OFFICE DEPOT TO OUTSOURCE 80 JOBS TO INDIA AND GUATEMALA

[Anonymous]

OFFICE DEPOT TO OUTSOURCE 80 JOBS TO INDIA AND GUATEMALA

Office Depot explains job situation in letter to county
If you’ve read The Post in recent weeks you know Office Depot ruffled feathers at county offices when it announced plans to outsource 80 jobs to India and Guatemala — not surprisingly. The county made a deal with the office supply retailer to give it a property tax break to stay here — possibly worth $650,000 a year. The state pledged $8.7 million.

County Commissioner Burt Aaronson, specifically, took issue with the outsourcing. Despite a trip to Boca Raton last week to talk to Office Depot CEO Neil Austrian, the two are still not on the same page.

Here’s the letter Austrian sent this week as a follow up.
From the letter: In 2009, Office Depot executed an Agreement with Palm Beach County whereby the County agreed to reimburse us a percentage of our ad valorem taxes paid in consideration for meeting the following requirements: (i) a minimum $210,000,000 capital investment in our new headquarters facility; (ii) a minimum average annual wage requirement of twice that of the county average; and (iii) a minimum of 1,750 jobs at our headquarters with at least 200 additional jobs to be added by August of 2014. Through 2009 and 2010, Office Depot has met its requirements under the Agreement.

Yesterday, Aaronson said he’s still against the company’s outsourcing plans, but admitted Office Depot is in compliance with its county economic development agreement. For now.

Aaronson: To oursource when the’re getting state and county money for me was the wrong move to make and doesn’t set a good example for next” corporate entity wanting economic development funds. They say they are creating jobs, but the audit doesn’t come to us until March.

Still, any corporate headquarters based in Palm Beach County is a boon to the economy, so Aaronson hopes Office Depot stays on track. The company is facing tremendous competition in the retail market from cheaper big boxes, like Walmart, and it and fellow office supply chains are suffering.

Columnist Frank Cerabino talked to Commissioner Abramson as well and had a bit of fun with the topic:  Palm Beach County has unwittingly gotten mixed up in creating new jobs in Guatemala.

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August 9, 2011 at 8:10 AM