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Tomorrow, the Los Angeles City Council will consider directing staff to draft an ordinance known as "hazard" or "hero" pay. Only applying to grocery stores, the ordinance would require an additional $5/hr be applied to their employees for the next 120 days. Read the motion here.
The City of Long Beach passed a similar ordinance requiring grocers to pay an additional $4/hr to their workers. Today, Kroger announced two of their stores will be closing as a result, leading to hundreds of layoffs. Read the full story here.
We agree that grocery store workers are frontline workers. And although the intent is noble, an economic impact study should be completed before requiring grocers to pay an additional 30+% in payroll costs. Not doing so could lead to higher costs for consumers, less hours for workers or, as is the case in Long Beach, closures of stores.
BizFed submitted a letter highlighting our concerns with the motion. We encourage our members to do the same.
Letters can be submitted here.
We also encourage you to call into the LA City Council Meeting and let your voice be heard on this issue.
DETAILS:
WHAT: LA City Council Meeting
WHERE: https://www.lacity.org/government/follow-meetings/city-council-meetings
WHEN: 10am, comment line will open earlier
HOW: To make public comment call 1 669 254 5252 and use Meeting ID No. 160 535 8466 and then press #. Press # again when prompted for participant ID. Once admitted into the meeting, press *9 to request to speak. The agenda item is 19.
We hope you found this information valuable. If you have any questions on this issue, please contact sarah.wiltfong@bizfed.org.
Sincerely,
Founding CEO, BizFed
BizFed launched in 2008 and now unites more than 245 diverse business organizations. BizFed’s 150 investors include micro-businesses to iconic brands and institutions.