Online retail giant Amazon has abandoned warehouse plan in San Diego, as the California city considers workers protection law. The proposed legislation would require firms to pay workers more, and also offer them greater protections.
The Working Families Ordinance
The law, as reported by Motherboard, is known as the Working Families Ordinance, and will force employers operating in San Diego-owned land to pay the prevailing wage-which has been based on union wages. Also required will be 56 hours of annual sick leave for all workers.
Amazon spokesperson Maria Boschetti has confirmed that the company has given up on the deal, without specifying any reason for the same. In her statement, she has said that while the firm won’t continue with its warehouse plans at El Cajon, they will continue to “assess opportunities to invest” in the area.
She has also added that Amazon appreciates the “time and attention” that the City of San Diego, along with the community leaders, have put into the deal. Finally, she has mentioned how Amazon’s “dynamic business” is always on the lookout for new locations, while weighing a number of factors to decide upon future sites.
Lost Over 400 Great Jobs
Nevertheless, a recent letter to the community by Chestnut Properties, which had been responsible for developing the warehouse at El Cajon, has claimed that the reason why Amazon decided to step back from the project was the proposed Working Families Ordinance.
The letter reads that the mere mention of the Ordinance has cost the developer “over 400 great jobs at the Weld Property (the site where the warehouse was to be set up).” Further, the firm says that they believe that the that proposal is “irresponsible,” because all business have been put “on notice” that a major change is on its way, along with new wage costs.
Reluctant to Give In to Unions
This comes as the latest in Amazon’s efforts to steer clear of having to deal with any unions or raising employees’ wages. Moreover, the company is already rather notorious for ignoring requests by communities for having a greater say in the way the company functions.
Earlier this year, the company had also openly campaigned against union drives at its warehouses at Staten Island, New York City and Bessemer, Alabama. And that’s not all, as the company has also proceeded to step back from its warehousing deals at locations where it didn’t get desirable tax breaks.