A proposal to lease two buildings at Newark Airport to Amazon for a 250,000-square-foot global air cargo campus was criticized in a report that charged the plan will hurt minority communities, take away high-paying union jobs and that it was done at the last minute without a chance for public comment.
Since the Aug. 5 approval of the lease, some workers who could be displaced have asked the Port Authority what will happen to their jobs.
A report by a group dubbed “Hedgeclippers” charged that Port Authority officials “fast tracked” the lease by adding it to the Aug. 5 meeting agenda at the last minute, which didn’t give the public a chance to review or comment on the proposal.
“This deal would hurt New Jersey communities by displacing union jobs, exacerbating environmental injustice, and further burdening the working-class Black and Latinx communities that surround Newark Airport,” the HedgeClippers report said. “More broadly, this deal would solidify Amazon’s growing dominance on the East Coast, and presence across the country, just as Congress is debating ways to reign in Amazon’s monopoly power.”
The report called on the Port Authority to delay signing a lease by November until it can provide an opportunity for the public to comment on the lease and its effects.
“The August 5th meeting provided zero opportunities for debate or public comment on the Amazon Newark airport deal,” the report said. “Earlier that day the Committee on Operations gave an overview of the Amazon proposal, but advanced the deal to the full board for approval, again without discussion, objections, or public input.”
Port Authority officials refuted the report at a Thursday board meeting saying the procurement for the lease was done publicly. They went as far as asking the agency’s lawyer to rule whether the open public meetings act had been violated. He replied it had not.
The agreement would bring 1,000 jobs to Newark Airport under a 20-year lease of two buildings on the airport’s north side for a regional air cargo hub. Under the lease, Amazon would spend $125 million to redevelop two 1990s vintage buildings into a new 250,000-square-foot air cargo campus. The facility, which could open during the first quarter of 2023, is expected to employ people primarily from communities surrounding the airport.
Community groups that have opposed the lease include Make the Road NJ, Clean Water Action, South Ward Environmental Alliance, Ironbound Community Corporation and the Teamsters, said Sara Cullinane, Make the Road New Jersey director. A demonstration against the Amazon lease was held in Newark on Oct. 6, NJ Monitor reported.
Since the vote, employees who work at the existing facilities have asked the authority and board of commissioners what will happen to the union jobs they have now.
Instead, HedgeClippers contends union jobs will be replaced by jobs with “grueling standards” that “skirt benefits” and “discourages unionization” for workers. Amazon’s warehouse management practices subject workers to “grueling and pressure-filled shifts and demand workers meet production quotas that can be set 60 percent higher than the industry standard,” the report said.
The Port Authority defended the process used to select Amazon and said the agency has policies in place requiring the second highest minimum wage in the country be paid to airport workers, said Rick Cotton, executive director.
“It was a public procurement and was advertised. There were 3 bids and the selection committee of experts made its selection, we announced it,” Cotton said”It was a normal procurement. There was nothing unusual.”
The authority’s policy to bring airport workers to a $19 per hour minimum wage by 2023 is part of its Healthy Airports policy. Contractors also are required to use union construction workers and enter in to a dialog with unions seeking to represent employees, Cotton said.
While public comment on the lease wasn’t taken on Aug. 5, officials said comments have been made in September and at Thursdays meeting about the lease.
“If individuals have individual questions, Rick and I have an open door and an open line, feel free to call,” said Kevin O’Toole board of commissioners chairman.
Amazon officials defended the company.
“As a company we’re always looking to invest in communities and recruit talented people to join our team,” said Maria Boschetti, an Amazon spokeswoman. “While the lease at the Newark International Airport remains subject to final negotiation, I can say we’re proud of the investments we’ve made so far in New Jersey and look forward to continued engagement in the state.”
Hedge Clippers is an organization working to “shed light on the influence that billionaires, corporations, and hedge funds wield on our politics in order to expand their wealth, influence and power,” a spokeswoman said.
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Larry Higgs may be reached at lhiggs@njadvancemedia.com.