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Silicon Valley’s Newest Rival: The Banks of the Hudson

When Facebook was searching for another New York office, one big enough to fit as many as 6,000 workers, more than double the number it currently employs in the city, it had one major demand: It needed the space urgently.

So after the company settled on Hudson Yards, the vast mini-city taking shape on Manhattan’s Far West Side, existing tenants were told to move and a small army of construction workers quickly began to revamp the building even before a lease had been signed.

Facebook’s push to accommodate its booming operations is part of a rush by the West Coast technology giants to expand in New York City. The rapid growth is turning a broad swath of Manhattan into one of the world’s most vibrant tech corridors.

Four companies — Amazon, Apple, Facebook and Google — already have big offices along the Hudson River, from Midtown to Lower Manhattan, or have been hunting for new ones in recent months, often competing with one another for the same space.

In all, the companies are expected to have roughly 20,000 workers in New York by 2022.

Cities across the United States and around the world have long vied to establish themselves as worthy rivals to Silicon Valley. New York City is certainly not anywhere close to overtaking the Bay Area as the nation’s tech leader, but it is increasingly competing for tech companies and talent.

New York’s rise as a tech hub comes as industries that have long dominated the city’s economic landscape are transformed by technology, and are themselves increasingly reliant on software engineers and other highly skilled workers.

The growth in New York is occurring largely without major economic incentives from the city and state governments. Officials are mindful of the outcry last year over at least $3 billion in public subsidies that Amazon was offered to build a corporate campus in Queens.

The retail behemoth, stung by the backlash, canceled its plans abruptly in February. It is continuing to add jobs in the city, although at a slower pace.

Still, Amazon’s announcement last month that it would lease space in Midtown for 1,500 workers renewed a debate over whether incentives should be used to woo huge tech companies to New York.

Opponents of the earlier deal, including Representative Alexandria Ocasio-Cortez, Democrat of Queens, said Amazon’s decision to expand in Manhattan showed that New York was so attractive that tax breaks were unnecessary.

Others responded that the Hudson Yards space the company was leasing paled next to the campus proposed for Long Island City, Queens, and to the 25,000 people Amazon had pledged to employ there.

Tech companies are choosing New York to tap into its deep and skilled talent pool and to attract employees who prefer the city’s diverse economy over technology-dominated hubs on the West Coast. New York is also closer to Europe, an important market.

“For a long time, if you lived in the broader tech sector, there was inertia that brought you to Silicon Valley,” said Julie Samuels, executive director of Tech: NYC, a nonprofit industry group. “So many people wanted to live here and move here, but felt the jobs weren’t here. Now the jobs are here.”

Google has grown so quickly and is so squeezed for space that it is temporarily leasing two buildings until a much larger development in Manhattan near the Holland Tunnel, St. John’s Terminal, is ready in 2022.

The big tech firms started in New York with small outposts. Google’s first New York employee, a sales worker, arrived in 2000, and worked out of a Starbucks in Manhattan. It was the company’s first office outside California.

Tech industry offices were once mostly filled with sales and marketing employees who needed to be closer to their customers and to industries like fashion, finance, media and real estate that power the city’s economy.

Over the past five years, though, the makeup of the companies’ combined New York work force has come to resemble the West Coast version: a mix of engineers and others involved in software development.

The New Tech Corridor

Four big technology companies will have a combined 20,000 workers in the city by 2022, mostly concentrated along Manhattan’s West Side. Squares on the map show where Facebook, Google and Amazon have leased space, or are planning to.

The New York Times

At Google’s New York office, highly skilled workers now outnumber their colleagues in sales and marketing. Of the nearly 800 job openings that Amazon has in the city, more than half are for developers, engineers and data scientists.

“Every line of business and every platform is represented quite healthfully,” said William Floyd, Google’s head of external affairs in New York, the company’s largest office except for its Mountain View, Calif., headquarters. “Not everyone wants to be in California.’’

Oren Michels, a tech adviser and investor who sold Mashery, a company based in San Francisco, to Intel in 2013, said that New York City had become a refuge for tech workers who did not want to be surrounded solely by those working in the same industry.

“You have younger engineers and those sorts of people who frankly want to live in New York City because it’s a more interesting and fun place to live,” he said. “San Francisco is turning into a company town and the company is tech, both professionally and personally.”

Mr. Michels said that his family had bought a home in Manhattan in 2014 with a plan to split their time between San Francisco and New York. They soon decided to live full time in New York, where Mr. Michels is on the boards of four tech firms.

The number of tech jobs in New York City has surged 80 percent in the past decade, to 142,600, from 79,400 in 2009, according to the New York State Comptroller’s office. (The business services industry, which includes accountants and lawyers and is the largest private sector, employed 762,000 people in 2018, according to the comptroller’s office.)

Since 2016, the number of job openings in the city’s tech sector has jumped 38 percent, an analysis for The Times by the jobs website Glassdoor found. In November, New York had the third-highest number of tech openings among United States cities, 26,843, behind just San Francisco and Seattle.

It is not only the biggest tech firms that are growing in New York. From 2018 through the third quarter of 2019, investors pumped more than $27 billion into start-ups in the New York City region, the second most in that time for any area outside San Francisco, according to the MoneyTree Report by PwC-CB Insights. (Nearly $100 billion was invested in start-ups in the Silicon Valley area in that period.)

Industries like finance, retail and health care provide more jobs, but the tech sector, with an average salary of $153,000, has become one of New York City’s main economic drivers.

That has raised concerns about whether the industry is intensifying income inequality and making New York unaffordable for more people.

The four big tech companies “attract thousands of out-of-state employees with advanced degrees and work experience, and drive unprecedented influxes in luxury rentals, rent hikes, and the flipping of buildings and private homes,” said Kiana Davis, a policy analyst at the Urban Justice Center.

“It should go without saying,’’ she added, “that middle-income, low-wage, poor and unemployed residents in these cities cannot access the luxury housing market nor the rising rents and have been driven out of their communities as a result.”

Jonathan Miller, president of Miller Samuel, a real estate appraisal firm, said that the residential market in Manhattan had been strong in areas where the tech firms had grown.

“I speak to brokerage groups twice a week, and the conversation is always peppered with questions about the tech sector,” Mr. Miller said. “If you have 20,000 employees coming in who are high-wage earners, that can have a pronounced impact.”

The major tech firms are expected to grow to the point that they are among the largest private tenants in New York in the coming years, rivaling longtime leaders like JPMorgan Chase.

Among companies in the technology, advertising, media and information industries, Google and Facebook are now the largest tenants, beating out legacy companies like Condé Nast, News Corp. and Warner Media, according to an analysis performed for The Times by the real estate company Cushman & Wakefield.

Facebook employs 2,900 people in New York, and recently signed the lease at Hudson Yards for 1.5 million square feet in three buildings. In addition to providing space for 6,000 workers, the deal gives the company an option to take over another several hundred thousand square feet in the development.

Facebook executives initially set their sights on a marquee building on Madison Avenue in the Flatiron district, not far from the company’s existing offices, according to a person familiar with Facebook’s plans.

But then Facebook executives toured Hudson Yards and were impressed with the amenities, including shops and restaurants, and with the short walk to major subway lines.

A deal was struck in November, but with a requirement on Facebook’s part that about 300,000 square feet in two buildings, 30 and 55 Hudson Yards, be ready very soon.

Workers were immediately brought in to begin preparing the space and to move out existing tenants.

Two blocks east, Facebook is close to signing a lease for about 700,000 square feet in the 107-year-old James A. Farley Building across from Pennsylvania Station, according to three people familiar with the deal. The property, also known as the Farley Post Office, is being renovated by the Related Companies and another developer, Vornado Realty Trust.

More than 2,500 employees could eventually work there. (The Wall Street Journal first reported on the potential lease.)

“It’s hard to predict future growth, but we believe New York is a vibrant market with a tremendous pool of talent,” a Facebook spokeswoman, Jamila Reeves, said. She declined to comment on the company’s specific plans.

Just north of the Farley building, Amazon said recently that it had signed a lease for 350,000 square feet in a building on 10th Avenue near Hudson Yards, enough space for 1,500 employees. The social media company LinkedIn, whose New York offices are not far away, in the Empire State Building, recently said it would expand to four additional floors in the landmark property.

The tech titan whose intentions in New York are probably least known is Apple.

Executives at the company, which has had an office in the Flatiron area, have toured buildings in that neighborhood and in the Hudson Yards area but a deal has not yet been signed. Apple has inquired about leasing much less space than other big tech companies, roughly 50,000 square feet.

Apple declined to comment.

For every West Coast company with a household name that has expanded in New York, there are many large but lesser-known firms with headquarters in the city.

One, Datadog, which provides cloud-based software for businesses, went public in September and is valued at $10.5 billion. The company has 480 employees in its New York offices, up from 125 three years ago.

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California Freelancing, Self-Employment and Independent Contracting Labor and Jobs Law and Legislation Layoffs and Job Reductions Lyft Inc National Press Photographers Assn Uber Technologies Inc Uncategorized Vox Media Inc

California Wanted to Protect Uber Drivers. Now It May Hurt Freelancers.

SAN FRANCISCO — Gloria Rivera likes the freedom of freelance.

She moved to San Diego from Peru in 2005 and has a bustling career as an interpreter and translator for doctors, courts and conferences.

Now, as a new California law governing freelancers is set to take effect on Wednesday, her clients are wary. They are asking for more paperwork. Some services are hitting pause on hiring Californians at all.

“Everyone’s scared in California,” Ms. Rivera, 42, said. “Who’s going to hire me as an employee for three assignments a month?”

The new law, Assembly Bill 5, will radically reshape freelance work in California. Prompted in part by frustration with the treatment of workers by companies like the ride-hailing behemoths Uber and Lyft, the bill was created to extend workplace legal protections to roughly one million people in the state.

On Monday, Uber and Postmates filed a lawsuit in federal court in California seeking to block the law from being enforced against them. But the suit is unlikely to stop the law from going into effect in other professions.

Those other industries include a wide variety of freelance workers, such as writers, translators, strippers and clergy. Many said they were now discovering that the law could make earning a living much more difficult.

The idea behind the law, signed in September, is that many workers are misclassified as contractors so companies can save money. Unlike contractors, employees are protected by minimum-wage and overtime rules and are entitled to workers’ compensation and unemployment insurance. Their employers pay half their payroll taxes for Social Security and Medicare.

A.B. 5 codified and extended the reach of a 2018 State Supreme Court ruling that said workers must be classified as employees if the work they did was a regular part of the company’s business. Under the ruling, a plumber who fixes a leak at a store may be a legitimate contractor. But workers who sew dresses at home using cloth and patterns provided by the manufacturer are likely to be employees.

The new law also means a company must treat workers as employees if it controls how they do their work, or if the workers don’t run independent businesses in the same line of work that they do for the company. A plumber who worked only at the store would most likely be deemed an employee.

The law has a host of so-called carve-outs. It exempts certain white-collar workers like doctors and accountants, but it extends legal protections to tens of thousands of low-paid workers in fields like construction, janitorial services and hairstyling.

But complexities cropped up quickly. For example, marketers and grant writers were exempted, but journalists were not.

So a weekly columnist for a newspaper must now be considered an employee, since under the new law a freelance writer can publish only 35 so-called submissions a year with a publication. (A video and a text article on the same event would count as one.) The intention was to require newspapers to put these workers on staff. The result in some cases has been layoffs.

Vox Media cut more than 200 California freelancers, citing the new law. The transcription service Rev told its freelancers that it would be leaving California.

Emma Gallegos, 34, has been freelancing while saving money to start a local news website, Hwy 99, covering her hometown, Bakersfield, located in California’s agricultural heartland. She recently took a copy-editing test to get a significant contract that would help pay her bills. Afterward, the potential client emailed her, apologizing and explaining that it would not be able to hire her because she lived in California.

“There aren’t many full-time writing jobs in Bakersfield, so these kinds of remote editing contracts are important for me,” said Ms. Gallegos. “I just feel really frustrated and like I’m getting set back from my goals.”

Proponents of the new law argue that many companies are playing on worker anxieties and that many of the arrangements that employers are abandoning were illegal even before A.B. 5.

“A lot of these employers are sending out these fear-mongering emails,” said Assemblywoman Lorena Gonzalez of San Diego, the bill’s author. “I guess in this day and age of Twitter, that’s an easy thing to do — create a kind of mass hysteria.”

Ms. Gonzalez, a progressive Democrat, has in recent weeks become a fierce Twitter presence pushing back at critics, sometimes with profanity.

When asked about some of Ms. Gonzalez’s tweets, a spokeswoman said by email: “The assemblywoman is incredibly angry at an economic system that has caused a permanent underclass in her community of working men and women who are constantly being squeezed by corporate greed.”

Ms. Gonzalez has said the problems facing companies that rely on freelancers preceded the new law.

SB Nation, the sports website owned by Vox Media, which cited A.B. 5 as the reason it recently let go about 200 freelancers, was already sued by freelancers before the law changed. In one lawsuit, freelancers claimed that they worked as many as 40 hours a week but earned less than $150 a month.

A spokeswoman for Vox Media declined to comment but cited a post from SB Nation’s executive director in which he said the change was also “part of a business and staffing strategy that we have been exploring over the past two years.”

Even in situations where the new law might hurt workers, Ms. Gonzalez said, the reality is more nuanced than opponents let on. She pointed out that some media outlets, including SB Nation and The Los Angeles Times, were hiring more employees because of the new law.

While acknowledging concerns among journalists, Ms. Gonzalez attributed the media angst over the law partly to journalistic ethics: Those who lose their jobs feel free to complain loudly. But those who may benefit from the law by becoming employees, she said, “think it’s not appropriate to be engaged in something that affects them, that they have a conflict.”

Some freelancers said the new law would force them to change the way they worked. And some said they preferred or needed their flexible schedules. Many companies limit their employees’ flexibility for practical reasons, though there is nothing that requires them to impose a rigid schedule.

Nancy Depper, a copy editor and proofreader in Oakland, has multiple sclerosis. So “setting my own hours makes life infinitely better for all the reasons,” she said. She said she had lost a set of contracts for 2020 worth $120,000.

“I’ve barely had time to process the information,” Ms. Depper, 53, said. “I don’t know what my options are going forward.”

The National Press Photographers Association, which represents photographers who could lose freelance work because of the law, has filed a lawsuit challenging A.B. 5.

“Photographers and writers are stuck between the rock of dwindling to nonexistent employment opportunities and the hard place of A.B. 5,” said Mickey H. Osterreicher, general counsel for the association.

The politics of the bill were messy. There was significant support on the left for regulating Uber and Lyft, which use incentives to encourage drivers to work when and where the companies need them while avoiding any of the protections offered by employment. Ms. Gonzalez focused partly on those companies.

But many of those who could end up losing freelance work consider themselves progressives, so it has been confusing to find themselves disagreeing with a progressive lawmaker over a union-backed law.

Vanessa McGrady, a writer in Los Angeles who runs a feminist clothing brand, planned to volunteer for Senator Elizabeth Warren’s presidential campaign next year. But then Ms. Warren endorsed A.B. 5. Now Ms. McGrady, who is anxious about how the law will affect her career, is conflicted.

“I feel so strongly that workers need protection,” Ms. McGrady said. “But this bill is killing cockroaches with a cannon.”

Strip-club owners up in arms about the law’s effect on their industry may have little recourse because courts have found that many clubs misclassified dancers even under older rules in a number of states. But freelance strippers in California who earn money from streaming services that pipe their performances onto customers’ computers and mobile devices may now find that these online platforms refuse to work with them for fear of being held in violation of the law.

Steve Smith, a spokesman for the California Labor Federation, which advised lawmakers on A.B. 5, conceded that the law was somewhat ambiguous in this area and that the State Legislature should clarify issues like this in the coming years.

“There are going to be unintended consequences with a law like this,” he said. “We want to do everything we can to make sure we’re addressing the right problems and not having any adverse effects on workers.”

Nellie Bowles reported from San Francisco and Noam Scheiber from Evanston, Ill. Marc Tracy contributed reporting from New York.

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Uber and Postmates File Suit to Block California Freelancer Law

Uber and Postmates filed a lawsuit in federal court in California on Monday, seeking an injunction to prevent the state’s landmark freelancer law from taking effect against them on Jan. 1 as scheduled.

The action underlines how high the stakes are for Uber and Postmates with the new California law, called Assembly Bill 5. The law could potentially threaten their businesses because under it, workers must be classified as employees rather than contractors under certain conditions, such as if a company controls how they do their work or if the work is a regular part of the company’s business.

Most employment experts have said the new law will require Uber and its rival, Lyft, along with delivery services like Postmates, to classify their drivers in California as employees. That could add 20 to 30 percent to Uber’s and Lyft’s labor costs and lead to many hundreds of millions of dollars in additional expenses a year, if not more.

As employees, drivers would be protected by minimum wage and overtime rules and would be eligible for workers’ compensation and unemployment insurance. The companies would have to pay half of their payroll taxes for Medicare and Social Security.

Postmates said it was seeking to delay the law from taking effect to gain time to figure out a compromise so that its workers would not be classified as full-time employees. Postmates and Uber argued in their complaint that California’s State Legislature had exempted certain industries while denying an exemption to what are known as “gig work” companies on essentially irrational grounds.

The suit is unlikely to stop the law from taking effect against workers outside the gig companies. A federal judge will decide whether to grant a preliminary injunction blocking the law from being enforced against the gig companies, which could later turn into a permanent injunction.

Uber said in a statement that it was bringing a legal challenge against the new law “on the basis of lack of equal protection and due process under both federal and state law.” The ride-hailing company declined to comment further.

Postmates said, “This lawsuit is an effort to preserve on-demand work opportunities,” added that it was urging state lawmakers, organized labor and Gov. Gavin Newsom to negotiate a compromise.

But Assemblywoman Lorena Gonzalez of San Diego, the bill’s author, said in a statement that “Uber is in court bizarrely trying to say A.B. 5 is unconstitutional.” She added, “The one clear thing we know about Uber is they will do anything to try to exempt themselves from state regulations that make us all safer and their driver employees self-sufficient.”

Uber and Lyft both said in documents they filed in anticipation of their public offerings in 2019 that having to classify drivers as employees could significantly hurt their financial performance. Both companies’ stocks have dropped since they went public this year.

California legislators passed the new law in September and it was signed into law. Uber, one of the main targets of the legislation, had previously declared that it did not plan to reclassify its drivers as employees and that it thought its drivers could retain their independent status even under the new law. Uber and Lyft have both also announced that they would each kick in $30 million for a state ballot initiative to essentially exempt their drivers from the new law.

In addition to Uber and Postmates, two workers — one who drives using Uber and another who delivers food through the Postmates app — also joined the lawsuit.

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Prime Anchor: An Amazon Warehouse Town Dreams of a Better Life

Image
Credit…Andrew Spear for The New York Times

In Campbellsville, Ky., the tech giant’s influences abound. The profits, not so much.


CAMPBELLSVILLE, Ky. — In the late 1990s, the town of Campbellsville in central Kentucky suffered a powerful jolt when its Fruit of the Loom textile plant closed. Thousands of jobs making underwear went to Central America, taking the community’s pride with them.

Unemployment hit 28 percent before an unlikely savior arrived as the century was ending: a madly ambitious start-up that let people buy books, movies and music through their computers.

Amazon leased a Fruit of the Loom warehouse about a mile from the factory and converted it into a fulfillment center to speed its packages to Indianapolis and Nashville and Columbus. Its workers, many of them Fruit veterans, earned less than what the textile work had paid but the digital excitement was overwhelming.

Twenty years later, Amazon is one of the world’s most highly valued companies and one of the most influential. Jeff Bezos, Amazon’s founder, has accumulated a vast fortune. In Seattle, Amazon built a $4 billion urban campus, redefining a swath of the city.

The outcome has been different in Campbellsville, the only sizable community in Taylor County. The county population has stalled at 25,000. Median household income has barely kept pace with inflation. Nearly one in five people in the county lives in poverty, more than in 2000.

Over the last 20 years, Amazon’s stock price has soared. But household income in Taylor County has barely kept pace with inflation.

Taylor Co., Ky.

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Taylor County, Ky.

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Income figures are adjusted for inflation.

Sources: Census Bureau, via Federal Reserve (income data); Refinitiv (stock prices)

By Karl Russell

The divergent fates offer a window into what towns can give to tech behemoths over decades — and what exactly they get in return. Campbellsville’s warehouse was among the first of what are now an estimated 477 Amazon fulfillment centers, delivery stations and other outposts around the country. That makes Campbellsville, with 11,415 inhabitants, a case study for what may happen elsewhere as Amazon continues expanding.

Brenda Allen, Campbellsville’s mayor, said: “Amazon has had a really good business here for 20 years. They haven’t been disappointed at all. And we’re glad they’re here.”

But, she added, “I really would feel better if they would contribute to our needs.”

In central Kentucky, Amazon has reaped benefits, including a type of tax break that critics label “Paying Taxes to the Boss.” In the arrangement, 5 percent of Amazon workers’ paychecks, which would ordinarily be destined for the county and the state, go to Amazon itself. The company netted millions of dollars from this incentive over a decade.

While that tax break has run out, Campbellsville itself still gets no tax money from Amazon. The warehouse is just outside the town limits. The city school system, which is its own taxing authority, does get revenue from Amazon. Both the city and the county school systems recently raised their tax rates because of revenue shortfalls. (The city increase had to be rescinded for procedural reasons.)

No one wants Amazon to leave, though. It is Campbellsville’s largest private employer. Its online mall has given the town’s shoppers access to a paradise of goods.

Less visibly, Amazon shapes the local economy, including which businesses survive and which will not be coming to town at all. It supplies small-screen entertainment every night, influences how the schools and the library use technology and even determined the taxes everyone pays.

“We were a company town with Fruit of the Loom, and we’re becoming a company town again,” said Betty J. Gorin, a local historian.

Amazon said it was not solely responsible for Campbellsville’s vitality. It pointed out other big local employers, including a hospital and a Baptist university. “Amazon is not the only barometer,” it said.

The company said it had spent $53 million remodeling its warehouse “to benefit employees.” The facility now includes a classroom for training workshops and, it said, “on-site college classes.” Amazon declined a request for a tour.

Some cities and towns are now weighing the costs of Amazon versus the benefits. The nationwide total of all state and local subsidies for the company over 20 years is $2.8 billion, according to Good Jobs First, which tracks tax breaks for corporations.

Activists protested New York’s plan to give Amazon billions of dollars in tax breaks, causing the company to abandon its plans this year to move into Queens. (Amazon began opening new offices in Manhattan this month without any incentives.) Maryland residents rejected a proposed warehouse last summer, citing concerns about noise pollution, traffic and safety.

In Campbellsville, the relationship between Amazon and the citizens is facing some questions as it enters middle age.

“The needle has not moved in the last two decades on the quality of life in Kentucky, especially in places like Campbellsville. What does that tell you?” said Jason Bailey of the Kentucky Center for Economic Policy, a research and advocacy group.

He called the state “a fiscal mess because of tax giveaways to Amazon and other companies.” Kentucky has had 20 rounds of budget cuts since 2008, he said.

In 1948, a Kentucky underwear company set up an outpost in the basement of the old Campbellsville armory with five employees. This eventually became the largest single male-underwear plant in the world, with 4,200 workers producing 3.6 million garments a week.

The money was good, especially for women and African-Americans who had few other opportunities. Fruit, as it was eventually called, built the first public tennis courts and paid the city $250,000 in 1965 to expand the wastewater disposal plant. Factory executives spurred the creation of a country club and the public swimming pool.

The easy times ended with the North American Free Trade Agreement, which took effect in 1994. Amazon’s arrival five years later offered a second chance. Campbellsville was more than 40 miles from the nearest interstate, but it had a 570,000-square-foot modern warehouse and thousands of eager workers who knew how to hustle.

To woo Amazon, the local fiscal court passed the payroll tax measure, which opened up the state coffers. Amazon’s workers, like other employees in the county, would pay a 1 percent payroll tax and a 4 percent state income tax. But that money went directly to Amazon as a reward for bringing in jobs.

This type of tax break was first developed in Kentucky and is now widespread. Amazon’s incentives totaled $19 million over 10 years, including exemption from the state’s corporate income tax. The company said it had ultimately received “less than half” that amount, though it declined to explain the discrepancy.

The enthusiasm with which yesterday’s workers embraced tomorrow’s economy was a big story that drew national attention. Making underwear was not sexy. Selling things online was.

Arlene Dishman began working at Fruit in 1970. She said she had earned as much as $15 an hour — the equivalent of about $100 now — sewing necklines on V-neck T-shirts. “You can’t hardly turn that money down,” she said.

Her starting rate at Amazon was just $7.50 an hour, but she relished creating a digital outpost in Campbellsville. “We felt responsible for a lot of the success of Amazon,” she said. “We were just so proud.”

She became a trainer, worked with Mr. Bezos himself when he came to town, was promoted to management. These were years of turmoil at Amazon, as the dot-com bubble burst in the early 2000s. Pressure ramped up.

“I worked on the third floor,” Ms. Dishman said. “No air-conditioning. I would have people on the line pass out, constantly.”

As a manager, she said, she was too understanding, which was her undoing.

“I had worked with these people for so many years at Fruit that when a situation came up that management was not liking, I had a tendency to take the workers’ side,” she said. She left after three years.

David Joe Perkins, who worked for Fruit for 24 years and then for Amazon, said he also took pride in being part of the e-commerce start-up.

“We treated it like our company,” he said. “I have personally worked with Jeff Bezos. I actually liked the guy.”

What Mr. Perkins did not like were Amazon’s managers.

“My manager called me into the office one day and said, ‘Dave, your performance is not what it needs to be.’ I said, ‘How can I improve?’ He said, ‘You don’t fire enough people.’”

Several months later, Mr. Perkins was let go with little explanation.

Both Mr. Perkins, 64, and Ms. Dishman, 71, have Amazon Prime accounts. Ms. Dishman’s daughter works for Amazon as a data analyst. Ms. Dishman even thought about returning to the warehouse during last year’s holidays to earn a little Christmas money. She did not follow through.

Just about everyone in Campbellsville remains grateful to Amazon for coming and hiring people. Those workers take their paychecks and spend at least some of the money around town.

There are not as many workers as people think, though.

When Amazon arrived, it said it would employ 1,000 people full time within two years. That’s still the official total from the Kentucky Cabinet for Economic Development, a state agency, and in Mrs. Gorin and Jeremy Johnson’s two-volume history of the town, published this year. Team Taylor County, which solicits new industries for the community, puts the number of workers at 1,350.

Amazon said in October that the total was 655 full-time workers.

“I’m shocked,” Mrs. Gorin said.

Kelly Cheeseman, an Amazon spokeswoman, said the “head count started to shift” at the warehouse “around 2016 to 2017.” She said automation — the deepest fear of every community with an Amazon warehouse — had nothing to do with it.

“We regularly balance capacity across the network,” Ms. Cheeseman said. In November, Amazon said full-time workers had risen to 700.

Amazon said that the money it paid in wages was an investment in Campbellsville and that it had contributed “$15 million in taxes to Taylor County” over the last 20 years. It declined to break down the numbers further.

Records and interviews indicate that Amazon paid to the city school system about $350,000 in taxes this year. The company paid the county an additional $410,000 in property taxes.

Good Jobs First, the group that analyzes tax benefits for corporations, thinks that is not enough.

“What has Amazon really done for the community?” asked Greg LeRoy, the center’s executive director. “It’s not like it’s a tech lab, diffusing intellectual property or spinning off other businesses. It’s a warehouse.”

Ms. Allen, the mayor, wants more money to pay the town’s bills.

“The people in Seattle are getting rich,” she said. “They don’t care what happens to the people in Campbellsville, not really.”

In the 1970s and 1980s, life in Campbellsville revolved around Fruit. Townspeople learned not to be near downtown when the plant let out at 4 p.m. and traffic briefly became overwhelming. When Fruit shut down for the first two weeks in July every year, the town was so dead that other industries in the area scheduled their vacations for the same time. Fruit officials were active in the Chamber of Commerce, civic clubs and associations.

Amazon is not like that.

“Amazon is everywhere and nowhere,” Mrs. Gorin said. “This town runs on Amazon, but their employees are not in positions of political power.”

Amazon is linked into the community in other ways that often end up benefiting Amazon. In 2016, the company donated 25 Kindle Fire tablets to Campbellsville kindergarten and first grade classrooms. It also donated $2,500 in “content.” The town schools are increasingly buying supplies from Amazon for a total of about $50,000 in the last fiscal year, records show.

“We want to do business with those in our community, those paying local taxes,” said Chris Kidwell, finance director for Campbellsville Independent Schools. “It’s kind of a good-neighbor policy.”

The county school system, with 2,800 students, is dealing with state budget cuts. One way it has made up some of the shortfalls is by selling corporate sponsorships. Taylor Regional Hospital bought the naming rights to the health services room; Campbellsville University did the same for an education center. Amazon is not a corporate sponsor.

“We’re proud to have them in our community, and we would be proud to have them as a corporate sponsor,” said Laura Benningfield, the assistant superintendent.

Last spring, the local library was the recipient of a $10,000 gift from Amazon for science and technology education. Amazon planned to supply whatever the library wanted by ordering the material through its own site. As this article was being reported and Amazon was emphasizing what it had done for the town, the company just sent the library the cash.

“We’re on the receiving end of a blessing,” said Tammy Snyder, the town librarian. The library, like other public institutions in Kentucky, is dealing with the state’s largely unfunded pension system. Proposed changes that involve the library’s paying significantly more “will bankrupt us,” she said.

Justin Harden, 35, said he had no illusions about Amazon. He and his wife, Kendal, recently opened Harden Coffee, a popular meeting spot, on Main Street.

“If they can figure out a way to cut me out and take my business, they’ll totally do it,” he said. “They would destroy me, absolutely. But I am a 100 percent supporter of Amazon. I have five kids. We get stuff from Amazon almost every day.”

He paused, acknowledging his own contradictions. “That’s why they’re winning,” he said.

A pile of rubble on Campbellsville’s southern approach marks the ruins of the Fruit plant.

The property is owned by Danny and Sandy Pyles, commercial contractors who run an excavating company in nearby Columbia. They bought the textile factory with other investors a decade ago with the goal of building a retail complex called Campbellsville Marketplace.

The graffiti-covered shell was torn down, and a Louisville developer, Hogan Real Estate, cobbled together a deal. Kroger, the country’s largest supermarket chain, would close its two Campbellsville stores. It would then become the Marketplace anchor tenant with a 123,000-square-foot superstore.

Work was supposed to start within weeks. Then, on June 16, 2017, Amazon announced that it was buying the upscale grocery chain Whole Foods. Kroger shares slumped. Its deal in Campbellsville was put on hold, then abandoned. Hogan chased other possible anchors — Menards, Meijer, Home Depot — but none were interested. (Kroger declined to comment.)

“We used to talk about the Walmart Effect when you saw vacant storefronts in these small towns,” said Justin Phelps of Hogan. “Now it’s the Amazon Effect.”

Pyles Excavating is a good Amazon customer. The company needed a muffler recently for a track hoe. It would have cost $1,200 from a dealer. On Amazon, it was half that.

“The internet has brought the world to our fingertips,” Mr. Pyles said.

The Pyleses recently bought out the other investors in the Fruit site. Their investment is now more than $2 million.

“It really is a great piece of property, but right now it’s a reminder of the day Campbellsville literally shut down,” said Sandy Pyles, the daughter of a Fruit worker and relative of many others. “It’s a sadness.”

They would like a Whole Foods there, but know the town is too small to support it. Mr. Pyles has another idea: an Amazon Go store. These are experimental outlets with no cashiers.

That would put local competitors who still needed humans at a disadvantage while adding hardly any jobs. But it would be an investment by one of the world’s richest companies in one of the towns where it began.

“Amazon is the future,” he said. “We’d like to be part of that.”

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Angers (France) Demonstrations, Protests and Riots e-commerce Economic Conditions and Trends France Groupe Casino Labor and Jobs Shopping and Retail Uncategorized

Self-Checkout in France Sets Off Battle Over a Day of Rest

ANGERS, France — On a Sunday afternoon, customers at a Géant Casino supermarket browsed the aisles and lined up to buy meat, fish and other groceries. It was a typical shopping experience except for one thing: All the cashiers had gone home. Customers scanned items at automated checkout stations as security guards hovered nearby.

That the store was even open was unusual. French labor rules prohibit most shops from employing workers past 1 p.m. on Sundays. But as e-commerce and online giants like Amazon usher in an era of round-the-clock spending, retailers are amping up the use of automated cashiers to help them compete.

The move has caused an outcry in France, where Sundays are traditionally a rest day for workers and families. While self-checkout machines are often used alongside cashiers, labor unions say that tilting toward fully cashierless operations threatens the French way of life by encouraging American-style consumerism and automation, putting thousands of jobs at risk.

“Sundays are sacred,” said Patrice Auvinet, the head of the General Confederation of Labor union in Angers, a midsize city in western France. “If they change that, it will change French society. And if automated cashiers become normalized, it will have a catastrophic impact on workers.”

Groupe Casino, the country’s biggest supermarket operator, began testing Sunday-afternoon openings in August using only automated machines at the warehouse-size supermarket in Angers. It has expanded the experiment to at least 20 other megastores around the country, igniting raucous protests.

This week, Casino further riled unions by becoming the first supermarket chain in France to keep most of its stores open, including the one in Angers, on Christmas Day using only self-checkout machines. Casino said in a statement that it planned to do the same on New Year’s Day, and that the move was an extension of how it was already operating on Sunday afternoons.

President Emmanuel Macron paved the way for Sunday openings in 2015 when he was France’s economy minister, loosening regulation of business hours around Paris and other touristic areas to stimulate the economy. Unions fought the measures, citing labor rights won over decades.

But retailers say the restrictions that apply outside city centers have become a bind as e-commerce disrupts the retail landscape. As brick-and-mortar outlets lose sales to online merchants, companies say they must either compete or perish.

“The world is changing, and we’re in a very competitive environment,” said Sébastien Corrado, the marketing director of Groupe Casino. “The internet doesn’t have frontiers, so we need to adapt to new modes of consumption that let us stay in the game and be winners.”

Ringing up more profit is especially important for Groupe Casino, which also operates supermarkets in South America and Asia. It is restructuring billions of euros of debt after its holding companies recently entered a form of bankruptcy protection.

At the Angers store, which employs 115 in a working-class neighborhood, Groupe Casino is having salaried employees clock out as usual at 12:30 p.m. on Sundays, then bringing in security guards, hired through another company, to keep the store open through evening.

Groupe Casino had been operating 130 smaller stores in Paris and other cities using self-checkout machines to let consumers shop until midnight or even around the clock.

But Groupe Casino’s huge supermarkets, like the one in Angers, employ thousands, often on urban outskirts with limited job opportunities. That first Sunday afternoon in August, 200 demonstrators converged on the Angers store, chanting angrily and accusing the company of taking a big step toward replacing employees.

Chaos mounted when the protesters were joined by local members of the Yellow Vest movement, which arose last year to protest stagnating wages and declining living standards. Denouncing what they said was an erosion of workers’ living standards, they charged through the store, dumping produce in the aisles and heckling customers who were using the automatic checkout machines.

“Today is just the beginning, but tomorrow, who’s to say this won’t stop?” said Xavier Roche, a maintenance worker for another big supermarket chain, Carrefour, who joined the protests.

He is worried that Carrefour, which uses self-checkout at its convenience stores to stay open Sundays, will do the same at its larger markets. “First it’s Sunday afternoons, then it will be 24 hours a day,” Mr. Roche said.

Cashierless supermarkets are gaining ground around the world. Reducing cash payments and checkout time have become major goals for retailers that want to make the buying experience faster and more attractive while cutting labor costs.

Amazon pushed the boundaries by opening Amazon Go in the United States, a minimart where customers can buy items without any human interaction. Tesco is testing purely cashierless stores in Britain. Stores in China are increasingly using so-called facial payments, which lets shoppers pay by looking into a camera, after they have linked a photo of their face to a bank account. The facial payment technology eliminates the need for a wallet or mobile app.

Groupe Casino has not gone that far. But it is getting closer. Last year, it opened a gastronomic store off the Champs-Élysées in Paris that enables shoppers to buy everything from flowers to foie gras by using an app to scan the products and pay. Interactive displays show data on a product’s nutrition, price and popularity. For shoppers who cannot find the cheese, a voice-activated information screen gives directions to the right aisle. There are about a dozen workers who help customers and stock shelves, but no actual cashiers.

Tech-savvy and time-pressed customers have flocked to such services. “We’re meeting the needs of our clients,” said Mr. Corrado, the marketing director. “If we don’t have to close, then everyone wins because people get convenience and our sales increase. That also benefits our employees.”

That is hardly believable to workers who fear that opening all night at small stores, let alone Sunday afternoons at the big supermarkets, is a slippery slope to full automation and lost jobs.

Saliha Guechaichia, 47, grew anxious when the Géant Casino opened that first Sunday afternoon without her and the other cashiers, many of them single mothers with children. She began working at Casino 30 years ago, earning a modest income that helps her and her family get by.

“There used to be 22 registers with cashiers — now there are just 13,” Mrs. Guechaichia, a union member, said as she sat at a cafe opposite the store with a group of upset workers. Eight cashierless checkout stations were recently installed, she said, and more are coming.

“We’re worried,” she added. “This is no test — the machines are here for good.”

Younger workers find it easier to adapt.

“Machines can’t completely replace us,” said Arthur Hornoy, 20, a university student who works part time as a cashier to help pay for his studies. “For instance, we’re trained to recognize when someone might be stealing. A machine can’t do that.”

The bigger problem, Mr. Hornoy said, is that he wants to work more on Sundays to increase his earnings but cannot do so because of the labor laws.

“This isn’t taking jobs away, because we can’t work anyway,” he said. “I think if the company could have us work, they would, because the lines at the automated registers in the afternoon are huge.”

Even before the cashiers clocked out, those assigned to help customers scan items were overwhelmed. Marvim Bolina Naubir, another university student, zipped around a bank of self-checkout stations as shoppers peppered him with questions on how to use them.

“We are two people working eight automatic registers, when there could be six more cashiers,” Mr. Naubir, 21, said. “Older workers are especially concerned that machines used Sunday afternoons could stretch to the entire week, and then they would lose their jobs.”

Around 15,000 cashier jobs — almost one-tenth of the total — have disappeared in the past decade in France. While that is nowhere near the hundreds of thousands that unions warned would be shed, job losses are expected to mount as automation increases, said Mathieu Hocquelet, a labor sociologist at the Centre d’Etudes et de Recherches sur les Qualifications.

“These are precarious jobs, so there will be mass unemployment,” he said.

At the cafe, Mrs. Guechaichia and the other workers watched from a distance as customers filtered into the store. While townspeople were sympathetic, the protests had not kept away all shoppers. Groupe Casino said around 1,000 consumers were going there Sunday afternoons, bringing in significant sales.

Mr. Roche, the Carrefour maintenance employee, said the longer opening hours were just the start of a Western-style culture of overconsumption coming to France.

“We are opening on holidays and staying open 24 hours for businesses to make more money,” he said. “But workers’ salaries aren’t increasing, and people don’t have more money to consume.”

Declining purchasing power has been a central theme of Yellow Vest protesters in France, where the median monthly take-home pay is about 1,700 euros (about $1,900), meaning that half of workers make less than that.

Mrs. Guechaichia said no cashiers had yet been laid off. But employees no longer working at a cash register were being retrained for other tasks, such as stocking shelves and greeting customers.

How long those jobs will be around, she said, is anyone’s guess.

“Even if we give them flexibility, they will always ask for more,” she said. “All of the social achievements we’ve worked for are collapsing like a house of cards.”

Mélissa Godin contributed reporting.