Amazon will close its warehouse in Homestead, putting over 600 jobs at risk



Amazon (Reference image)Photo © CiberCuba / Sora

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Amazon will temporarily close its warehouse in Homestead, located in the southwest of Miami-Dade, on July 2, putting the jobs of 616 workers at risk and sparking a legal dispute with the county over an alleged breach of contract, according to Telemundo.

The company submitted a formal notice on April 17 under the Worker Adjustment and Retraining Notification Act to the Florida Department of Commerce, in which it classified the closure as temporary for the purpose of renovating the facility and transforming it into a larger-scale fulfillment center.

However, the document itself warns that the employee separations resulting from this action are expected to be permanent, a contradiction that heightens the concerns of workers and local authorities.

Amazon offered affected employees the option to relocate to eight other centers in Miami-Dade or up to 30 facilities in South Florida, with relocation bonuses for those moving more than 50 miles away. More than 300 of the 616 workers have already accepted transfers to other company facilities.

The company estimates that the renovations will take two years, with a planned reopening in mid to late 2028 and a projected workforce of approximately 1,000 employees, which is higher than the current number.

The closure directly conflicts with an agreement signed in September 2020 between Amazon and Miami-Dade County, whereby the county sold the land to the company for 22 million dollars. In exchange, Amazon committed to creating and maintaining at least 325 permanent jobs with a minimum average salary of 32,000 dollars per year, an obligation that, following an amendment approved in November 2023, must be upheld for 21 years.

The land was originally transferred by the United States Air Force to the county at no cost, with the explicit purpose of promoting economic development in the area of the former Homestead Air Reserve Base. This is not the first time Amazon has faced difficulties in fulfilling that commitment: in 2023, the company already requested a 12-month extension citing macroeconomic issues such as supply chain disruptions and inflationary pressures.

On April 21, the county formally presented a resolution aimed at compelling Amazon to comply with the agreement, spearheaded by Commissioner Danielle Cohen Higgins of District 8. Potential penalties include a fine of $8,000 for each job below the minimum requirement of 325, which could total up to $2.6 million, in addition to possible property taxes if the fines are not paid.

The resolution directs Mayor Daniella Levine Cava to report on the status of compliance within 30 days and for the county attorney to take any necessary legal action. As of the close of this edition, the resolution still required approval from the full commission.

"When it comes to the private, profit-driven use of county land —public land— promises must be kept," declared Commissioner Cohen Higgins. "Amazon made a binding commitment to create and maintain jobs in South Dade. I am simply demanding that they fulfill it."

Amazon, for its part, noted that Amazon is seeking a cooperative path with the county, while Homestead, a community with a high dependence on jobs in logistics and manufacturing, awaits a resolution that will determine the employment future of hundreds of families.

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CiberCuba Editorial Team

A team of journalists committed to reporting on Cuban current affairs and topics of global interest. At CiberCuba, we work to deliver truthful news and critical analysis.