Two Stores In California Forced To Close After City Ordinance Requires Covid Pay Increase

Two California Grocery Stores Are Being Forced To Close Their Doors After A Local Ordinance Required They Raise The Pay Of Employees Who Worked During Covid.
The Stores That Are Closing Are Ralphs And Food For Less.

Kroger Made The Announcement
After The Unanimous Vote Last Month By The Long Beach City Council.

The Vote Mandated That The Grocery Stores Have To Pay Their Workers An Extra $4 An Hour. For At Least Four Months, For Supermarkets With More Than 15 Employees In Long Beach, And 300 Nationwide.

The Association’s President And Ceo Ron Fong Said That The Increase Would Raise Labor Costs Nearly 30%, Saying
“There’s No Way Grocers Can Absorb That Big Of A Cost Increase Without An Offset Somewhere Else, Considering Grocers Operate With Razor Thin Margins And Many Stores Already Operate In The Red,”

The Statement Added: “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.”

Other Cities In California Are Following Suit, A $5-per-hour Was Approved By The Oakland City Council. Same Thing In Los Angeles.

The California Grocers Association Has Filed A Lawsuit.