- Retailer Kroger announced on Monday that it would permanently close two of its Southern California stores due to what it says is a direct result of a city mandate that requires an extra $4 an hour of "hero pay" for essential workers.
A spokesperson for the grocery company told FOX Business on Tuesday that Long Beach's City Council's "misguided action" in passing an ordinance mandating Extra Pay had overstepped "the traditional bargaining process" and "only applies to some, but not all, grocery workers in the city."
The irreparable harm that will come to employees and local citizens is a direct result of the City of Long Beach's attempt to pick winners and losers, is deeply unfortunate," they said. "We are truly saddened that our associates and customers will ultimately be the real victims of the city council's actions."
The Ralphs store at 3380 N. Los Coyotes Diagonal and Food 4 Less store located at 2185 E. South Street are both set to shut down on April 17, 2021.
The Long Beach City Council -- backed by Democratic Mayor Robert Garcia -- gave approval to the "hero pay" law in January...
...Replying to his tweet, Garcia screenshotted a report from The Brookings Institution -- a Washington, D.C., public policy nonprofit -- that noted Kroger had ended its initial $2 "hero pay" in May despite "doubling its profits and spending nearly a billion dollars in 2020 to buy back its own stock shares."
"When large corporations make record profits and double their earnings -- they need to share that success with those providing the labor. Period," the mayor tweeted on Tuesday, later commending the Los Angeles City Council for supporting $5 "hero pay" for both grocery and drugstore workers...
Kroger closes 2 Southern California stores rather than give extra $4 '''Hero Pay’ | Fox Business