Amazon will come – but what kind of jobs will it bring? | New

The vast majority of the 1,000 to 2,000 positions planned in the four-story distribution center that the Seattle company plans to open near Meadows Field will not yield much more than the minimum wage. And given Amazon's focus on improving efficiency, they will not be easy.

Now that county officials are negotiating potential tax incentives with Amazon as a means to promote as many jobs as possible, the question is to what extent the company's plans match Kern County's economic diversification strategy.

The consensus among local officials is that Amazon will provide much needed career opportunities for the type of low-skilled workers that Kern offers in abundance plus a reduced number of relatively well-paying jobs. They expect the company's new "distribution center" to help mitigate employment fluctuations in the region's primary industries, oil and agriculture.

Others see a less rosy side, noting that the company tends to push its employees hard while paying salaries that qualify some workers for food stamps and other forms of assistance. government. Amazon jobs are better than nothing, say the critics, but not much better.

Richard Gearhart, economist at Cal State Bakersfield, sees both sides. The facility that is expected to open in the next two years will help underemployees more than the unemployed because of Amazon's preference for people with recent work experience, he said. And because of low wages, he added, some workers will likely leave for better opportunities in the local oil fields.

According to him, the biggest advantage of Amazon is the recruitment factor of companies, while other employers are aware of it and are trying to gain a foothold in an already expanding distribution and warehousing industry. Kern County.

"I do not see (distribution work) really being a real engine of our economy, just by the nature (low-wage) jobs," Gearhart said. "But I see it as complementary to economic growth in other areas," he said, with employees spending on housing, food and other necessities.

All jobs at the proposed distribution center just north of Merle Haggard Drive will not be well paid. Marc Wulfraat, who oversees Amazon's distribution activities as president of the Canadian supply chain consulting firm MWPVL International Inc., said that about 1 in 20 jobs will be positions. well-paid executive managers requiring specialized skills.

But for the rest, he said, jobs will likely start at $ 12.18 an hour, with little opportunity for career advancement. On the other hand, the benefits will be relatively generous, he added.

Employee productivity will be closely monitored by professional storekeepers who know how to get workers to do their best, said Wulfraat. The standards will be rigid and the working environment difficult, he said.

"These jobs are what they are," he said. "If someone is an unqualified storekeeper, he would expect to earn about $ 27,000 a year."

"I would say it's good news for Bakersfield in general, but it's certainly not, you know, high-paying white-collar jobs, or even skilled jobs."

Amazon, which has not publicly acknowledged the plans of its local distribution center despite confirmation by local authorities and private sector officials, has contacted The Californian but has not responded to a request commentary for this story.

The company has recently been criticized for its employment practices. Vermont Senator Bernie Sanders presented a bill to Congress on Wednesday with the name of Amazon's founder, Jeff Bezos, as "Stop BEZOS" (Stop BEZOS). Based on accusations that the company does not pay a decent wage to all its employees, the bill would tax Amazon and other companies an equal amount to the government assistance that their companies receive. employees.

In addition to third-party criticism, the legislation could discourage the hiring of poor people without necessarily leading to higher wages, but Amazon has disputed Sanders' data. He stated that workers receiving government benefits usually choose to work part-time or do not work long with the company.

In an article on Sanders' blog, Amazon announced on August 29 that it has created more than 130,000 jobs over the past year. He indicated that his hourly wage for a full-time worker in his distribution centers, including cash, stock and incentive bonuses, was on average over $ 15 per hour, before hours. additional. The company said its full-time median pay – the salary that half of its US employees earn more and more – is $ 34,123 a year. He encouraged anyone "to compare our wages and benefits to other retailers".

Amazon has paid particular attention to a benefit covering 94% of employee training costs, up to $ 12,000, for skills-related courses, even if the company does not have them. need. 16,000 of its workers participated in the program.

Sanders' legislation reflects growing criticism of the company's compensation practices. In Ohio, where the company has expanded rapidly and employs more than 7,000 workers nationwide, the left-wing advocacy group Policy Matters Ohio has cited data indicating that August 2017.

Although some of these employees are probably working part-time, the group's research policy director, Zach Schiller, said that the fact that not all employees are reporting enough money to meet their needs speaks to A business as successful.

"I think it's pretty easy to see that the overall level of compensation is not enough," he added, adding that other major national retailers also a large share of workers benefiting from government assistance.

Robin Paggi, Bakersfield's training and workforce development specialist, said Amazon's online documents suggest that the company is not looking for people without a degree. or equivalent, which would exclude 27% of the Kern County workforce.

"It seems that the jobs in the Amazon fulfillment center will be better for those members of our community who have a high school diploma or a higher education degree and who are just earning $ 12 an hour," she wrote in an email.

Shafter has a number of very large distribution centers that employ several thousand people doing the same type of work as at Amazon. Scott Hurlbert, the city's chief executive, said the positions generally pay at least the minimum wage and they beat many jobs in agriculture and retail, partly because they offer low-skilled workers increased responsibilities. .

More importantly, because of Kern's relatively low housing costs, jobs make it possible for people to earn a living in the area.

"I do not think (the distribution job) is the long-term answer to focus strictly on … but I think it's a very important part of Kern's economic diversification strategy," said Hurlbert.

The organization most directly involved in diversifying the country's economy, Kern Economic Development Corp., sees distribution work as an excellent option for a region whose labor readiness is notoriously behind schedule.

Unskilled workers receive training as they go along, and unlike oil and agricultural careers, jobs are often stable and long-term, "said Melinda Brown, KEDC's Director of Business Development.

"They can still have a quality of life, although some people seem to think that these salaries are a bit low," she said. "But if you do not have a lot of skills, it's a good starting point."

Some positions in the proposed distribution center will be well paid by almost all standards. Local job recruiter Laura Hill said the facility would employ a human resources manager earning $ 80,000 a year or more, as well as two junior human resources employees earning up to $ 20 per year. time. There will also be up to three people working in the field of information technology who will bring in $ 75,000 or more, she added.

"The pay range can be very low, if not very high, depending on the worker's qualifications," said the owner of Pinnacle Recruitment Services, a Bakersfield company.

County Supervisor Mick Gleason, whose District 1 includes the proposed Amazon site, said Kern must seize opportunities for economic diversification as they arise. "We are trying to diversify as best we can," he said.

Although he said he was not involved in the county's negotiations with Amazon on potential incentives to create jobs, he said the goal was to make the best use of the Kern's resources while contributing "the best possible to (Amazon's) success."

Kern's senior officials will not discuss discussions about current incentives or even plans from Amazon, said county spokeswoman Megan Person, because the company had asked them not to do it.

Supervisor Mike Maggard, who represented the area around Meadows Field but now represents District 3, sees a net benefit in Amazon's plans – and a good use of the county's incentive tools.

He noted that even though the distribution center only provided 1,000 paying jobs $ 30,000 a year, this represents $ 30 million a year for Kern's economy.

"I think this is perfectly suited to our workforce that has proven to be able and willing to work," he said. "I think it will work very well."