Los Angeles Shoots Own Workers in the Foot, Store Closings Spark Wave of Layoffs as $5 ‘Hero Pay’ Bump Goes Into Effect – IOTW Report

Los Angeles Shoots Own Workers in the Foot, Store Closings Spark Wave of Layoffs as $5 ‘Hero Pay’ Bump Goes Into Effect

WJ:

Kroger will be shutting down two Ralph’s locations and one Food 4 Less store, as Los Angeles recently passed a $5 “hero pay” temporary wage hike for pharmacy and grocery workers.

The ordinance from the L.A. City Council — approved on March 3 and spoken of highly by Mayor Eric Garcetti — was intended to incentivize and thank workers in high-risk fields.

“It’s never our desire to close a store, but when you factor in the increased costs of operating during COVID-19, consistent financial losses at these three locations, and an extra pay mandate that will cost nearly $20 million over the next 120 days, it becomes impossible to operate these three stores,” Kroger said in a statement, according to KCBS-TV.

The three locations were reportedly already underperforming, so the 120-day wage hike from the $18 per hour employees were already earning was the final nail in the coffin. read more

17 Comments on Los Angeles Shoots Own Workers in the Foot, Store Closings Spark Wave of Layoffs as $5 ‘Hero Pay’ Bump Goes Into Effect

  1. You’d think the fascists would learn from these episodes, but they don’t really care about the people they claim to want to help. It’s just a slogan to them to buy support, damn the consequences. And their followers won’t learn either, just keep supporting those who through them out of work and made their lives miserable.

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  2. Pair every “hero” eligible for the five dollar bump with a city worker. Dock the city worker’s pay $5/hr and use the money to pay the “hero” out of city funds.

    Even better, make the city employees’ “hero tax” progressive. Those with salaries up to, say, $30K would pay $5/hr, up to $50K would pay $10/hr, up to $70K would pay $15/hr., and so on.

    </fantasy>

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  3. Well, there’s also the fact that there’s an almost $1,000 limit on shoplifting before the police can get involved. That might have something to do with it, too.

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  4. Exact opposite up here:

    Liberal Government gave all young people who could not get summer jobs because of Covid Government ordered shutdowns $2,000 per month. Kids that on average would have earned $600-1200 per month.

    Essential businesses ended up having a HUGE staffing problem because no one wanted to work for less than they could get playing video games at home.

    Business owners were killing themselves (14 hr days plus) trying to stay alive with no staff showing up while other businesses were going broke while ordered closed.

    The government has no ability to for see the consequences of bad decisions.

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  5. Kroger won’t lose a dime. But the people of Los Angeles will suffer from long lines at stores, and food shortages. (There’s only so much room in a store to keep goods for shoppers coming from several other closed stores.)

    The mayor of LA (garcetti) should be recalled, along with the idiot governor of CA (newsom), and along with the lunatic DA of LA (Gascon).

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  6. What does the 5 dollar an hour extra pay actually cost the store with all the LA, CA State, and Federal taxes the employer has to pay on top of it?

    7, 8, maybe even up to 10 dollars an hour?

    That’s gotta make groceries and such go up quite a bit or they have to shut down employment and employment costs to compensate for it, and that means laying off people and closing marginally profitable stores.

    It isn’t a point of profit greed, it’s a point of staying in business necessity.

    Don’t their politicians understand that?

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  7. Leftists have virtually NO ability to link cause and affect. It’s not about logic, rational and thoughtful processes. It’s about how good they feel about themselves.

    The road to hell is paved with good intentions. For libs it’s 8 lanes wide, paved, and straight as an arrow.

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  8. The newly enhanced social safety net will kick in for these people and it will allow them to pursue new and better careers. Some may, for the first time in their lives, now have the opportunity to pursue their passions as an artist, photographer, writer, a musician or whatever.

    The planet will benefit from these store closings because less electricity will be consumed along with the fossil fuels that would be consumed to deliver the foodstuffs.

    That’s how it will be spun if the devoted press should even ask the proggies to comment on the closings. Remember that in proggie land, what’s good is bad and what’s bad is good.

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  9. “The government has no ability to for see the consequences of bad decisions.”

    There are NO “unintended” consequences.
    Every consequence is entirely predictable, foreseeable, and (for the gov’t) desirable.

    izlamo delenda est …

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