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February 1, 2010
Costco misses mark in Harlem
Imposes big layoffs as logistics of bulk buys confound Manhattanites
Crain's NY Business
by Adrianne Pasquarelli
Here's a must-read piece (if you've signed a Community Benefits Agreement with Forest City Ratner).
After opening a store in late November with promises of jobs and economic revival for the community of East Harlem, warehouse club Costco Wholesale Corp. terminated 160 of its 453 workers there last month in order to cut costs.
“That's a lot of people,” says Matthew Washington, chairman of the neighborhood's Community Board 11, adding that the area's unemployment rate is 17%. “At a time when many are hurting, we want people to be working: They have families to take care of.”
...Costco's relationship to its Manhattan neighborhood is also important because of the community benefits agreement signed last March by developer Tiago, a partnership between Forest City Ratner Cos. and Blumenfeld Development Group. Tiago promised city officials that Costco would make a good-faith effort to ensure that this year, at least 60% of workers at the Manhattan location come from the area. The proportion for the third year of operation is 75%.
After the recent layoffs, Mr. Washington of the local community board suggested that Costco work with the city's Human Resources Administration and its federal stimulus funds to rehire some employees, but he has yet to receive a response from the company.
Posted by eric at February 1, 2010 12:41 PM