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The national grocery giant is closing one of its Ralphs stores, located at 3380 N. Los Coyotes Diagonal, and one Food 4 Less store, located at 2185 E. South St. The permanent closures will happen April 17, the company said, adding that the stores were “long struggling” locations.
“This misguided action by the Long Beach City Council oversteps the traditional bargaining process and applies to some, but not all, grocery workers in the city,” the company stated in its announcement.
The city’s law affects companies with 300 or more workers nationally and more than 15 employees per store in Long Beach. It will remain in effect for at least 120 days.
Ralphs, Food 4 Less to close 25% of Long Beach stores over extra $4 per hour Hero Pay ordinance
By Mary Stringini
Ralphs, Food 4 Less to close Long Beach stores over extra $4 per hour ‘Hero Pay’ ordinance
LONG BEACH, Calif. - Ralphs and Food 4 Less, both owned by the parent company Kroger, announced Monday that they will be closing 25% of their stores in Long Beach after the city council passed an ordinance requiring companies with over 300 employees nationwide to pay employees an extra $4 per hour. As a result of the City of Long Beach’s decision to pass an ordinance mandating Extra Pay for grocery workers, we have made the difficult decision to permanently close long-struggling store locations in Long Beach, said a company spokesperson. This misguided action by the Long Beach City Council oversteps the traditional bargaining process and applies to some, but not all, grocery workers in the city.
William Tarantion of Morrison & Foerster filed the lawsuit
LOS ANGELES (Legal Newsline) – A grocers group is suing the city of Long Beach, Calif., over an ordinance that makes grocery stores give workers a $4 per hour raise.
The California Grocers Association filed suit in federal court on Jan. 20 against the city over the measure it passed the day before. The “Premium Pay for Grocery Workers Ordinance” makes employers give the $4-an-hour bump despite any existing bonus, incentive or her pay program already in place.
The complaint notes the role grocery stores have played during the COVID-19 pandemic.
“The ordinance unreasonably singles out specific employee classes in specific grocers,” the suit says.
These workers must be justly compensated for the clear and present dangers of doing their jobs during the pandemic by requiring their employers to provide hazard pay.
During the committee meeting Tuesday, Councilman Curren Price said the hazard pay would be required for 120 days. These workers deserve to receive premium pay on top of their hourly wage. Putting them in this position as COVID-19 cases continue to surge without any type of hazard pay, is not only morally wrong but is disrespectful for all of their efforts, Price said. Some companies, like Trader Joe s, have provided a form of premium pay to their workers throughout this pandemic, and we commend them for it. And while it would be ideal if more companies followed in their footsteps, the reality is that s just not happening.
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Now, as the city faces a pending legal battle, it has become a litmus test for other cities and municipalities like Santa Monica, Los Angeles and the L.A. County Board of Supervisors, which are all considering similar local laws but have yet to go as far as Long Beach.
“There are other cities looking at ‘Hero Pay’ but Long Beach as far as I know is the first to pass an ordinance,” said City Attorney Charles Parkin on Monday.
Parkin said the city anticipated legal challenges, but its City Council, which unanimously passed the ordinance last week, has indicated that it wants to push forward.