Retail chain Kroger on Saturday announced the closure of two of its stores in California following the passing of the “hero pay” ordinance in Long Beach City.
Hero Pay Ordinance
The Hero Pay ordinance is a measure that provides workers in retail stores and pharmacies a bump in their wages as the COVID-19 pandemic continues to spread throughout the nation. In Long Beach City, essential workers eligible for Hero Pay have seen a $4 per hour increase in their wages.
Other cities in the state of California have also approved the ordinance, with Los Angeles giving workers a $5 an hour raise.
In response, Kroger began closing stores in cities where “hero pay” ordinances were approved, citing “underperformance” as the reason. The company gave its employees the chance to transfer to other Kroger locations, according to Fox Los Angeles.