Amazon Hub in Newark is canceled after the subject of unions and local groups
The e-commerce giant planned to build an airport cargo center, hire 1,000 workers and invest hundreds of millions of dollars on 20 years.
< p class="css-at9mc1 evys1bk0">For the second time, Amazon's plans to significantly expand its presence in the New York area were scrapped after labor groups and community rallied in opposition.In 2019, Amazon abruptly canceled plans to build a second headquarters in New York after facing a deluge of criticism he had not anticipated. This time, the e-commerce giant was unable to strike a deal for a cargo hub at Newark Liberty International Airport.
The The project, which was based on a 20-year lease worth hundreds of millions of dollars, sparked opposition after the Port Authority revealed it last summer.
"Unfortunately, the Port Authority and Amazon were unable to reach an agreement on the terms of the lease and mutually concluded that further negotiations would not resolve the outstanding issues", Port Authority chief operating officer Huntley Lawrence said in a statement Thursday.
Advocacy groups and unions involved had said they could not not support the lease unless Amazon makes a concessions package that includes labor agreements and a zero-emissions baseline in the facility.
"This win signals that if Amazon is to continue to grow in New Jersey, it's going to have to do it on our terms," said Sara Cullinane, director of Make the Road New Jersey, an advocacy group that had questioned the deal.
Amazon, which expressed confidence in May that the deal would go through, expressed his disappointment in a statement, adding that "we are proud of our strong presence in New Jersey and look forward to continued investment in the state."
Amazon had estimated that the project would create more than 1,000 jobs, although many of those jobs could still be created if the Port Authority awards the lease to another company. Two other companies have bid on the project.
" The growth of air cargo and the redevelopment of airport facilities in a way that benefits the region as well as the local community remain a top priority for the Port Authority,” COO Mr. Lawrence added in his statement.
The long-term impact the most important might be on Amazon's ability to deliver packages efficiently in the Northeast, which it serves with airport hubs near Allentown, Pennsylvania; Hartford, Connecticut; and Baltimore." Newark was the obvious choice. "said Marc Wulfraat, an industry consultant who follows Amazon's facilities closely. "It's right there, on the doorstep of New York." "> Mr. Wulfraat said that Amazon could research other commercial airports in the region, even if their locations were less than ideal. x, to support the growing volume of packages.
It was partly the company's prominence in the state that drew opposition to the project . A report produced by groups seeking to block it pointed out that the number of Amazon facilities in New Jersey grew to 49 between 2013 and 2020, helping to nearly triple the number of warehouse workers in the state. , to about 70,000. Over the same period, the average salary of these workers fell to about $44,000 a year, from more than $53,000 a year, when adjusting for inflation, according to data from the Department of Labor.
New Jersey is one of
The e-commerce giant planned to build an airport cargo center, hire 1,000 workers and invest hundreds of millions of dollars on 20 years.
< p class="css-at9mc1 evys1bk0">For the second time, Amazon's plans to significantly expand its presence in the New York area were scrapped after labor groups and community rallied in opposition.In 2019, Amazon abruptly canceled plans to build a second headquarters in New York after facing a deluge of criticism he had not anticipated. This time, the e-commerce giant was unable to strike a deal for a cargo hub at Newark Liberty International Airport.
The The project, which was based on a 20-year lease worth hundreds of millions of dollars, sparked opposition after the Port Authority revealed it last summer.
"Unfortunately, the Port Authority and Amazon were unable to reach an agreement on the terms of the lease and mutually concluded that further negotiations would not resolve the outstanding issues", Port Authority chief operating officer Huntley Lawrence said in a statement Thursday.
Advocacy groups and unions involved had said they could not not support the lease unless Amazon makes a concessions package that includes labor agreements and a zero-emissions baseline in the facility.
"This win signals that if Amazon is to continue to grow in New Jersey, it's going to have to do it on our terms," said Sara Cullinane, director of Make the Road New Jersey, an advocacy group that had questioned the deal.
Amazon, which expressed confidence in May that the deal would go through, expressed his disappointment in a statement, adding that "we are proud of our strong presence in New Jersey and look forward to continued investment in the state."
Amazon had estimated that the project would create more than 1,000 jobs, although many of those jobs could still be created if the Port Authority awards the lease to another company. Two other companies have bid on the project.
" The growth of air cargo and the redevelopment of airport facilities in a way that benefits the region as well as the local community remain a top priority for the Port Authority,” COO Mr. Lawrence added in his statement.
The long-term impact the most important might be on Amazon's ability to deliver packages efficiently in the Northeast, which it serves with airport hubs near Allentown, Pennsylvania; Hartford, Connecticut; and Baltimore." Newark was the obvious choice. "said Marc Wulfraat, an industry consultant who follows Amazon's facilities closely. "It's right there, on the doorstep of New York." "> Mr. Wulfraat said that Amazon could research other commercial airports in the region, even if their locations were less than ideal. x, to support the growing volume of packages.
It was partly the company's prominence in the state that drew opposition to the project . A report produced by groups seeking to block it pointed out that the number of Amazon facilities in New Jersey grew to 49 between 2013 and 2020, helping to nearly triple the number of warehouse workers in the state. , to about 70,000. Over the same period, the average salary of these workers fell to about $44,000 a year, from more than $53,000 a year, when adjusting for inflation, according to data from the Department of Labor.
New Jersey is one of
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