When global corporations relocate part of their production and value creation to small towns and cities, this is usually big news for them. Recently, you can see this very well in the settlement of the Tesla Gigafactory in Brandenburg: The mayor of Grünheide is doing his best to please the US car maker. And knows the state government is on its side.
However, not all global corporations evoke this enthusiasm among residents. When Amazon announces that it is opening a new logistics center in a location in Germany, the worry usually outweighs it. This is also the case in Bad Oldesloe, Schleswig-Holstein. The US mail order company is building a new ten-hectare distribution center there and creating 150 new jobs. What sounds like good news at first turns out to be more of a burden for the place.
“For Bad Oldesloe the financial return will be rather low. If you compare it, what business tax we can expect from Amazon is roughly what a small, medium-sized craft business pays, ”said Jörg Lembke to NewsABC.net. He is the city’s mayor and clearly points out that Bad Oldesloe will ultimately have more costs than benefits from the Amazon settlement.
Bad Oldesloe’s negative business
The trade tax, which Amazon will only cede annually in the amount of 10,000 to 15,000 euros, is one thing. Much more important are the costs that the city incurs. Amazon sometimes pays its employees so poorly that the city administration expects to have to provide basic social security for numerous employees. In addition, the social housing construction has to be increased because of the new employees, because many of them cannot afford the rents in the village. “Amazon is on our pocket. The bottom line is that the arrival of the online retailer is no reason to be happy, ”says Mayor Lembke.
Last but not least, the traffic in the village will probably be burdened by the thousands of Amazon vans, there can be backlogs right into the city center, which could affect the rush hour traffic of normal residents. In the end, so much seems to be certain already, the move to Amazon will be negative business for the small northern German town.
Amazon contradicts Mayor Lembke’s representations. “Secure and attractive jobs have been created at all of our German locations. Employees in Bad Oldesloe will receive at least 11.71 euros gross per hour plus other extras. We also point out that the jobs we offer with all the services listed do not require any formal training or apprenticeship. We are interested in a long-term commitment with the community, we support charitable initiatives and want to be a good neighbor.“, Says an Amazon spokeswoman to NewsABC.net.