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Newark’s Amazon Hub Canceled After Union and Local Groups Objects

Second, plans to significantly expand Amazon’s presence in the New York area were canceled after opposition from labor and community groups.

Amazon in 2019 plan suddenly canceled To build a second headquarters in New York after being hit by an arrow of unexpected criticism. This time, the e-commerce giant was unable to complete the contract for a cargo hub at Newark Liberty International Airport.

The project, which is premised on a 20-year lease worth hundreds of millions of dollars, has met with opposition after the Port Authority unveiled it last summer.

The Port Authority’s chief operating officer, Huntley Lawrence, said in a statement Thursday that “Unfortunately, the Port Authority and Amazon have not reached an agreement on the terms of the final lease and have mutually concluded that further negotiations will not resolve any outstanding issues.”

Relevant advocacy groups and unions say Amazon cannot support leasing unless the facility makes a series of concessions that include a labor contract and zero-emission benchmark.

“This win is a sign that if Amazon wants to continue growing in New Jersey, it must grow on our terms,” ​​said Sara Culliane, director of Make Road New Jersey, an advocacy group that questioned the deal.

Amazon, which expression of confidence “We are proud of our strong presence in New Jersey and look forward to continuing our investment in New York State,” he said, expressing his disappointment when announcing that the deal would close in May.

Amazon estimates the project will create more than 1,000 jobs, but many of those could still be created if the Port Authority leases it out to other companies. Two other companies bid on the project.

Chief Operating Officer, Mr. Lawrence added in his statement, “The growth of air freight and the redevelopment of airport facilities in a way that benefits the community and communities remains a top priority for the Port Authority.”

In the longer term, the larger impact could affect Amazon’s ability to efficiently ship packages in the Northeast served by it. airport hub Near Allentown, Pennsylvania; Hartford, Connecticut; and Baltimore. “Newark was an obvious choice,” said Marc Wulfraat, an industry consultant who closely tracks Amazon’s facilities. “It’s right in front of New York City.”

Wulfraat said Amazon could find other commercial airports in the area.

It was in part the company’s reputation in the state that fueled opposition to the project. The number of Amazon facilities in New Jersey increased from 1 to 49 between 2013 and 2020, according to a report by a group trying to block it, almost threefolding the number of warehouse workers in the state. Over the same period, that worker’s average wage fell from over $53,000 per year to around $44,000 per year, adjusted for inflation, according to Department of Labor data.

New Jersey is one of them. more allied countries Amazon opposed unionizing efforts at its facilities.

Amazon says the average starting salary for hourly workers is over $18 nationally. The median hourly wage in New Jersey is about $23 last year. The company also mentioned benefits including full health insurance as soon as full-time employees start working. 401(k) plan with 50% company match; and up to 20 weeks of paid parental leave.

Port Authority Unveils Lease Offer with Amazon August, the day the board voted to approve the transaction. Authorities said they expect the lease to take effect on or around November 1, according to the minutes of the meeting.

Kim Gaddy, executive director of the South Ward Environmental Alliance, which focuses on environmental issues affecting Newark residents, said: “They were trying to sneak in without informing the community. A spokesperson for the agency said a lack of transparency is standard in the competitive procurement process.

Under proposed dealAmazon has pledged to pay the Port Authority more than $300 million over 20 years, including an interim investment of $125 million to renovate two buildings at the airport and $150 million in upfront payments.

By September, a group led by Cullinane and Gaddy had begun to reconcile objections with unions and other advocacy groups such as Teamsters, Retail, Wholesale and Department Store Union. The group distributed petitions to collect thousands of signatures from residents and hold public events such as rallies and marches.

The project appeared to be delayed after the November lease completion schedule was passed without an announcement.

In late March, Governor Phil Murphy spokesperson said: praise at first The deal said in a statement, “The Governor encourages everyone doing business in our state to work in good faith with their labor partners.” (The branch office declined to comment on Thursday.) other politicians The state’s Amazon unions appear to have grown skeptical after winning an election this year at the Staten Island warehouse, and as a result Amazon is competing.

Amazon has opened up its Air Hub in recent years to ship its products through its own logistics network without relying on external suppliers. We prefer to fulfill customer orders with local stock for cheap and fast delivery, but we blow products to keep delivery promises if the products the customer wants are not in our nearby warehouse.

The surge in e-commerce sales led to over-expansion of operations during the pandemic. Chief Executive Officer Andy Jassy told investors in May that “Amazon has doubled the capacity it built in its first 25 years, in just 24 months.”

However, the company has admitted that it is building, expanding and hiring more than is required, and in April posting This is the first quarterly loss since 2015. This year, Amazon withdrew from some investments. “We’re trying to delay building activity on properties that don’t need capacity yet, and we’re going to have some leases expire as well,” said Jassy.

Newark’s Amazon Hub Canceled After Union and Local Groups Objects

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