this is going to come back harder than before.”

From a broader economic perspective, the mass deportations make no sense, especially when it’s clear that the vast majority of people targeted are not the violent criminals Trump keeps talking about.

Giovanni Peri, director of the UC Davis Global Migration Center, noted that we’re in the midst of a demographic transformation, much like that of Japan, which is dealing with the challenges of an aging population and restrictive immigration policies.

“We’ll lose almost a million working-age Americans every year in the next decade just because of aging,” Peri told me. “We will have a very large elderly population and that will demand a lot of services in … home healthcare [and other industries], but there will be fewer and fewer workers to do these types of jobs.”

Dowell Myers, a USC demographer, has been studying these trends for years.

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“The numbers are simple and easy to read,” Myers said. Each year, the worker-to-retiree ratio decreases, and it will continue to do so. This means we’re headed for a critical shortage of working people who pay into Social Security and Medicare even as the number of retirees balloons.

If we truly wanted to stop immigration, Myers said, we should “send all ICE workers to the border. But if you take people who have been here 10 and 20 years and uproot them, there’s an extreme social cost and also an economic cost.”

At the Pasadena Home Depot, where day laborers still gather despite the risk of raids, three men held out hope for work. Two of them told me they have legal status. “But there’s very little work,” said Gavino Dominguez.

The third one, who said he’s undocumented, left to circle the parking lot and offer his services to contractors.

Umberto Andrade, a general contractor, was loading concrete and other supplies into his truck. He told me he lost one fearful employee for a week, and another for two weeks. They came back because they’re desperate and need to pay their bills.

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“The housing shortage in California was already terrible before the fires, and now it’s 10 times worse,” said real estate agent Brock Harris, who represents a developer whose Altadena rebuilding project was temporarily slowed after a visit from ICE agents in June.

With building permits beginning to flow, Harris said, “for these guys to slow down or shut down job sites is more than infuriating. You’re going to see fewer people willing to start a project.”

Most people on a job site have legal status, Harris said, “but if shovels never hit the ground, the costs are being borne by everybody, and it’s slowing the rebuilding of L.A.”

Lots of bumps on the road to the golden age of prosperity.

steve.lopez@latimes.com

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How We Cover the White House Correspondents’ Dinner

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How We Cover the White House Correspondents’ Dinner

Times Insider explains who we are and what we do, and delivers behind-the-scenes insights into how our journalism comes together.

Politicians in Washington and the reporters who cover them have an often adversarial relationship.

But on the last Saturday in April, they gather for an irreverent celebration of press freedom and the First Amendment at the Washington Hilton Hotel: The White House Correspondents’ Association dinner.

Hosted by the association, an organization that helps ensure access for media outlets covering the presidency, the dinner attracts Hollywood stars; politicians from both parties; and representatives of more than 100 networks, newspapers, magazines and wire services.

While The Times will have two reporters in the ballroom covering the event, the company no longer buys seats at the party, said Richard W. Stevenson, the Washington bureau chief. The decision goes back almost two decades; the last dinner The Times attended as an organization was in 2007.

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“We made a judgment back then that the event had become too celebrity-focused and was undercutting our need to demonstrate to readers that we always seek to maintain a proper distance from the people we cover, many of whom attend as guests,” he said.

It’s a decision, he added, that “we have stuck by through both Republican and Democratic administrations, although we support the work of the White House Correspondents’ Association.”

Susan Wessling, The Times’s Standards editor, said the policy is a product of the organization’s desire to maintain editorial independence.

“We don’t want to leave readers with any questions about our independence and credibility by seeming to be overly friendly with people whose words and actions we need to report on,” she said.

The celebrity mentalist Oz Pearlman is headlining the evening, in lieu of the usual comedy set by the likes of Stephen Colbert and Hasan Minhaj, but all eyes will be on President Trump, who will make his first appearance at the dinner as president.

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Mr. Trump has boycotted the event since 2011, when he was the butt of punchlines delivered by President Barack Obama and the talk show host Seth Meyers mocking his hair, his reality TV show and his preoccupation with the “birther” movement.

Last month, though, Mr. Trump, who has a contentious relationship with the media, announced his intention to attend this year’s dinner, where he will speak to a room full of the same reporters he often derides as “enemies of the people.”

Times reporters will be there to document the highs, the lows and the reactions in the room. A reporter for the Styles desk has also been assigned to cover the robust roster of after-parties around Washington.

Some off-duty reporters from The Times will also be present at this late-night circuit, though everyone remains cognizant of their roles, said Patrick Healy, The Times’s assistant managing editor for Standards and Trust.

“If they’re reporting, there’s a notebook or recorder out as usual,” he said. “If they’re not, they’re pros who know they’re always identifiable as Times journalists.”

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For most of The Times’s reporters and editors, though, the evening will be experienced from home.

“The rest of us will be able to follow the coverage,” Mr. Stevenson said, “without having to don our tuxes or gowns.”

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MrBeast company sued over claims of sexual harassment, firing a new mom

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MrBeast company sued over claims of sexual harassment, firing a new mom

A former female staffer who worked for Beast Industries, the media venture behind the popular YouTube channel MrBeast, is suing the company, alleging she was sexually harassed and fired shortly after she returned from maternity leave.

The employee, Lorrayne Mavromatis, a Brazilian-born social media professional, alleges in a lawsuit she was subjected to sexual harassment by the company’s management and demoted after she complained about her treatment. She said she was urged to join a conference call while in labor and expected to work during her maternity leave in violation of the Family and Medical Leave Act, according to the federal complaint filed Wednesday in the U.S. District Court for the Eastern District of North Carolina.

“This clout-chasing complaint is built on deliberate misrepresentations and categorically false statements, and we have the receipts to prove it. There is extensive evidence — including Slack and WhatsApp messages, company documents, and witness testimony — that unequivocally refutes her claims. We will not submit to opportunistic lawyers looking to manufacture a payday from us,” Gaude Paez, a Beast Industries spokesperson, said in a statement.

Jimmy Donaldson, 27, began MrBeast as a teen gaming channel that soon exploded into a media company worth an estimated $5 billion, with 500 employees and 450 million subscribers who watch its games, stunts and giveaways.

Mavromatis, who was hired in 2022 as its head of Instagram, described a pervasive climate of discrimination and harassment, according to the lawsuit.

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In her complaint, she alleges the company’s former CEO James Warren made her meet him at his home for one-on-one meetings while he commented on her looks and dismissed her complaints about a male client’s unwanted advances, telling her “she should be honored that the client was hitting on her.”

When Mavromatis asked Warren why MrBeast, Donaldson, would not work with her, she was told that “she is a beautiful woman and her appearance had a certain sexual effect on Jimmy,” and, “Let’s just say that when you’re around and he goes to the restroom, he’s not actually using the restroom.”

Paez refuted the claim.

“That’s ridiculous. This is an allegation fabricated for the sole purpose of sparking headlines,” Paez said.

Mavromatis said she endured a slate of other indignities such as being told by Donaldson that she “would only participate in her video shoot if she brought him a beer.”

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“In this male-centric workplace, Plaintiff, one of the few women in a high-level role, was excluded from otherwise all-male meetings, demeaned in front of colleagues, harassed, and suffered from males be given preferential treatment in employment decisions,” states the complaint.

When Mavromatis raised a question during a staff meeting with her team, she said a male colleague told her to “shut up” or “stop talking.”

At MrBeast headquarters in Greenville, N.C., she said male executives mocked female contestants participating in BeastGames, “who complained they did not have access to feminine hygiene products and clean underwear while participating in the show.”

In November 2023, Mavromatis formally complained about “the sexually inappropriate encounters and harassment, and demeaning and hostile work environment she and other female employees had been living and experiencing working at MrBeast,” to the company’s then head of human resources, Sue Parisher, who is also Donaldson’s mother, according to the suit.

In her complaint, Mavromatis said Beast Industries did not have a method or process for employees to report such issues either anonymously or to a third party, rather employees were expected to follow the company’s handbook, “How to Succeed In MrBeast Production.”

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In it, employees were instructed that, “It’s okay for the boys to be childish,” “if talent wants to draw a dick on the white board in the video or do something stupid, let them” and “No does not mean no,” according to the complaint.

Mavromatis alleges that she was demoted and then fired.

Paez said that Mavromatis’s role was eliminated as part of a reorganization of an underperforming group within Beast Industries and that she was made aware of this.

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Heidi O’Neill, Formerly of Nike, Will Be New Lululemon’s New CEO

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Heidi O’Neill, Formerly of Nike, Will Be New Lululemon’s New CEO

Lululemon, the yoga pants and athletic clothing company, has hired a former executive from a rival, Nike, as its new chief executive.

Heidi O’Neill, who spent more than 25 years at Nike, will take the reins and join Lululemon’s board of directors on Sept. 8, the company announced on Wednesday.

The leadership change is happening during a tumultuous time for Lululemon, which had grown to $11 billion in revenue by persuading shoppers to ditch their jeans and slacks for stretchy leggings. But lately, sales have declined in North America amid intense competition and shifting fashion trends, with consumers favoring looser styles rather than the form-fitting silhouettes for which Lululemon is best known.

“As I step into the C.E.O. role in September, my job will be to build on that foundation — to accelerate product breakthroughs, deepen the brand’s cultural relevance, and unlock growth in markets around the world,” Ms. O’Neill, 61, said in a statement.

Lululemon, based in Vancouver, British Columbia, has also been entangled in a corporate power struggle over the company’s future. Its billionaire founder, Chip Wilson, has feuded with the board, nominated independent directors and criticized executives.

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Lululemon’s previous chief executive, Calvin McDonald, stepped down at the end of January as pressure mounted from Mr. Wilson and some investors. One activist investor, Elliott Investment Management, had pushed its own chief executive candidate, who was not selected.

The interim co-chiefs, Meghan Frank and André Maestrini, will lead the company until Ms. O’Neill’s arrival, when they are expected to return to other senior roles. The pair had outlined a plan to revive sales at Lululemon, promising to invest in stores, save more money and speed up product development.

“We start the year with a real plan, with real strategies,” Mr. Maestrini said in an interview this year. “We make sure decisions are made fast.”

Lululemon said last month that it would add Chip Bergh, the former chief executive of Levi Strauss, to its board to replace David Mussafer, the chairman of the private equity firm Advent International, whom Mr. Wilson had sought to remove.

Ms. O’Neill climbed the organizational chart at Nike for decades, working across divisions including consumer sports, product innovation and brand marketing, and was most recently its president of consumer, product and brand. She left Nike last year amid a shake-up of senior management that led to the elimination of her role.

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Analysts said Ms. O’Neill would be expected to find ways to energize Lululemon’s business and reset the company’s culture in order to improve performance.

“O’Neill is her own person who will come with an agenda of change,” said Neil Saunders, the managing director of GlobalData, a data analytics and consulting company. “The task ahead is a significant one, but it can be undertaken from a position of relative stability.”

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