by Bob Walsh
The
city of Long Beach, CA recently passed an ordinance demanding that
large grocery retailers pay their help an extra $4 per hour, sort of a
hazard pay bonus, for the next 120 days.
In
response Krogers elected to permanently close two of their Long Beach
stores, a Ralphs and a Food 4 Less store, that had been marginal
performers for some period of time. (The overall margin in the grocery
business is very slim.)
A
similar local ordinance is being contemplated in Montabello, Los
Angeles, Oakland, Pomona, San Jose and several other Bay Area cities.
This local ordinance represents about a 28% increase in labor costs.
The
grocer's association is suing Long Beach, claiming the law interferes
with the collective bargaining process between them and the unions
involved.
2 comments:
Government mandated salaries? With stores closing and people shopping elsewhere Long Beach will suffer. Idiots.
But the elected leaders will be entitled to FEEL GOOD about their actions. Unintended consequences be damned. Fuck the peasants, let them eat off taco trucks.
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