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CBS LA: Grocers Study – Extra Pay Mandates To Raise Prices $400 Annually For Families

LOS ANGELES (CBSLA) – As the city of Los Angeles considers a plan to mandate in hazard pay for grocery workers and others working during the coronavirus pandemic, a state grocers trade group is warning prices could soar higher if such a plan is adopted.

A new study released Thursday by the California Grocers Association found that extra pay mandates of up to $5 per hour for grocery workers could raise consumer grocery prices by about $400 annually for the typical family of four.

The study evaluated how extra pay proposals in the cities of Long Beach – which passed earlier this month – and Los Angeles would impact grocers, workers and their customers.

According to the study, the extra pay mandate in L.A. would raise grocers’ labor costs by about 28 percent and would be twice the size of the of the 2020 industry profit margin and three times the historical grocery profit margins.

View the full article in CBSLA