Laserfiche WebLink
<br /> <br /> <br />For Immediate Release: February 23, 2021 <br />Contact: Nate Rose, Senior Director of Communications, CA Grocers Association <br />(916) 628-8122 nrose@cagrocers.com <br />Kathy Fairbanks (916) 813-1010 kfairbanks@bcfpublicaffairs.com <br /> <br /> <br />In Case You Missed It <br /> <br />Los Angeles City analysis acknowledges negative consequences of extra pay <br />mandate <br />“could raise prices” “lead to store closures.” <br />Sacramento – An analysis by the Chief Legislative Analyst for the City of Los Angeles found that the <br />$5/hour extra pay mandate could result in various unintended consequences impacting workers and <br />customers. From pages 10-11: <br /> <br /> “Companies would be required to take action to reduce costs or increase revenue as the labor <br />increase will eliminate all current profit margin.” <br /> “Affected companies could raise prices to counteract the additional wage cost.” <br /> “More pressure on struggling stores (especially independent grocers), which could lead to store <br />closures.” <br /> “The closures of stores could lead to an increase in “food deserts” that lack access to fresh <br />groceries.” <br /> “To offset higher labor costs, companies might reduce working hours, benefits, wage rates, or <br />lay-off employees.” <br />“Extra pay mandates will have severe unintended consequences on not only grocers, but on their <br />workers and their customers,” said Ron Fong, president & CEO, California Grocers Association. “A <br />$5/hour extra pay mandate amounts to a 28 percent increase in labor costs. That’s huge. Grocers will <br />not be able to absorb those costs and negative repercussions are unavoidable. <br />“One unintended consequence would be higher costs for groceries. A recent study found that the <br />$5/hour increase would amount to a $400/year increase in grocery costs for a family of four. This <br /> <br />