Steve Ringoff is a freelance journalist. See more of his work here.
City of Turlock officials were about ready to polish the ceremonial groundbreaking shovels before it was publicly revealed that Amazon planned a 1,000,000 plus square foot warehouse facility in their southern Stanislaus County municipality.
In an article April 21, bearing the bylines of Modesto Bee reporters Kevin Valine, Marijke Rowland, and Kristen Lam, that team put together enough pieces of the puzzle to make it near certain Amazon was behind the development project.
However, Amazon’s stealth invasion of Turlock brings with it jobs which may pay less than a living wage and a work environment which injures its workers at what some say is twice the rate for the industry. That’s what this article is about.
Too late to do anything? Probably. Should it be? That is the question.
Public officials signed non-disclosure agreements! It appears that the stealthy plan Amazon uses has companies other than Amazon buy the parcels of land, get the necessary permits, build the warehouse, then lease it to Amazon.
Companies whose names are associated with Amazon (QR AMZ Inc.) appear on documents submitted to Turlock for the development, which brought together parcels at Fulkurth Road and Fransil Lane near the Dust Bowl Brewery, just west of Highway 99. Various permits have been applied for and/or issued, including a grading permit.
With a, “heads up,” could someone challenge this project? Should it be exempt from an environmental impact report given the likely traffic in an industrial area designated for “agricultural products and related processes and services? (Westside Industrial Specific Plan description by City of Turlock)
But wait, you say, even the Bee didn’t say for certain that it was Amazon that was coming to town. Nonetheless, Valine and company pretty well nailed it. Amazon really didn’t deny it, then said nothing had been signed. Handshakes all around?
That brings up the first question, which might have been raised before the Turlock City Council if it was widely known that Amazon was coming to town.
The question could have been posed thusly: “Does Turlock want or need about 1,000 people making what is very likely not a living wage”?
We’re aware that “a living wage” is not uniformly defined. Under some definitions, a pay scale might support a single person but would not support a couple in which only one party is employed. And, of course, having a child, single or married, blows out the chart completely.
First, Amazon pays $15.75 to $21 an hour. California’s minimum wage for a concern with more than 26 employees is $14 per hour. Thus, Amazon’s starting pay is above minimum wage by less than $75 a week. Assuming a 2080-hour work year, the salary range is $32,760 to $43,680. Both figures are before taxes. According to a “living wage calculator” produced for California, a SINGLE PERSON must make $18.66 an hour, or $38,823 annually to earn a “living wage.”
If married with one party unemployed outside the home, the breadwinner must earn $30.26 an hour, or $62, 940 annually to cover anticipated expenses.
I couldn’t find a source which could tell me how the numbers break down between starting pay and the top level. But, usually, the wage distribution is pyramidal with many more workers on the base than on the peak.
Another way to look at the wage needed is to look at the ability to find housing. Using the online mortgage calculator of the website NerdWallet, we asked what monthly income would be required to buy a house for $200,000 with $20,000 down on a 30-year mortgage at 4.6 percent.
Yeah, depending on income and credit rating, you can get a better rate than 4.6, but this hypothetical was for a $200,000 house. Anything costing $200,000 in Turlock won’t be called home until you take the wheels out from under it.
Bottom line, NerdWallet recommends you have an annual income of $50,952 ($4,246 a month) to buy the $200,000 house. NerdWallet notes you may find a lender who would finance this hypothetical if your annual income is $46,020 ($3,855 per month). So, the highest earner might be able to stretch into this hypothetical home by cutting other expenses.
The problem is that the average home price in Turlock is well over $300,000 and the average rental goes for a tick above $1,300 per month.
Hi, mom and dad, still have that spare room?
Another issue which might have been raised is the allegation that Amazon warehouse workers are more frequently injured than other warehouse workers. The warehousing industry has an injury rate of about four in 100. On average, Amazon has a rate of more than 8 in 100.
Reveal, the online product of The Center for Investigative Reporting, on September 29, 2020, put out a 38-page report entitled “How Amazon Hid Its Safety Crisis.” The report details injury rates based on internal Amazon documents and claims Amazon has, “engaged in an unapologetic public relations campaign.”
Ending its introductory section, the article says:
“With data from 2016 through 2019 from more than 150 Amazon warehouses, the records definitively expose the brutal costs to workers of Amazon’s vast shipping empire—and the bald misrepresentation the company has deployed to hide its growing safety crisis.”
So, if true, the injury rate has risen steadily through 2019 until it hit a rate about twice that of the injury standard. However, that rate is spread over the more than 150 warehouses. Individual workplaces have shown injury rates 5 times the industry standard (22 per 100 workers).
While we won’t know for some time just how “robotic” this new facility will be, we can consider some experiences Amazon workers have had in this setting,
The report talks about Cecilia Hoyos, who has been at the DuPont, Washington, plant for nine years. She supports two children and a year-and-a-half-old granddaughter with her $17.90 hourly wage. She turned 56 last year.
Since she began working there, the pace at which she is required to work has increased, with quotas going higher and higher. She is supposed to scan a certain number of items per hour; if she doesn’t hit her target she can be fired.
Then came the robots. Their installation was supposed to save workers from the fatigue of walking miles every day to find customer orders. She now stands in one place and grabs things from a cart brought to her by a robot. She must “pick” the right item from the cart, lift it and move it along.
“We thought it was so cool,” she told Reveal. But standing in one spot for 10 hours a day doing repetitive motions proved much harder on her body, according to the report.
And, the robots were too efficient. Productivity expectations more than doubled, then kept climbing until the number of scans expected rose from 100 to 400 per hour. This was not without its consequences to the workers.
The injury rate for robotic fulfillment centers was 150 percent of the non -robotic facilities by 2019. One physician who inspected Amazon warehouses in her capacity as a medical officer for OSHA said, “If you’ve got robots that are moving products faster and workers have to then lift or move these products faster, there’ll be increased injuries.”
If you are curious about the injury rate for various facilities, you can review the rates for 150 fulfillment centers here. Tracy showed a 2019 rate of 15.7 and Stockton was at 6.8, for example.
Amazon has responded to the Reveal articles saying it did not hide the injury rate, but the statistics themselves are misleading. Amazon states that some injuries rose to a level of a serious injury because of the time a worker was away from the job. Thus, the serious injury rate was affected because the company was, “more generous in granting recuperation time.”
One Amazon spokesperson has said, “Ensuring the safety of associates in our building is number one priority and we invest heavily in safety.”
Well, maybe Turlock officials know what’s best and don’t need any public input or rear view looks at gift horses. Then again, maybe not.
(Full disclosure: the author is an Amazon Prime member who buys all kinds of stuff from Amazon, unable to fully understand the difference between want and need)
Amazon isn’t paying the workers a fair wage or its fair share of taxes.
it’s added traffic to the area TAKES away from our community to enrich only the owner and fills the area with pollution and the underpaid working poor. Someone should chain the gate shut every night.
you left wing folks are interesting. Without any regard to product pricing, you assume that if you pay all the workers $60k each, that the products produced will be priced competitively. well, that is not what will really happen in this economy. If you don’t want all those workers working, then be sure to set aside a few warehouses for the homeless. And, be sure to raise taxes above 100% to cover the cost. The $15 Mininmum wage law has done nothing for workers- other than reduce workers- automation will eventulaly usurp all low wage workers, so these folks better learn to do it better. Or, if you pay these Amazon workers $30.00 per hour, then for each item they ship to you, be sure you sign up to pay the extra $25.00 handling fee to purchase your $10.00 item.
Good point and this is a common talking point by pro-corporate interests. It’s compelling and may be relevant for smaller, independent businesses. But, when it comes to mega-corps like Amazon, this argument ignores the demonstrable reality that these companies have reaped tremendous profits from paying sub-living wages (which is a hidden govt subsidy), while contributing less and less to federal revenues (see my post for the numbers). Where is all that extra money going? Corporate level executive pay has risen over 1000% in the last few decades while the middle class has all but disappeared. History tells us that such income inequality is bad for our economy and our democracy. The argument that corporations will *have to* to simply raise prices to cover higher labor costs is a strawman argument…they could also decide to pay living wages and reap the benefits of a loyal workforce and more stable economy.
Noah, my reply below was not meant for you.
I know, We have heard these identical talking points regurgitated over and over by far too many…
How about, then, if people who think this way, commit to earning less and charging less for their products. Starting with reducing the cost charged for rentals, or houses, so those who are not paid the debatable “living wage” can be stable, too. If, in reality, a ‘living wage’, the single wage earner, living alone, inside a house, not a car or the woods, should be able to be as safe and secure as everyone else, without having to depend on Social Services handouts. This way taxpayers can no longer throw it up in the faces of others that they foot part of the bill.
I am disappointed in pat answers, as if none of us have done the math, yet, were still were able to come up with better solutions. We do not have to accept the same old greedy answers.
Is it true that in order for capitalism to work, as it does, at least 11% of the population has to be unemployed, at all times? If so, then taxpayers pay their share to keep capitalism running on schedule.
Perhaps, homeless people make up the brunt of capitalisms downside. Are they sacrificing so that others can live the American dream? We certainly hope not, If there is any truth to that formula then we ought to spread the wealth. Take turns…
Have you told Jeff Bezos what you think about his business practices?
By the way I am not left wing, but, I do critically think, and do not take my cues from any wings. Try it you may like it…
In good faith, We need to speak truth to one another out of Love…
“Public officials signed non-disclosure agreements!” What public officials? Isn’t there something wrong with this? Any Brown Act violations here?
No Brown Act violation has happened . The Brown Act applies to decisions made by the Turlock City Council. The warehouse. Cannot be built without a public hearing and a vote at a public meeting.
The purpose of a non-disclosure agreement is to enable the company to buy land in private so that competitors won’t scoop up the land out from under Amazon. Before Amazon decide on Turlock, their individual representatives asked Council members individually whether they were inclined to approve the project. Had Council members said no, Amazon would not have bought the land.
Those of you living in Turlock need to make sure there are no giveaways by your City Council.
I remember when Amazon came to Patterson. It was being unbelievably hyped. The claim by its proponents stated the warehouse would bring 1,000 to 1,500 jobs. There are only 350 full time jobs at this massive facility. All you have to do is look at the employee parking lot which is tiny compared to the facility overall, Warehouses are vastly overrated. They have the worst jobs per acres numbers and require a lot of land. They provide little to none ancillary jobs, And most of the jobs are around minimum wage. Some other regions put moratoriums on distribution centers for that very reason. When we settle for turning our land into giant storage bins for other areas, we are in trouble.
Can you contact me please at [email protected]. I want to work up the Patterson experience with Amazon so far and you seem to have some insight in that regard.
Steve Ringhoff
I know it’s very complicated, but in the end, companies that pay low wages that force workers to receive various public benefits/assistance to afford rent are basically subsidized by tax payers. On top of that, corporation like Amazon saw their corporate tax rate go from 35% to 21% recently. In 1952 corporate taxes made up 32% of federal tax revenue. By 2019, that number had dropped to 6.6%. This Amazon facility is an exploitation of our lower wages in the valley…not the blessing it may appear to be on the surface (these numbers from Jennifer Rubin’s column in the Washington Post this week)
Good reporting.
Amazon has not been a good corporate citizen. I have avoided purchases from the company since it’s inception.. Buying via internet hurts local business.
Stanislaus County is so desperate for jobs that any company hiring is welcomed. While Amazon does not pay a living wage, it does pay enough to enable a family with more than one worker to survive. Thus, it is better than nothing.
If this County discourages the company, they will choose another that is just as desperate for jobs.
The loss of farm land is not desirable. Increased traffic and pollution is the economic development model in our community. Electric vehicles may be our eventual salvation.
Amazon will be a mixed benefit. As long as the company is allowed to walk all over employees and local governments, expectations should remain low.
Non-disclosure agreements already tips us off. Thay come bearing gifts or so they say. We are all left to our imaginations. Maybe it is this, or perhaps it will be this other. Shhh, it is not for us to know. After all, who are we? We are those who refuse to be patsys.
Make no excuses for any city council. We the people must demand that we be let in on the details, ahead of the decisions being made, otherwise, all votes are off. We are those who vote them in, not so they can walk all over us, anymore than, we are those who agree that ANY company, Amazon or not, has the right to dictate the terms to OUR local government, to OUR local citizens, or to their employees. Frankly, I do not understand the ease to which we allow our cities’ or districts’ representatives to have been voted into office in the first place.
It has to be more than political party. It has to be more about asking the hard questions and eliciting the right answers. Politicians are trained not to really answer our questions. So many of us are too soft on the candidates, cuz we have a good ‘feeling’ about her or him. We are not placing $2 bets on race horse, that has a single race to run. We NEED to apply critical thinking, or learn to critically think, then hold meetings to brain storm on the crucial questions we NEED legitimate answers to ahead of time. This way we will be prepared with a list of questions to ask candidates, and we will know which candidate(s) have done their own homework without being fed the questions ahead of time. We NEED to stop finding ourselves surprised by what we get. Know candidates before ever casting a vote. Know what their apt to do in the crunches. STOP pinning our hopes on candidates who do not have a clue what they themselves are likely to do, especially when pressure mounts.
Talk of NOT ‘stepping’ on employees or governments IS very necessary, AND, lets talk about NOT being stepped on ourselves. It is NOT news that politicians are known to use their offices as ‘stepping’ stones to other goals.
Living wage for a single employee, even in this neck of the woods, may afford the ability to live home with parents and chipping in more or less. Seldom are jobs full-time. Perhaps living wage may afford the ability to live in a vehicle while homeless. Few affordable options exist with modern cost of living adjustments (COLA).
‘Affordable’ is a term we all need to hash out, in order to reach concensus on a correct definition, so we all know what each other means while talking about an issue. All this repetitive talk about ‘affordable housing’ typically amounts to ‘unaffordable’ for low income levels. Other than, perhaps, a limited few units sacrificed/reserved for lower incomes, the bulk of the affordable housing units are reserved for those who could afford to live elsewhere. But why would they live elsewhere, when they can move into a brand new high-rise unit, with all the modern amenities, likely nearer to work.
This is not off the subject, since rates of pay for employees, of companies who eat up our scarce land, so people like Jeff Bezos can get rich(er), are found to be insufficient, especially with the price of existing housing rising, unnecessarily, since most existent housing is deteriorating.
If Stanislaus county’s cities have land to spare, I vote that we share land with OUR homeless, where they will not consistently be moved off the land. I know all sorts of negative thoughts are rushing through OUR heads, YET, We NEED to refuse to accept that there is no way to make this work for everyone, it has long been time for US to come up with all sorts of positive thoughts to make it happen.
We have allowed the powers, that be, to dictate to US how it is going to be.
We, Valley Citizens, NEED to commit to being HEARD and NOT allowing ANYONE’S voice to be excluded. Currently, We should be listening to the cries of EVERYONE who cannot AFFORD or FIND housing. It does not have to be this way, period
Thank you, for your ears, thoughts, and committments…
My question to your comments is how many of you refuse to purchase products from Amazon? It does appear that at least one of you does not buy products through Amazon. The particular parcel that this warehouse will be located on is in Turlock’s Industrial Park, and a warehouse is an industrial use. It is located near the new Fulkerth Road Highway interchange so the increased traffic should not be a problem. Electric vehicles including semi-trucks are on the way so pollution will not be a problem in the future. Amazon has been a leader in the installation of solar power so this warehouse maybe self-sustainable. This warehouse will not use large quantities of water like some of the other industries in our industrial park do, potable water in Turlock will be a problem Turlock will face in the future. The wages aren’t great but that can be remedied by building more condos and apartment complexes. Best of all Amazon will not have any problem filling their employee positions here in the Turlock area by our local citizens and close neighbors.
THERE IT IS. “The wages aren’t great but that can be remedied by building more condos and apartment complexes”.
Can low wage employees afford condos?
Are government representatives willing to trim down the regulations that prevent housing from being built, speedily and cost effectively? Lets say government will commit to that, especially under political pressure from citizens not willing to take “No” for an answer, how quick can this “affordable to low wage earners housing” be ready for occupancy? There is no doubt it is time to trim down the obstacles.
No one is begrudging Turlock for bringing jobs to its community. Congrats, really!
It does raise the question: how much any community plans ahead, enough, to actually have things in order and ready to set into motion that which will need a quicker remedy. Housing being a hot button issue for any community who already has visible unhoused populations, has Amazon been invited to be a part of the solution, since they will be making alot of profits. Good press! A portion of profit could be spent locally rather than all spent outside the community? Typically corporations put their feelers out to obtain the best bid for their own self interest and communities cave, understandably, but not necessariy or wise…
Apologies Turlock, you just happen to be a topic of deeper reflection, as is Amazon, and, afterall, we do not know what kind of benefits you may have shrewdly gained.
A solution to most of the problems described in the other posts is to have Amazon create a “company town,” in the style of mining towns in the 19th and 20th centuries. It can provide housing for its employees and their families, schools for their children, and medical facilities, and the company store can accommodate any of their material needs. That way we tax payers won’t be on the hook for the costs of letting a giant corporation locate in our cities and towns. Oh, wait … that don’t work so well in the 19th and 20th centuries, did it?
President Biden is calling for corporations to pay their fair share. We need to urge our Congressmen and women to stand up with him. And we also need to make sure there is a full Environment Impact Report on this any any project proposed for our County.
By the way, how many MORE trucks do we want traveling with us on Highway 99? I’ve commuted on 99 in the past, and it was a nightmare.
Hi Anita, I only wanted to offer some background info on Environmental Impact Reports.
This property is located within the City’s ‘sphere of influence’, General Plan, and Westside Industrial plan (not sure what it is called). Each layer of “planning” typically includes a required environmental review. For General Plans and Specific or Master Plans, there is usually a broader environmental study conducted with assumptions about types of land use and their associated impacts.
That all said, it is very likely to be a level of environmental review based upon the specific Amazon ‘development application”, which has not yet been submitted (as noted in the article).
As others have noted, this facility if opened will likely have less water/sewer usage (good for everyone), but a distribution center usually generates more traffic than a typical warehouse, but it would be located a stone’s throw from 99 and is on the western edge of town so likely less disruption for city residents (at least no more than the dozens of delivery vans we see everyday).
When WalMart was built, similar complaints about hours, noise, traffic, and employee wages were offered.
This conceptual plan is a long way from crossing the finish line. I’m hopeful Amazon will be of some benefit to Turlock.
I believe the environmental review was bypassed through a negative declaration filed by the City. I don’t think there will be any public hearing on this project. A grading permit has already been issued and dirt is being moved. No stopping it now.
Hi Steve, a Neg Dec is not a bypass of environmental review. There have been layers of environmental review (CEQA). The General Plan and the specific plan for the west industrial both underwent environmental review. The process allows for projects consistent with those plans to skip ADDITIONAL review in those areas and only review project specific impacts beyond the scope of the GP or WISP (or whatever they’re calling this area).
Hi Anita, I only wanted to offer some background info on Environmental Impact Reports.
This property is located within the City’s ‘sphere of influence’, General Plan, and Westside Industrial plan (not sure what it is called). Each layer of “planning” typically includes a required environmental review. For General Plans and Specific or Master Plans, there is usually a broader environmental study conducted with assumptions about types of land use and their associated impacts.
That all said, it is very likely to be a level of environmental review based upon the specific Amazon ‘development application”, which has not yet been submitted (as noted in the article).
As others have noted, this facility if opened will likely have less water/sewer usage (good for everyone), but a distribution center usually generates more traffic than a typical warehouse, but it would be located a stone’s throw from 99 and is on the western edge of town so likely less disruption for city residents (at least no more than the dozens of delivery vans we see everyday).
When WalMart was built, similar complaints about hours, noise, traffic, and employee wages were offered.
This conceptual plan is a long way from crossing the finish line. I’m hopeful Amazon will be of some benefit to Turlock.