LOS ANGELES (CBSLA) – Kroger closes three more stores in Los Angeles after the city passed an ordinance on “hero pay” that demanded a $ 5 salary for grocery and pharmacy workers.
Two Ralphs stores: at 9616 West Pico Blvd. and 3300 West Slauson Ave. – and a meal 4 Less at 5420 W. Sunset Blvd. will close on May 15, according to Kroger. The company said Wednesday that all three stores were no longer functioning well and that the Los Angeles mandate accelerated their closure.
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(Photo by Brittany Murray / MediaNews Group / Long Beach Press-Telegram via Getty Images)
“We never want to close a store, but if you take into account the increase in operating costs during COVID-19, constant financial losses in these three locations and an extra payment order that will cost almost $ 20 million over the next 120 days, it becomes impossible to operate these three stores, ”Kroger said in a statement.
It is unclear how many workers will be laid off when the three stores close in May. But Kroger said it would provide the mandatory extra pay to all associates, including those working at the three locations planned to close.
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Kroger says his Ralphs and Food 4 Less associates in Los Angeles already earn $ 18 an hour. With health care and pension benefits, his total compensation comes to $ 24 per hour, according to Kroger. The grocery store giant claims it has also invested $ 2.5 billion to reward its partners and implement security measures since the start of the pandemic, and recently issued $ 50 million in rewards to frontline partners. .
The company also noted its efforts to vaccinate its front-line workers as quickly as possible, and announced three vaccination clinics that will take place this week for its associates in Los Angeles. Kroger, which offers a $ 100 vaccination reward to its employees, says nearly 20 percent of its associates have received the first dose or are fully vaccinated.
“Prioritizing vaccinations (not arbitrary extra pay mandates) is what will keep front-line workers protected,” a Kroger spokesman said in the statement.
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Kroger has been fighting for hazard compensation mandates approved by several municipalities in recent months. In Long Beach, the company has already announced the closure of two stores in response to the ordinance on the “pay of heroes” of this city.