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I wouldn't say remarkable. It came down to dollars and cents. 13 jobs at 39k is not much higher than minimum wage. The cost of relocating the plant was probably higher, all things considered.
Well, given that the median annual wage in the US is about $44-45,000, that isn't much lower. That is also considering the COL of the area is below the national average as well. Not great, but not as low as some may realize in relation to the country as a whole. https://www.thebalancecareers.com/av...orkers-2060808
Let alone the "business climate" aspect. Hence, the "remarkable" comment.
The McKesson facility in the article is also not too far from the city’s East Side and I’m sure there are people on that side of town wouldn’t mind taking one of those 13 positions.
Last edited by ckhthankgod; 02-20-2019 at 09:48 AM..
Well, given that the median annual wage in the US is about $44-45,000, that isn't much lower. That is also considering the COL of the area is below the national average as well. Not great, but not as low as some may realize in relation to the country as a whole. https://www.thebalancecareers.com/av...orkers-2060808
Let alone the "business climate" aspect. Hence, the "remarkable" comment.
The McKesson facility in the article is also not too far from the city’s East Side and I’m sure there are people on that side of town wouldn’t mind taking one of those 13 positions.
13 slightly above minimum wage jobs in a warehouse is not a big deal. A fulfillment center is basically a warehouse where merchandise is shipped directly to a customer. There is no future in that job, its like a call center. Companies are taking advantage of the area to provide low cost, dead end jobs.
13 slightly above minimum wage jobs in a warehouse is not a big deal. A fulfillment center is basically a warehouse where merchandise is shipped directly to a customer. There is no future in that job, its like a call center. Companies are taking advantage of the area to provide low cost, dead end jobs.
Again, it would still be a good, honest job for 13 people that weren’t there before and the company could have left, but decided to stay in the area.
It isn’t the only company mentioned in the article anyway.
"McKesson would also keep its current 17,461-square-foot-facility, located up the street at 2851 Broadway, which it will use as a backup warehouse "in case something happens to the new facility we plan to open," the company said in the application. However, it will not have any full time employees on-site.
Do you still consider the jobs "good and honest" if they are part time?
"McKesson would also keep its current 17,461-square-foot-facility, located up the street at 2851 Broadway, which it will use as a backup warehouse "in case something happens to the new facility we plan to open," the company said in the application. However, it will not have any full time employees on-site.
Do you still consider the jobs "good and honest" if they are part time?
Sure, if the people working them need them. Why not?
Again, that is only one piece, as the facility stayed versus leaving.
13 slightly above minimum wage jobs in a warehouse is not a big deal. A fulfillment center is basically a warehouse where merchandise is shipped directly to a customer. There is no future in that job, its like a call center. Companies are taking advantage of the area to provide low cost, dead end jobs.
No kidding. My wife recruits for them. Medical sales are $100+
We see this time and again. A company seeks out an option to move, which it uses to extract concessions from the IDA and other entities. 1.24 million for 13 part-time jobs at slightly above minimum wage. The implied threat to relocate to Indiana and a few paltry jobs is the key to get money. Without the jobs it would be a tougher sell.
The whole Buffalo News article in regards to McKesson...
Drug distributor McKesson seeks big warehouse expansion in Cheektowaga
One of the world's biggest pharmaceutical and medical supply companies wants to invest more than $16.1 million in a new warehouse and distribution operation in Cheektowaga that would more than triple its space in the town.
McKesson Corp. is seeking $1.24 million in sales tax breaks on new equipment from the Erie County Industrial Development Agency to make the project competitive with an alternative site in southern Indiana.
The company says it has another option for the project – and a "viable" site – in Jeffersonville, Ind., across the Ohio River from Louisville, Ky. That community and the state of Indiana are offering a $2.2 million incentive package of corporate income tax credits, real estate tax refunds and personal property tax refunds, giving that location a $1.5 million edge over Cheektowaga without the ECIDA assistance, McKesson said.
Besides the ECIDA tax breaks, the company is also talking with Invest Buffalo Niagara and Empire State Development Corp. about Excelsior Jobs Tax Credits or other benefits. The rest of the funding will come entirely from the company. If approved, executives hope to start work in April and finish by October.
The San Francisco-based company – which is ranked sixth on the Fortune 500 list – is seeking to lease a 45,000-square-foot vacant warehouse from Benderson Development Co. at 2871 Broadway. It would then spend $3.9 million on renovations and $12.2 million on equipment and furniture to create a larger "central-fill pharmacy fulfillment operation."
The project would also keep 62 full-time jobs and create 13 new ones within two years, with $2.3 million in annual payroll, according to the company's application to the ECIDA. The average salary of the new jobs would be $39,000, while the retained jobs pay $43,000 on average.
McKesson would also keep its current 17,461-square-foot facility, located up the street at 2851 Broadway, which it will use as a backup warehouse "in case something happens to the new facility we plan to open," the company said in the application. However, it will not have any full-time employees on-site.
Additionally, McKesson has a larger 139,000-square-foot warehouse facility, with 91 full-time employees, at 2700 North America Drive in West Seneca. That will remain open, and will supply products to the new fulfillment center and others out of state, with no changes.
McKesson is a global provider of products and services for health care supply chain management, retail pharmacy, community oncology, specialty care and health information technology purposes. The publicly traded company is the largest pharmaceutical distributor in the country.
The ECIDA will hold a public hearing about the proposal – dubbed Project Frost by the company – at 11 a.m. on Feb. 26, at Cheektowaga Town Hall, at 3301 Broadway. The agency board is expected to consider the project at its March 27 meeting.
Unifrax " hopes to add another 10, who will earn an average annual salaries of $57,500, according to IDA documents." Hopes to add is not the same as adding. There may or may not be any new jobs. 750k of incentives.
McKesson will add 13 jobs over the next 2 years at slightly above minimum wage for 1.238 million.
The point of this is, the area remains uncompetitive with other areas of the country and has to dole out significant incentives just to retain businesses. All a company has to do is threaten to leave, toss in a few jobs and its money time. Instead of addressing the problems, all WNY gets are band-aids. Articles like the one that started this thread are just salve for the masses to look like something is being done. Ingersoll Rand closed and put 300 people out of work and a huge deal is made over 13-23 jobs being created. This forum would be better served by pointing out the business unfriendly, high tax and high regulation atmosphere in NYS.
Unifrax " hopes to add another 10, who will earn an average annual salaries of $57,500, according to IDA documents." Hopes to add is not the same as adding. There may or may not be any new jobs. 750k of incentives.
McKesson will add 13 jobs over the next 2 years at slightly above minimum wage for 1.238 million.
The point of this is, the area remains uncompetitive with other areas of the country and has to dole out significant incentives just to retain businesses. All a company has to do is threaten to leave, toss in a few jobs and its money time. Instead of addressing the problems, all WNY gets are band-aids. Articles like the one that started this thread are just salve for the masses to look like something is being done. Ingersoll Rand closed and put 300 people out of work and a huge deal is made over 13-23 jobs being created. This forum would be better served by pointing out the business unfriendly, high tax and high regulation atmosphere in NYS.
Is $39,000 a year " slightly above minimum wage"?
It would also be best if the truth in general about the project in question is told and that "business climate" depends on many factors or at least that there isn't some complete death sentence in terms of said rankings. We all get that the "climate" could be better, but I've been waiting on others to offer some solutions in order to do so.
As mentioned with the incentive game before, a lot of times and regardless of the location, the goal isn't necessarily met.
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