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Popular food retailer Trader Joe’s announced this week that it would temporarily increase pay for all employees amid the still-violent COVID-19 pandemic.
“Since the start of the pandemic, Trader Joe’s has provided all hourly crew members with an additional $ 2 / hour ‘thank you’ salary in recognition of the exceptional and inspiring work they do every day in our stores and communities, “wrote the company in a Monday update on its website.
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“As of February 1, 2021, the ‘thank you’ award for all non-hourly crew members has been increased by two dollars, to a total of $ 4 an hour, “he said.
Although the post does not refer to Seattle, the company’s move follows the approval of a new municipal mandate that requires a $ 4 per hour hazardous pay during the pandemic.
However, a letter to Seattle employees obtained by The Seattle Times revealed that the company did act in response to the decree.
“After seeing this happen in some cities in California and Washington, we determined that such actions are unfair to all of the company’s stores,” wrote Trader Joe management. “As of February 1, we will increase our ‘thank you payment’ for all crew members by two dollars, making the ‘thank you payment’ equal to $ 4 across the company.”
In addition, the network also said it would cancel its mid-summer 2021 increases – although those increases are only a fraction of the “thank you payment” – and that the $ 4 increase would continue over the course of the pandemic or even than employees “eligible for vaccines as ‘grocery workers’”.
The Seattle law applies to large supermarkets with more than 500 employees in total.
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The mandatory wage increase legislation has received mixed criticism in both Seattle and California, where Long Beach and Los Angeles have pledged “hero salary” increases for certain essential workers.
The California Grocers Association has spoken out vehemently against this legislation and retailer Kroger said it would be forced to close two of its stores after the City Council approved a $ 4 hourly 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 salary increases.
“We are so concerned about the impact of the Danger Ordinance on independent grocery stores like us, that we feel we have no choice but to share our concern,” she said.
“Unlike large corporate grocery stores that have seen a steady increase in sales across the country, we have not had a sustained increase in sales and we do not have a national footprint to offset these costs or the cost of doing business in Seattle,” wrote Monford, noting that although the CCP had net revenue of $ 1.7 million in 2019, there was a $ 3 million hemorrhage in COVID-related expenses last year.
“The cost of COVID’s response, including the security controls we commit to in order to keep our staff safe and the additional payment, cut our margins to the bone,” she warned.
However, local politicians expressed support for mandatory salary increases for KING 5 on Tuesday.
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Durkan is due to sign the legislation on Wednesday, and it will take effect immediately.
Attempts by FOX Business to contact the offices of Trader Joe and Durkan did not receive an immediate response.
The Associated Press contributed to this report.