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Amazon is committed to creating 25,000 jobs that will earn at least $ 150,000 a year on average in New York and Virginia in expanding its east coast headquarters – but the big question is whether this Prosperity will be limited to people wearing Amazon badges.
The company's recent promise to pay all its workers at least $ 15 an hour does not apply to contractors who supply it with bathroom cleaners, landscapers and window cleaners. It will not cover the thousands of jobs in food services and retail expected due to Amazon's new outposts.
New York is tackling income inequality with a minimum wage of $ 15 an hour for all workers, paid sick leave and strong unions. But Virginia is a totally different ball game. It is a rule of law at work, which has always kept unions weak, and localities do not have the power to increase their minimum wage above the federal reference threshold of 7.25 dollars.
As a result, the agreement with Amazon could be much better in New York, which is expected to create 67,000 new "indirect" jobs – from construction workers to nurses, to accountants, cooks, bike mechanics – in Virginia, which expects the company to create demand for 22,000 workers beyond its own walls.
"This is an extremely one-sided agreement," says Tanya Goldman, Senior Policy Analyst at the Washington DC-based nonprofit think-tank Center for Law and Social Policy, which focuses on poverty reduction. "There are people who will receive $ 150,000 a year, but we will exacerbate racial disparities and economic inequalities. The instinct that all these jobs will not be good will be correct. "
Amazon's experience in Seattle may tell us what to expect in New York and Virginia, but it has also been heavily influenced by the city's role as a pioneer in the US in higher wages and labor standards.
The company said its presence in the city, where 45,000 people are currently working on its original campus, has generated 53,000 additional jobs by the end of 2017. between them is under construction, followed by retail, hospitality and health care. They have increased revenue for non-Amazon employees by about $ 17 billion and are encouraging their contractors to pay at least $ 15 an hour.
According to the Bureau of Labor Statistics, construction workers in the Seattle metropolitan area earn an average of $ 62,230 a year. Retail jobs bring in $ 50,560, technical jobs in the health sector, $ 94,420 and jobs in the health sector, $ 39,450. This is largely superior to the metropolitan area of Washington DC and slightly lower than that of New York, with the exception of jobs in the health sector, which pay much more in Seattle.
Seattle has raised the floor for the lowest-paid jobs through measures such as the $ 15 minimum wage for large employers, a Schedule Safety Act that gives workers more control over their hours of work one of the toughest prescriptions for paid sick leave in the country.
In addition, Seattle offers a favorable environment for unionization. Most large companies now outsource construction services, such as landscaping and security, which means these workers do not enjoy the benefits offered to white-collar workers in the company. But in Seattle, many of these entrepreneurs are unionized – including Amazon's janitors, whose contracts guarantee coverage for family health care and other protections.
"Regardless of the company in your hometown, you must continue to lobby for the minimum wage and the right to unionize," said city councilor Teresa Mosqueda.
So, what does this mean for new homes in the Amazon?
An Economic Impact Study prepared for the Virginia Economic Development Partnership – based on the initial scenario of 50,000 jobs – predicted that indirect jobs would have an average annual salary of $ 65,630. But that could mask the creation of very low-wage jobs, because even those counties that do not want to have the power to raise standards in the same way as Seattle or New York.
"I think it is outrageous that our minimum wage workforce can cross the border and earn twice as much," said Katie Cristol, Chair of Arlington County Council. It is also a fiscal problem: low wages require the government to take over. "As a community, we really struggled to fund enough safety net for people who work incredibly hard."
Amazon says it does not control the salaries offered by the companies it retains for tasks such as window cleaning and bathroom cleaning. But other technology companies to have minimum standards established for contractors. Microsoft, for example, requires its major suppliers that they offer 12 weeks of paid family leave. Facebook is asking its suppliers to pay employees at least $ 15 an hour and offer 15 days of paid leave.
The coalition against Virginia subsidies, which includes the local chapter of the Democratic Socialists of America, said lawmakers could put pressure on society to stop trying to thwart organizing in its stores. and Whole Foods Order Processing Centers.
"They could put workplace protections in place," says Roshan Abraham, executive committee member of Our Revolution Arlington. "The unionization is one of them. Even if they had just done it in Virginia at first, it would be a good signal for us.
The Arlington County Council still has to vote on the $ 23 million grant it's offered to Amazon, but that's not much of a leverage, and the county has shown no willingness to hold what he considers otherwise to be a very good deal for the region by imposing other requirements on Amazon.
On the technical side, the Virginia General Assembly would have more opportunities to impose conditions on the $ 22,000 subsidy per job offered to Amazon. But key committee leaders have already expressed support for the deal, and even the Democratic representatives in northern Virginia seem optimistic about this.
"The fact that the state generates about $ 3.2 billion in revenue once the incentives are paid is a hard argument to dismiss for the consideration of these incentives," said Senator Adam Ebbin, representative of Arlington neighborhoods that Amazon plans to occupy, as well as Alexandria to the south. "What I have to say is that the state package includes significant amounts for transportation in our district, which should help us in general. And this is a good thing.
Rather than meeting the requirements, local officials rely on pure supply and demand to support good jobs. Stephanie Landrum, president of the Alexandria Partnership for Economic Development, said that creating an environment that allows businesses to earn more money should be passed on to employees, especially in a region. where unemployment is already low.
"If you work in a restaurant and you only have one shift because the demand is not enough, if a company sends customers, you can have more," says Landrum. "All the extra activities should increase workers' wages."
For some opposition groups, the concern over Amazon's arrival stems more from fears that even slightly higher wages are failing to cope with the rising cost of labor. housing fueled by astronomical technology salaries – as well as a more comprehensive objection to Amazon's trade. practices.
"Their model relies entirely on the exploitation and destruction of small businesses," says Renata Pumarol, deputy director of New York Communities for Change, which is part of a coalition of unions and community groups. organizing against the subsidies granted to Amazon. "In a city that is already facing the worst accessibility crisis we've ever seen, what a company like this would do in New York would be absolutely devastating."
According to Pumarol, the best way to help Amazon would be to employ graduates from New York City University, which serves working class students in the city, rather than importing technicians into the city. schools of the Ivy League.
As part of its agreement with the state, Amazon is committed to providing $ 5 million for the education of the workforce and courses for neighboring residents, but has promised no commitment. Because of the way in which the agreement was reached, local politicians have few opportunities to impose additional requirements, leaving Pumarol on options.
"We are just not ready to say what we need from Amazon," she says. "We are just saying no to grants and no to Amazon coming to New York."
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