Why Kroger US supermarket chain closes stores following a risk-reward rules?


According to the recent news Kroger, the largest supermarket chain in the US, laying off staff after passing a local risk allowance law in Los Angeles. Previously, Kroger have been closing many stores due to “hazard pay”.


Kroger, the largest supermarket chain in the United States with hundreds of millions of dollars in profit, is shutting down grocery stores. While, laying off scores of employees in response to domestic risk-allowance rules for essential workers even as the coronavirus pandemic continues.

Why Kroger US supermarket chain closes stores following a risk-reward rules

Maria Hernandez worked at Ralph’s grocery stores for 25 years before recently finding out that her store was closing. I have worked through the epidemic and discovered the Coronavirus in May 2020. Still experiencing long-term effects from it, I have dealt with panic attacks and anxiety over stress placed on essential workers.

Some of the worker said that “Why are they punishing us?” Hernandez said. “If it wasn’t for us, they wouldn’t be able to run stores. As a person we have value. As workers we have value. They don’t seem to care about you as a human being. They don’t care.” In response to a local ordinance passed by Los Angeles City Council on March 3 to grant frontline workers at major employers a $ 5 per hour increase in risk allowance for a period of 120 days, Kroger announced plans to close three grocery stores in the city, eliminating more than 250 jobs.

While, the Kroger claimed that the decision to shut down Food4Less and two Ralphs stores was due to poor performance at the sites. Tina Jones, a courtesy clerk at one of Ralphs grocery stores slated to close, argued that the decision was retaliation against workers and the wage bill. “If this store had been a low fulfillment, it was running short before the pandemic. It should have closed after that. Why are they waiting until now to close it?” Jones said. Because none of these Kroger executives give us their annual bonus so we can get $ 5 an hour? No, they’re sitting in their pretty homes in the hills or wherever they live, and they tell us we’re not worth an extra $ 5 an hour.” “.

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In addition, another employee Ms. Jones also lives and grew up near her workplace in Ralphs. She worries about the impact the closing of the grocery store will have on society, especially needy customers, like the couple of regular blind customers she helps with grocery shopping. She earns $ 15.30 an hour, 30 cents more than the current minimum wage per hour in Los Angeles, and explains that she and her colleagues have struggled at work during the pandemic, from dealing with large influxes of customers in stores, customers who don’t wear masks, and a lack of personality. . Protective equipment and the Coronavirus outbreak. “I think all of us earned $ 5 an hour,” Jones added. “For Kroger to say we’re all a family, well, they’re throwing their families out on the street.

Kroger closed two grocery stores in Long Beach after $ 4 an hour had passed by paying the risk allowance. In February 2021, Krueger also shut down two grocery stores in Seattle after Seattle City Council passed the $ 4-an-hour Local Risk Allowance Act for grocery workers. With demand for groceries soaring due to the Coronavirus pandemic, Kroger Corporation announced an operating profit of $ 2.8 billion in 2020, up from $ 2.25 billion in 2019. Kroger’s sales continued to outperform for 2019, with sales increasing by more than 10% in the last quarter. Now, what is your take on this? Let us know in the comment section below!

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