Oops, There Goes Another Food Store

For John, BLUF:  Here is an example of Government meaning to do good, but actually doing harm, in several directions.  Nothing to see here; just move along.

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Kroger Closes 2 Stores in California City That Required ‘Hero Pay’

The Epoch Times, by Reporter Jack Phillips, 18 April 2021.

Here is the lede plus three:

Grocery chain Kroger said it closed down two California stores Saturday after the Long Beach City Council approved a COVID-19-related “hero pay” ordinance that increased wages by $4 per hour.

The pay increase, mandated in January, was for workers who were employed at pharmacies and retail stores with 300 or more employees in the Southern California city.

The move was announced earlier this year, but the Ralph’s and Food 4 Less—both operated by Kroger—were shut down on April 17, employees told local media outlets.

“As a result of the City of Long Beach’s decision to pass an ordinance mandating Extra Pay for grocery workers, we have made the difficult decision to permanently close long-struggling store locations in Long Beach,” said a spokesperson for Kroger several weeks ago. “This misguided action by the Long Beach City Council oversteps the traditional bargaining process and applies to some, but not all, grocery workers in the city.”

At least it wasn't Vons.  I have always liked Vons.

This is a signal that governments should be careful about sticking their oar in the waters of the free market.

Regards  —  Cliff