Amazon’s efforts to attract 600 employees to its new New Stanton warehouse are like a double-edged sword for Westmoreland’s economy: for task creation, but potentially difficult for small businesses that have to compete for capacity with the billionaire giant.
“It’s wonderful that they chose New Stanton,” but there are considerations that the package delivery company will attract workers from their existing jobs at small businesses, said Daniel DeBone, president of the Westmoreland Chamber of Commerce.
Attracting and retaining remains a top factor for businesses, DeBone said.
“Small businesses are the lifeblood of our economy. We must ensure that our small businesses continue to thrive,” he said.
Amazon is for workers at a time when there are still many symptoms of seeking help in businesses in the county, where the unemployment rate is 3. 5%. To do this, Amazon is planning some other hiring occasion from 11 a. m. to 11 a. m. m. a 3 p. m. Aug. 2 at the PA CareerLink workplace at Westmoreland County Community College on Pavilion Lane near Youngwood.
Amazon representatives were pleased with the reaction from potential job seekers at a recruiting occasion last week, said Janice Albright, site manager for PA CareerLink near Youngwood. About 140 more people got information about tasks on Amazon, Albright said.
Amazon’s filling of six hundred positions in New Stanton is expected to “have minimal impact” on businesses in that immediate region because New Stanton is readily available in other counties, said Majestic Lane, equity director at the Allegheny Conference on Community Development. in Pittsburgh. -grassroots organization. organization of regional economic progression. Allegheny County commuters can reach New Stanton via the Pennsylvania Turnpike; those in Washington County have access to the site via Interstate 70; and central Fayette County is connected via Route 119. Lane said his attraction could even expand to Ohio and West Virginia.
“Companies can locate other personnel. We don’t expect a negative impact” on the homework market, Lane said. As of May, there were 6,500 unemployed employees in Westmoreland County, in addition to 20,000 in Allegheny, 2,200 in Fayette and 3,400 in Washington, according to the Center for Workforce Information and Analysis. The State.
The owner of Castle Co-Packers LLC, a Latrobe-based packaging company for beverages such as tea, sports drinks and energy drinks, agrees with Lane’s assessment of its impact on the job market.
“I don’t think Amazon has had any effect on employment,” said Brian Dworkin, president of Castle Co-Packers.
Dworkin said his challenge in locating staff predates any attempt through Amazon to rent staff for its 1 million-square-foot warehouse near the New Stanton turnpike exit.
“We would have opened three more if we had the employees,” Dworkin said.
Amazon’s call to work hard probably won’t make it any harder for Mark Petros to find workers in his Greensburg machine shop.
“They’ll have a lot of applicants because you don’t need to have education or school training,” Petros said of Amazon.
While Amazon’s wage for entry-level jobs at its inbound transportation facility is $17. 75 an hour, with benefits including fitness insurance and paid time off, Dworkin said he worries that the delivery company’s wage distribution will make it harder to locate workers. Castle Co. – Packhouse workers make more money as they increase their capacities, Dworkin said.
Amazon’s starting wage is above the average of $15. 38 an hour for entry-level jobs for freight truck workers and handlers, according to state labor data. The average wage in the seven-county Pittsburgh region for experienced warehouse staff and handlers is approximately $22 per hour, according to the state’s knowledge.
While there may be wage pressures on some small businesses that can’t compete with Amazon’s pay structure, Lane said the new employer injecting $1. 8 million a month into the region’s economy may also simply help businesses because employees will likely spend their money. in the area.
“Wages are a way for the market to balance itself. It’s something that affects the workforce,” Lane said.
There can be an effect on existing wage design whenever a new employer enters the job market, said Brianne Summy, director of human resources at Rochling Machine Plastics in East Huntingdon, a manufacturer of traditional plastic components.
“It’s about seeing what other employers offer. . . so we can tailor our benefits to increased competition,” Summy said.
Summy said he doesn’t think the company is likely to lose veteran employees to Amazon. The plastics company is in the same staff pool as Amazon, to fill jobs.
“It’s for everyone,” Summy said.
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