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Monday, April 19, 2021
Kroger Grocery Store Chain Closes 2 Southern California Stores Over $4 Per Hour Hero Pay Ordinance
Retail grocery store chain Kroger closed two California stores Saturday after Long Beach City approved a coronavirus hero pay ordinance, reports Fox Business.
Hero pay ordinances in the city require retail stores and pharmacies with 300 or more workers to pay those workers an additional $4.00 per hour hero pay.
Democratic Mayor Robert Garcia approved the ordinance in January.
The company also plans to close three Los Angeles locations on May 12, citing a mandated $5.00 per hour hero pay as the leading factor for its decision. The mandate will add an additional $20 million in operating costs over the next 120 days, making it financially unsustainable to continue operating the three underperforming locations, Kroger said in a statement.
Retail chain Kroger closed two California stores Saturday after Long Beach City approved a coronavirus “hero pay” ordinance.
Hero pay ordinances bump pay for workers in retail stores and pharmacies with 300 or more workers due to the hazards of the COVID-19 pandemic. In Long Beach, eligible workers have seen a $4 per hour increase in their wages.
Democratic Mayor Robert Garcia approved the ordinance in January. Other cities in California have taken similar measures, with Los Angeles approving “hero pay” in March at $5 an hour.
In response, Kroger started to close stores in cities where “hero pay” ordinances exist. The retail chain first announced intentions to close two Long Beach locations in February, stirring protests from workers and union members.
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