reporter: fredrick taylor, the only pacific steel employee who would talk to cbs 5 on camera about why the staff is dwindling by the week. >> -- i'd say maybe as many as 20. reporter: 20 per week? >> yes, sir. reporter: they all have spanish surnames. >> i know that all of a sudden we were told that homeland security was doing an audit and that was it. reporter: homeland security is the new name for immigration and customs enforcement. a spokeswoman tells cbs 5 by phone the department never verified if an audit for undocumented workers is actively under way. but this notice of inspection dated february 17th tells a different story. homeland security was coming in to pacific steel to review their i-9 form. >> same thing as they were raiding and arresting people, right? reporter: ignaco is with the union representing pacific steel workers. he says the union tried to legally stop the audit, but by october homeland security had identified 200 pacific steel employees allegedly working in this country illegally. >> a couple hundred people would lose their jobs, period, and they would be gone