Amazon Opens Search for Amazon HQ2

[j.p.s]

Originally Posted by Cinisajoy

Well now, my first thought was I hope they don't move down here. We don't have enough workers.
As to the paychecks, yeah sure we will start you off at a quarter more an hour than other companies. Maybe $1 more for management positions.
Won't finish the rest of the thought.

Well, for the white collar workers, there's also the mandatory at least 50% extra hours per week, which brings into question whether the pay is actually higher.

[Cinisajoy]

Originally Posted by j.p.s

Well, for the white collar workers, there's also the mandatory at least 50% extra hours per week, which brings into question whether the pay is actually higher.

And the hourly employees get at least 10% less hours.
Thank you for completing my thought.

[pwalker8]

I have noticed that a number of large tech corporations have picked up this idea of outsourcing everything they can and expecting anyone who doesn't get paid overtime to work extra hours (all the while mouthing platitudes about family life balance and how employees are their greatest asset).

At one time, you could become a millionaire working for Apple or Microsoft (or other high tech start ups). You worked like a dog (60-80 hour work weeks), got lots of stock options and were able to leave after 5 years, wealthy enough to do whatever you wanted with the rest of your life. In a way, it was like being a mid-tier professional baseball player. You might only have a 10 year career, but you made a lot of money once you had been in the majors for 5 years and were free agent eligible.

Companies have forgotten the wealthy after 5 to 10 years part of the bargain. They think that with the exception of the upper management, who make out like the old robber barons from the late 1800's and early 1900's, people should work long hours for average pay. Without the carrot of becoming wealthy, not many people are willing to do that unless they have no choice, at least not for long.

Of course, this is a prime reason why many of these companies stop innovating over time. their best employees move on to other companies and the brightest no longer see that company as a desirable place to work.

[cfrizz]

It's not just tech corporations that do outsourcing. Every major company in the USA operates this way now.

All they care about is a never ending climbing stock price, so that means that they pay as few salaries that they can so that they don't have to worry about paying benefits and outsource as much as they can so they don't have to pay benefits.

Overtime is mandatory, but they will only compensate with time off rather than money.

Those that have to clock in and out HAVE to be paid money, but if that time is not approved you can expect to be warned not to do it again. Do it too many times and they can let you go.

The salaries they pay are low so that a good many have to work 2-3 jobs to make ends meet.

So what these companies end up with is a endless revolving door of people who come in maybe for a year or two then move on. In some areas, the jobs are so tough that they come in do their orientation, then start doing the job to decide the money vs the risk isn't worth it and bail within a month!

They spend a ton of money and time onboarding these people just to have them walk out in weeks, talk about a waste of money. But that's the acceptable business model these days.

[pwalker8]

Originally Posted by cfrizz

It's not just tech corporations that do outsourcing. Every major company in the USA operates this way now.

All they care about is a never ending climbing stock price, so that means that they pay as few salaries that they can so that they don't have to worry about paying benefits and outsource as much as they can so they don't have to pay benefits.

Overtime is mandatory, but they will only compensate with time off rather than money.

Those that have to clock in and out HAVE to be paid money, but if that time is not approved you can expect to be warned not to do it again. Do it too many times and they can let you go.

The salaries they pay are low so that a good many have to work 2-3 jobs to make ends meet.

So what these companies end up with is a endless revolving door of people who come in maybe for a year or two then move on. In some areas, the jobs are so tough that they come in do their orientation, then start doing the job to decide the money vs the risk isn't worth it and bail within a month!

They spend a ton of money and time onboarding these people just to have them walk out in weeks, talk about a waste of money. But that's the acceptable business model these days.

It really comes down how they can spin the books to the stock investor community. Every major company doesn't do business that way, but most of the major companies that are not closely (i.e. they don't have to worry about activist investors) held do. In general, when the founder retires or dies, the professional manager class takes over and forgets what made the company great. Amazon follows the Walmart model and is a bit of an outer in that regard.

Fortunately, there is finally starting to be debate over the wisdom of this business model. try googling fiduciary verse agent. There was a very good HBR article on the subject.

[fjtorres]

Here is an examination of the rationale for a second HQ:

http://www.techproresearch.com/artic...96500774529668

They even suggest that more companies need to consider decentralized management.

[tubemonkey]

Amazon Announces Candidates for HQ2

Amazon expects to create 50,000 high-paying jobs and invest over $5 billion in the city where it opens HQ2, a full equal to its Seattle HQ

SEATTLE--(BUSINESS WIRE)--Jan. 18, 2018-- (NASDAQ: AMZN)—Amazon reviewed 238 proposals from across the U.S., Canada, and Mexico to host HQ2, the company’s second headquarters in North America. Today, Amazon announced it has chosen the following 20 metropolitan areas to move to the next phase of the process (in alphabetical order):

- Atlanta, GA

- Austin, TX

- Boston, MA

- Chicago, IL

- Columbus, OH

- Dallas, TX

- Denver, CO

- Indianapolis, IN

- Los Angeles, CA

- Miami, FL

- Montgomery County, MD

- Nashville, TN

- Newark, NJ

- New York City, NY

- Northern Virginia, VA

- Philadelphia, PA

- Pittsburgh, PA

- Raleigh, NC

- Toronto, ON

- Washington D.C.

[fjtorres]

A lot of those cities are camouflage.
(Or leverage on the real targets.)
Unless what they really want is a canadian homebase the likeliest landing spots are still Raleigh, Austin, and Northern Virginia. In about that order.

[Fbone]

Originally Posted by fjtorres

A lot of those cities are camouflage.
(Or leverage on the real targets.)
Unless what they really want is a canadian homebase the likeliest landing spots are still Raleigh, Austin, and Northern Virginia. In about that order.

Agreed. Competition to receive even more incentives.

My choices are Raleigh, Atlanta, Virginia. Not surprisingly all three were very stingy with their incentives.

[ZodWallop]

In the beginning I thought this story was interesting. But over time I've decided it's just unseemly.

[pwalker8]

Originally Posted by Fbone

Agreed. Competition to receive even more incentives.

My choices are Raleigh, Atlanta, Virginia. Not surprisingly all three were very stingy with their incentives.

Atlanta is trying to pitch a small patch of unused land near downtown. I would be pretty surprised if Amazon goes for it. Atlanta has a pretty big techie/programming community with Georgia Tech and a lot of high tech companies in midtown, but it also has terrible infrastructure issues in the downtown area. A few miles north would be a much better location, but the politicians really want companies to come back to downtown.

[rcentros]

I wouldn't doubt that it would be Dallas since Amazon already has three or four big distribution centers in DFW, and Texas is "business friendly." Besides, Dallas "centrally located." When Farmer Brothers Coffee moved their headquarters right up the road from me (from Torrance California) the small town (Lake Worth, I think) gave them a 90% tax deferral for 10 years. (Isn't that nice, the residents get to subsidize them.) Guess what happens in ten years? Probably Farmer Brothers picks up and moves somewhere else where they can the local citizens to subsidize them for another ten years.

[ZodWallop]

Originally Posted by rcentros

I wouldn't doubt that it would be Dallas since Amazon already has three or four big distribution centers in DFW, and Texas is "business friendly." Besides, Dallas "centrally located." When Farmer Brothers Coffee moved their headquarters right up the road from me (from Torrance California) the small town (Lake Worth, I think) gave them a 90% tax deferral for 10 years. (Isn't that nice, the residents get to subsidize them.) Guess what happens in ten years? Probably Farmer Brothers picks up and moves somewhere else where they can the local citizens to subsidize them for another ten years.

Hey, I was born in Torrance! Grew up (partly) in Lomita.

[Fbone]

Originally Posted by pwalker8

Atlanta is trying to pitch a small patch of unused land near downtown. I would be pretty surprised if Amazon goes for it. Atlanta has a pretty big techie/programming community with Georgia Tech and a lot of high tech companies in midtown, but it also has terrible infrastructure issues in the downtown area. A few miles north would be a much better location, but the politicians really want companies to come back to downtown.

I was thinking they would choose Cobb County near Sun Trust Park. From what I understand it's being promoted as business friendly.

The state I live in offered Amazon $7 billion in incentives, the highest of the 20 candidates, and it's still at the bottom of the list.

[pwalker8]

Originally Posted by Fbone

I was thinking they would choose Cobb County near Sun Trust Park. From what I understand it's being promoted as business friendly.

The state I live in offered Amazon $7 billion in incentives, the highest of the 20 candidates, and it's still at the bottom of the list.

I don't think that Cobb County matches many of Amazon's selection criteria. Is Jeff Bezo a baseball fan?