Kroger Shutters 2 CA Stores In Response To $4 'Hero Pay' Bump

LONG BEACH, CA — Grocery giant Kroger officially shuttered two stores in Long Beach on Saturday. The controversial closures came after the city approved a coronavirus "hero pay " ordinance.

The retail chain announced plans to close a Ralphs at 3380 N. Los Coyotes Diagonal and a Food 4 Less at 2185 E. South St. in February.

The mandate grants a $4 pay bump to essential workers in retail stores and pharmacies with 300 workers nationwide and more than 15 employees per location in Long Beach. The pay is meant to pad the paychecks of workers who face the public consistently and risk exposure to the coronavirus, which has been especially rampant in Southern California.

While the closures have been met with controversy, with some rallying outside the market over the last few months, the company argued that the $4 pay bump per employee would make it impossible to keep stores open.

"The irreparable harm that will come to employees and local citizens as a direct result of the City of Long Beach’s attempt to pick winners and losers, is deeply unfortunate," the company said in an earlier statement. "We are truly saddened that our associates and customers will ultimately be the real victims of the city council's actions."

SEE ALSO: 'Hero Pay' Grocery Store Closure In Long Beach Prompts Protest

The company has said that it invested $1.3 billion to "reward associates" and enact safety measures at all of its stores during the pandemic. It also offered employees a $2 pay boost when the pandemic first impacted the state, but those wage bumps expired in June.

The California Grocers Association also insisted that the ordinance would not boost the safety of workers, but could actually lead to higher costs for consumers.

In early February, a group of workers at the Long Beach Food 4 Less rallied against the decision to close the store.

"They want to shut the store down after all the hard work I've done to feed the needy families, and everything, and risk my life and my families' lives at home," employee Robert Gonzales said at a news conference attended by store employees, union leaders and Mayor Robert Garcia.

Garcia, who was a main driver of the "hero pay" initiative, also attended that protest.

"I don't think that anyone that has shopped over this last six months to a year can look into the eyes of these workers and tell them that they don't deserve an additional few bucks an hour for the incredible work they've been doing during this pandemic," Garcia said.

The City News Service contributed to this report.