LONG BEACH, Calif. (CNS) -- Grocery company Kroger announced on Monday it will be shuttering two of its stores in Long Beach -- a Ralph's location and a Food4Less store -- in response to a city ordinance requiring a $4 "hero pay'' salary boost for some workers.
"As a result of the city of Long Beach's decision to pass an ordinance mandating extra pay for grocery workers, we have made the difficult decision to permanently close long-struggling store locations in Long Beach,'' according to a company statement. "This misguided action by the Long Beach City Council oversteps the traditional bargaining process and applies to some, but not all, grocery workers in the city." .... The Long Beach City Council last month gave initial approval to a law requiring large grocers to pay its workers an extra $4 an hour in "hero pay'' for their work during the COVID-19 pandemic. The law applies to companies with 300 or more workers overall and more than 15 employees per location in Long Beach.
The problem with those locations isn’t that the workers now make $4/hour more. It’s that so many of their “customers” don’t bother to pay for their groceries. I know Long Beach, fairly well. There are good spots and bad spots to have a business.
I am actually having a serious conversation with an old girlfriend online about why raising the minimum wage is not always good. She does not seem to understand that if you raise it enough, jobs will necessarily be lost.
https://abc7.com/business/grocery-stores-closing-in-long-beach-over-hero-pay/10223967/?fbclid=IwAR1yCkfyg28g_cYYwzgaDmvNaTtvo9ijmKXwiCsHawHbK27TN0Dw8PgNm2s