Kroger is closing two grocery stores, Ralphs and Food 4 Less, in Long Beach, California, after the city voted to ask the supermarket company to give employees an additional $ 4 an hour in the event of a pandemic hazard.
“Following the decision of the city of Long Beach to adopt an ordinance requiring additional payment for food workers, we made the difficult decision to permanently close the outlets of stores in Long Beach,” the company said. he said in a statement the Press-Telegram. “This wrong action by the Long Beach Local Council goes beyond the traditional negotiation process and applies to some, but not all, of the city’s food workers.”
The ordinance, which was approved on January 19, stipulated that any grocery store with 300 employees nationwide and 15 employees in Long Beach should offer their employees an additional $ 4 per hour for 120 days due to the coronavirus pandemic.
“Kroger’s decision is unfortunate for workers, buyers and the company,” the city said in a statement.
After approval of the ordinance, The California Grocers Association has filed a lawsuit against the city, saying it disrupts the collective bargaining process.
“An increase of 4 USD / hour represents an increase of approximately 28% in labor costs for grocers. There is no way that the grocers can absorb such a large increase in costs without compensation elsewhere, given that the grocers operate with thin edges and many stores are already operating in the red, ”said President and CEO Ron Fong of California Grocers Association. “Long Beach City Council has put politics ahead of families and jobs in the midst of a pandemic. This was completely avoided. ”
Other areas of California are also looking to get employers to pay their employees during the pandemic. Montebello City Council passed an ordinance similar to the Long Beach Ordinance, which required large grocery stores to pay an additional $ 4 per hour for the next 180 days. The Los Angeles City Council will soon consider a similar proposal, the Press-Telegram reported.
Ralphs’ director of corporate affairs, John Votava, told reporters that other stores may close if the ordinances are approved. “These wrong warrants could jeopardize the closure of any struggling store,” Votava said.
At the national level, there is a struggle to raise the federal minimum wage. President Biden said he supports a $ 15 minimum wage mandated by the federal government.