Categories
News

CGA Press Release: ICYMI – Southern California News Group Opposes Extra Pay Mandates

Contact: Nate Rose, Senior Director of Communications, CA Grocers Association [email protected]

Says: ‘Hero pay’ proposals will lead to unintended consequences

Sacramento – The Southern California News Group said “real jobs are at risk” when itweighed in against extra pay mandates currently being discussed by cities in California.

Noting that “The biggest current threat to the supply chain comes from these proposals. Not many industries can endure a government-imposed labor increase of as much as 33%,” it urged cities to reject these proposals, otherwise both consumers and workers would lose.

Below are some quotes from the editorial, ‘Hero pay’ proposals will lead to unintended consequences

  • “We’re not sure why people were shocked by the predictable outcome of Long Beach’s decision to dramatically boost the hourly pay of grocery workers during the pandemic. After the vote, Kroger announced the shuttering of “long-struggling” Ralphs and Food 4 Less locations.”
  • “That mandate ends up hurting hourly workers and the customers who relied on those stores to buy groceries.”
  • “The biggest current threat to the supply chain comes from these proposals. Not many industries can endure a government-imposed labor increase of as much as 33%. A study commissioned by the California Grocers Association (CGA) found that Los Angeles’ $5-an-hour proposal ‘would be twice the size of the 2020 industry profit margin and three times historical grocery profit margins.” Grocers can’t stay in business if they’re losing money.’”
  • “Everyone appreciates that grocery store workers have been showing up at their jobs despite the spreading pandemic, but it makes no sense to reward them with unaffordable wage boosts that will only precipitate stores’ move toward automation.”
  • “Real jobs are at risk.”
  • “… the public deserves to know that there’s no such thing as a free lunch. These “hero” pay proposals will only destroy profit margins, which will shutter grocery stores, obliterate jobs and drive up food prices.”