This debate of Kroger which is largest and finest grocery chains in United States have closed many stores and refuse to pay their workers hero pay. Workers’ protest announces the closure of the Kroger store amid the “Hero’s Salary” decree.
A large group of protesters gathered Thursday afternoon amid the announced closure of Food 4 Less in East Hollywood. It is one of three Kroger stores in the Los Angeles area due to close due to “Hero Pay” law. In response, Kroger issued the following statement:
They said that “Ralphs and Food 4 Less has made the tough decision to shut down three of its 68 Los Angeles locations. The closings follow a Los Angeles City Council mandate that requires a select group of employers to provide additional pay to frontline workers, but not all companies. Which hires frontline workers.
The mandate will add an additional $ 20 million to operating costs over the next 120 days, making the continued operation of the three underperforming sites financially unsustainable despite our efforts to overcome the challenges we were facing.
Already in these locations, the overpayment mandate makes it impossible to run a financially sustainable business that ensures our ability to continue serving the Los Angeles community in those three locations with reliable access to fresh, affordable groceries and other essentials. In Los Angeles and we remain committed to our dedicated front-line partners who serve 65 other companies’ physical locations. ”
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Previously, Kroger proclaimed on March 10 that it was closing its Food4Less 5420 W. Sunset Blvd. And two Ralphs stores, one at 9616 W. Pico Blvd. The other is at 3300 W. Slauson Ave., On May 15th. Kroger said the three stores were “underperforming”. The chief legislative analyst in Los Angeles decided that the potential economic effects of the law include temporary increases in labor costs as a percentage of company sales, potential higher prices for consumers, possible delayed store openings, renewals, pay raises or promotions for employees, and potential stress. On distressed stores that may lead to store closures and reduced working hours for some employees.
However, the CLA also decided that higher wages could also benefit other businesses in the city, as more people would have extra money to buy additional items. It can also help people pay off their debts and increase their savings Now, what are your thoughts on it? Let us know about it? In the comment section below!