The Corner

Economy & Business

Weak Links in Chain Stores

Christian Britschgi writes for Reason:

“Hero pay” laws, which require big wage increases for grocery store workers during the COVID-19 pandemic, are sweeping the West Coast. Store closures, unemployment, and lawsuits have followed in their wake.

Kroger has shut down stores in Seattle, Long Beach, and L.A., citing the laws. Britschgi continues:

Grocery stores “absolutely should be paying this increase,” said Los Angeles City Councilmember Paul Kortez. “And if they shut down stores, it’s just out of spite.” It’s a strange argument that companies would be greedy enough to resist giving affordable pay increases to their employees but not so greedy that they don’t mind closing profitable stores just to make a point.

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