The California Grocers Association has filed a lawsuit against the city of Irvine in an effort to halt the city’s recently adopted hero-pay ordinance.
The CGA is arguing that grocery stores would not be able to afford the expected financial increases that the 120-day, $4 per-hour increase will bring.
In a statement, Ronald Fong, president and CEO of the California Grocers Association, compared the hardships grocery workers faced during the pandemic, as equal to that of law enforcement and other frontline workers. Fong said, however, that the hero-pay ordinance will not make jobs any safer.
“Grocery store workers are frontline heroes, and that’s why grocers have already undertaken a massive effort to institute measures to make both workers and customers safer in stores,” Fong said. “Firefighters, police officers, health care workers, as well as transportation, sanitation and restaurant workers are essential, yet grocers are the only businesses being targeted for extra pay mandates. These ordinances will not make workers any safer.”
On Tuesday, February 9, the Irvine City Council became the first city in Orange County to adopt a temporary hazard pay ordinance, known as hero-pay for pharmacy and grocery workers.
In a text with Irvine Weekly Friday, March 19, Irvine Mayor Farrah Khan said she was aware of the lawsuit, adding that lawsuits are costly, questioning why there was money for a legal process, but not for essential workers.
“I am disappointed that money is being spent on a lawsuit similar to what was dismissed in Long Beach, yet there isn’t money to support the workers,” Khan wrote.
The ordinance, which was slated to take effect 30 days after the second reading, was supposed to be enacted this week.
Another reason for the hero pay lawsuit in Irvine, underscored by Fong, is the financial burden this ordinance creates for grocery stores.
“A $4-hour mandate amounts to a 28 percent average increase in labor costs for grocery stores. That is too big a cost increase for any grocery retailer to absorb without consequence. Options are few,” Fong said. “Either pass the costs to customers, cut employee or store hours, or close. Already five stores in Los Angeles County have closed after extra pay mandates were enacted.”
On Tuesday, Feb. 23, the Irvine City Council voted 3-2 to move forward with the ordinance. Both Irvine City Council members Anthony Kuo and Mike Carroll voted against the ordinance.
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