Supermarket retailer Kroger announced it will close three more of its Los Angeles grocery stores because of the City Council’s new “Hero Pay” law requiring an extra $5 per hour for workers.
Kroger was already paying associates in Los Angeles $18 per hour and with healthcare benefits it actually came out to $24 per hour!
Two Ralphs stores — at 9616 West Pico Blvd. and 3300 West Slauson Ave. – and a Food 4 Less at 5420 W. Sunset Blvd. will be shut down on May 15, according to Kroger, CBS reported.
“It’s never our desire to close a store, but when you factor in the increased costs of operating during COVID-19, consistent financial losses at these three locations, and an extra pay mandate that will cost nearly $20 million over the next 120 days, it becomes impossible to operate these three stores,” Kroger said in a statement.
Last month Kroger was forced to close two of its stores in Long Beach, California after the city council passed a mandate requiring companies with more than 300 employees to pay workers an extra $4 per hour.
Ralphs and Food 4 Less in Long Beach, owned by the parent company Kroger will be closing on April 17 due to the oppressive ordinance.
Kroger also closed two Seattle stores because of the mandated “Hazard Pay.”
Kroger said it invested more than $1.3 billion since March to implement Covid safety measures and compensate employees.
This is just a taste of what’s to come with Joe Biden’s federal minimum wage increase to $15 per hour.
