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2 California supermarkets closing after city orders pay hike

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km1125
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2 California supermarkets closing after city orders pay hike

Post by km1125 » Tue Feb 09, 2021 12:53 pm

Coming to Michigan anytime soon?

I've seen/heard several comments about raising pay rates for 'front line' workers, which would include grocery stores. Could this be the result?

https://abcnews.go.com/Health/wireStory ... e-75636159
Kroger Co. will close two supermarkets in Southern California in response to a local ordinance requiring extra pay for certain grocery employees working during the pandemic

ByThe Associated Press
February 2, 2021, 9:22 PM

LONG BEACH, Calif. -- Kroger Co. will close two Southern California supermarkets in response to a local ordinance requiring extra pay for certain grocery employees working during the pandemic.

The decision announced by the company Monday follows a unanimous vote last month by the Long Beach City Council mandating a 120-day increase of $4 an hour for employees of supermarkets with at least 300 employees nationwide and more than 15 in Long Beach.

Kroger said it will close a Ralphs market and a Food 4 Less on April 17, the Press-Telegram reported.

“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,” the company said in a statement.

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.”

A city statement characterized Kroger’s decision as “unfortunate for workers, shoppers and the company.”

A $5-per-hour hazard pay wage increase was approved Tuesday by the Oakland City Council. In Los Angeles, the City Council voted to draft a similar ordinance.

Last week, Santa Clara County supervisors voted to draft a $5-per-hour measure, which could come up for a vote next week.

The Los Angeles suburb of Montebello previously approved a hazard pay measure and others are being considered in the L.A. suburb of Pomona and in San Jose and other San Francisco Bay Area cities.

Last week, Santa Clara County supervisors voted to draft an ordinance for a $5 hourly raise for some essential workers, including grocery store workers. It could come up for a vote next week.

A lawsuit filed by the California Grocers Association claims that the Long Beach ordinance interferes with the collective bargaining process between grocery stores and unions representing workers.

An association official said Monday that an increase of $4 an hour represents about a 28% increase in labor costs.

“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 association’s president and CEO Ron Fong said in a statement.

The Long Beach ordinance was approved during a Jan. 19 meeting in which council members and Mayor Robert Garcia said that many grocery stores gave employees hazard pay during the early stages of the pandemic but later phased it out.

“These folks that are working at these markets and these grocery stores are heroes,” Garcia said at the time. “This is nothing new. They have received this type of additional pay in the past and if they deserved it in the past, they deserve it today.”



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Re: 2 California supermarkets closing after city orders pay hike

Post by Rate This » Tue Feb 09, 2021 5:53 pm

km1125 wrote:
Tue Feb 09, 2021 12:53 pm
Coming to Michigan anytime soon?

I've seen/heard several comments about raising pay rates for 'front line' workers, which would include grocery stores. Could this be the result?

https://abcnews.go.com/Health/wireStory ... e-75636159
Kroger Co. will close two supermarkets in Southern California in response to a local ordinance requiring extra pay for certain grocery employees working during the pandemic

ByThe Associated Press
February 2, 2021, 9:22 PM

LONG BEACH, Calif. -- Kroger Co. will close two Southern California supermarkets in response to a local ordinance requiring extra pay for certain grocery employees working during the pandemic.

The decision announced by the company Monday follows a unanimous vote last month by the Long Beach City Council mandating a 120-day increase of $4 an hour for employees of supermarkets with at least 300 employees nationwide and more than 15 in Long Beach.

Kroger said it will close a Ralphs market and a Food 4 Less on April 17, the Press-Telegram reported.

“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,” the company said in a statement.

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.”

A city statement characterized Kroger’s decision as “unfortunate for workers, shoppers and the company.”

A $5-per-hour hazard pay wage increase was approved Tuesday by the Oakland City Council. In Los Angeles, the City Council voted to draft a similar ordinance.

Last week, Santa Clara County supervisors voted to draft a $5-per-hour measure, which could come up for a vote next week.

The Los Angeles suburb of Montebello previously approved a hazard pay measure and others are being considered in the L.A. suburb of Pomona and in San Jose and other San Francisco Bay Area cities.

Last week, Santa Clara County supervisors voted to draft an ordinance for a $5 hourly raise for some essential workers, including grocery store workers. It could come up for a vote next week.

A lawsuit filed by the California Grocers Association claims that the Long Beach ordinance interferes with the collective bargaining process between grocery stores and unions representing workers.

An association official said Monday that an increase of $4 an hour represents about a 28% increase in labor costs.

“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 association’s president and CEO Ron Fong said in a statement.

The Long Beach ordinance was approved during a Jan. 19 meeting in which council members and Mayor Robert Garcia said that many grocery stores gave employees hazard pay during the early stages of the pandemic but later phased it out.

“These folks that are working at these markets and these grocery stores are heroes,” Garcia said at the time. “This is nothing new. They have received this type of additional pay in the past and if they deserved it in the past, they deserve it today.”
That was just the excuse they needed to pull out. Those stores were probably barely braking even. Which means they were likely already in trouble.



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Re: 2 California supermarkets closing after city orders pay hike

Post by audiophile » Tue Feb 09, 2021 7:36 pm

Perhaps, but why does government do stupid things like this.


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Re: 2 California supermarkets closing after city orders pay hike

Post by tapeisrolling » Tue Feb 09, 2021 9:03 pm

It's good PR to call the workers during a pandemic 'hero's'. Then when it's time to reward them for possibly sacrificing their health or possibly lives, it's a different story. I don't think Kroger will be pushed to bankruptcy by paying a little more in several stores.

Operating Profit of $820 million; Adjusted FIFO Operating Profit of $894 million, up 43% compared to prior year.

W. Rodney McMullen, Chief Executive Officer, received $21M in total, which increased by 76% compared to 2018. 40% of McMullen's compensation, or $8.4M, was in stock awards. McMullen also received $7M of change in pension value and nonqualified deferred compensation earnings, $2M in non-equity incentive plan, $2.1M in option awards, $1.3M in salary, as well as $349K in other compensation.

For fiscal year 2019, the median employee pay was $26,790 at Kroger. Therefore, the ratio of W. Rodney McMullen's pay to the median employee pay was 789 to one.
$5 extra per hour is just too much to deal with.......



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Re: 2 California supermarkets closing after city orders pay hike

Post by MWmetalhead » Wed Feb 10, 2021 7:09 am

Sounds like the stores in question were already unprofitable. They were probably going to shutter at some point in the not too distant future in any event. This move simply accelerated the decision to close.



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Re: 2 California supermarkets closing after city orders pay hike

Post by MotorCityRadioFreak » Wed Feb 10, 2021 8:44 pm

A lot of Ralph's stores were doing poorly. Californians vote with their money. And when they see that stores treat their employees like crap, Californians vote with their feet.


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Re: 2 California supermarkets closing after city orders pay hike

Post by audiophile » Thu Feb 11, 2021 8:40 am

Where is your proof?

Oh, that's explains the mass Exodus from California. :rollin


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Re: 2 California supermarkets closing after city orders pay hike

Post by MotorCityRadioFreak » Thu Feb 11, 2021 8:57 pm

Yes, they left because of Gavin Newsom who got absolutely insane with his shut downs. The number of infections were low in March/April, and he insisted on curfews when there was no need. California was not like Michigan with their death rates either. As Disneyland is mostly outside, there was no reason to have it closed the entire time of the crisis.


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Remember that “2000 Mules” was concocted by a circus of elephants.
The right needs to stop worry about what’s between people’s legs. Instead, they should focus on what’s between their ears.
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Re: 2 California supermarkets closing after city orders pay hike

Post by MasterB » Fri Feb 12, 2021 12:08 am

I think a lot leave Cal because of too high of the taxes in the state Gavin Newsome is a tyrant and Disneyland should be open since Disneyworld is open so can Disneyland and Disney should sue the state to reopen Disneyland. Sounds like the supermarkets weren't doing well anyway and just speed up the closing as MWmetalhead said.


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Re: 2 California supermarkets closing after city orders pay hike

Post by Rate This » Fri Feb 12, 2021 12:26 pm

MotorCityRadioFreak wrote:
Thu Feb 11, 2021 8:57 pm
Yes, they left because of Gavin Newsom who got absolutely insane with his shut downs. The number of infections were low in March/April, and he insisted on curfews when there was no need. California was not like Michigan with their death rates either. As Disneyland is mostly outside, there was no reason to have it closed the entire time of the crisis.
Half of the measures here then were unnecessary as well. They blew the Initial reaction here badly.



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Re: 2 California supermarkets closing after city orders pay hike

Post by MWmetalhead » Sat Feb 13, 2021 6:40 am

I think a lot leave Cal because of too high of the taxes in the state Gavin Newsome is a tyrant...
California has been a high tax state forever; never stopped residents and tech oriented companies from flocking there in droves. The state has finally reached the tipping point, it would appear.

Home prices are sky high. Those who have stayed in the same home 20, 30, 40 years probably want to cash out and live somewhere more affordable and less crowded. Even in Oakland - yes Oakland - the average home value is $700,000!!! That same average house just 20 years ago would've been valued at roughly $200,000.

In Michigan, home values in high crime rust belt urban corridors will never come remotely close to the prices being witnessed in Oakland, CA.

Anyone who is a middle income earner in California either is forced to rent or purchase a home in an undesirable interior community where crime is probably high and where the climate is desert-like.

When it comes to attracting new residents, new businesses, and creating economic growth over the long haul, California exceeds Michigan by stratospheric leaps & bounds.



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Re: 2 California supermarkets closing after city orders pay hike

Post by Rate This » Sat Feb 13, 2021 5:15 pm

MWmetalhead wrote:
Sat Feb 13, 2021 6:40 am
I think a lot leave Cal because of too high of the taxes in the state Gavin Newsome is a tyrant...
California has been a high tax state forever; never stopped residents and tech oriented companies from flocking there in droves. The state has finally reached the tipping point, it would appear.

Home prices are sky high. Those who have stayed in the same home 20, 30, 40 years probably want to cash out and live somewhere more affordable and less crowded. Even in Oakland - yes Oakland - the average home value is $700,000!!! That same average house just 20 years ago would've been valued at roughly $200,000.

In Michigan, home values in high crime rust belt urban corridors will never come remotely close to the prices being witnessed in Oakland, CA.

Anyone who is a middle income earner in California either is forced to rent or purchase a home in an undesirable interior community where crime is probably high and where the climate is desert-like.

When it comes to attracting new residents, new businesses, and creating economic growth over the long haul, California exceeds Michigan by stratospheric leaps & bounds.
As much as it’s trashed by Republicans it’s the 4th largest economy IN THE WORLD or something. You don’t get that way by accident.



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Re: 2 California supermarkets closing after city orders pay hike

Post by MWmetalhead » Sun Feb 14, 2021 8:30 am

I thought it was #8 or #9, but you are right.



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Re: 2 California supermarkets closing after city orders pay hike

Post by Rate This » Sun Feb 14, 2021 9:03 am

MWmetalhead wrote:
Sun Feb 14, 2021 8:30 am
I thought it was #8 or #9, but you are right.
You are correct it is 8 or 9. I have 4 on the brain for some reason regarding this stat.



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Re: 2 California supermarkets closing after city orders pay hike

Post by audiophile » Sun Feb 14, 2021 11:00 am

Silicon valley. Without it, then it falls off the map.


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