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2 Park Plaza, Suite 100 | Irvine, CA 92614| P 949.476.2242 | F 949.476.0443 | www.ocbc.org March 2, 2021 The Honorable Vicente Sarmiento Mayor City of Santa Ana 20 Civic Center Plaza Santa Ana, CA 92701 RE: Santa Ana Premium Pay for Grocery Workers OPPOSE Dear Mayor Sarmiento and Members of the City Council: Orange County Business Council (OCBC), the leading voice of business in Orange County, is a strong advocate for balancing support for workers with relief for businesses also reeling from the pandemic. A premium pay ordinance for grocery workers will impose financial harm on employers at the worst possible time, while also unintentionally damaging workers and ultimately consumers and residents. Therefore, OCBC again expresses our strong opposition to a local mandate requiring premium pay for any workers and asks the City Council to work with stakeholders to assess the full economic impacts and explore alternatives. Local grocery stores, pharmacies, retailers and other essential employers are committed to paying competitive wages and benefits to their employees. Since the start of the COVID-19 pandemic, they have invested significantly in infrastructure and enhanced safety protocols to protect frontline essential workers and shoppers. They have also provided incentive pay, bonuses and additional health benefits. According to an economic study released by the California Grocers Association, up to an additional $5/hour increase in pay could raise grocery prices by about $400 annually for the typical family of four at the worst possible time. A hazard pay ordinance could also harm workers, rather than help them. The economic study concluded that, if grocers must offset savings in operational costs, they would need to reduce work hours by 24 percent across the board. Higher costs could even force employers to shutter store locations. Shutting down grocery stores will result in increased food insecurity and food deserts, especially in low-income and disadvantaged neighborhoods. Furthermore, higher costs will ultimately be borne by consumers and community members in the form of increased prices, at a time when many families and residents are already economically burdened. A hazard pay ordinance for any industry should consider research and cannot be duplicative or rushed. For these reasons, OCBC opposes a premium pay ordinance and strongly urges the Council to reevaluate this impactful policy. Sincerely, Jennifer Ward Senior Vice President of Advocacy and Government Affairs THE LEADING VOICE OF BUSINESS IN ORANGE COUNTY