John Mackey, CEO of Whole Foods, discusses the increase in sales through delivery services and how trends will change after the coronavirus pandemic ends.
Popular grocery trader Trader Joe’s announced this week that it will temporarily increase its salary for all employees amid the still raging COVID-19 pandemic.
““Since the beginning of the pandemic, Trader Joe’s has given an extra $ 2 hourly resignation to all crew members per hour, in recognition of the excellent, inspiring work they do every day in our stores and communities,” the company wrote. in a Monday update on his website.
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““As of February 1, 2021, the ‘thank you’ premium for all crew members per hour, which is not managed, was increased by two dollars, for a total of $ 4 per hour,” it is said.
Although the post does not refer to Seattle, it follows the approval of a new city mandate that requires a $ 4-hour emergency payment for the duration of the pandemic.
Nevertheless, a letter to Seattle employees obtained by The Seattle Times revealed that the company did act in response to the ordinance.
“After seeing this with a few cities in California and Washington, we have determined that such conduct is unfair to all stores throughout the company,” Trader Joe’s management wrote. “As a result, we are increasing our ‘gratuity’ for all crew members with effect from 1 February by two dollars, which will widen the ‘gratuity’ equal to $ 4 company.”
Furthermore, the chain also said that it would cancel the 2021 summer increases in the summer – although these increases were only a fraction of ‘thank you paid’ – and that the $ 4 increase would continue through the course of the pandemic or until employees’ are eligible for vaccines as’ grocery workers’. ”
Seattle law applies to large grocery stores with a total of more than 500 employees.
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Mandatory pay rise legislation has been mixed with reviews in Seattle and California, where Long Beach and Los Angeles have both pledged ‘increases’ for certain essential workers.
The California Grocers Association has strongly opposed such legislation, and retailer Kroger said it would have to close two of its stores after the city council approved a $ 4-hour increase.
In a public letter to Democratic Mayor Jenny Durkan, PCC Community Markets CEO Suzy Monford raised the alarm about the possible negative consequences of the salary increases.
“We are so concerned about the impact of the Hazard Pay Ordinance on independent groceries like us, that we feel we have no choice but to share our concern,” she said.
“Unlike large corporate groceries that have seen a large sustained increase in sales nationwide, we have not had a sustained increase in sales and we have no national footprint we can rely on to reimburse these costs. nor the cost of doing business in Seattle, “Monford wrote. and noted that PCC had $ 1.7 million in revenue in 2019, but that it had $ 3 million in COVID-related expenses last year.
“The cost of COVID response, including the security checks we committed to keep our staff safe and the additional payment, cut our margins to the bone,” she warned.
However, local politicians on Tuesday expressed their support for the order to increase the payment to KING 5.
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Durkan will sign the legislation on Wednesday and it will take effect immediately.
Attempts by FOX Business to reach out to Trader Joe and Durkan’s office did not immediately respond.
The Associated Press contributed to this report.