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IPFS News Link • Minimum Wage

California: 2 Kroger stores close after 'Hero Pay' ordinance approved

• The BL

A spokesperson for Kroger said in February that the Long Beach City Council's "misguided action" in passing the ordinance had overstepped "the traditional bargaining process" and "only applies to some, but not all, grocery workers in the city," according to FOX Business.

"Despite our efforts to overcome the challenges we were already facing at these locations, the extra pay mandate makes it impossible to run a financially sustainable business…," Kroger said in a statement.

Next May 12 might see the closing of another three Los Angeles stores of the company with "hero pay" as the leading factor.

Due to the dangers of the COVID-19 pandemic, Democratic Mayor Robert Garcia endorsed hero pay ordinances in January, which increases pay for staff in retail stores and pharmacies with 300 or more employees.