Kroger decided to close a store because it didn't want to pay a covid front line temporary increase of $4/hr.
I don't see a big increase in wages, and I work a lot of lousy jobs.
If job conditions were a bit better, a lot of employees will stay at a low paying job because they actually like their fellow employees, and sometimes the job.
I don't know why being nice/respectful is so out of fashion in corporate america?
I grocery shop at Safeway, and The Nugget markets. Safeway employees hate their job. They even have a hard time retaining new immigrants. When I shop at Safeway, I sometimes need to move to another line if I feel the checker is having a bad day. (I overheard an employee state a manager wanted him at a store 70 miles away at 5 am the next day, and he told that manager he didn't have transportation other than the bus. I wanted to grab the phone and lay into that "Manager".)
As opposed to The Nugget, which is notated as one of the best 100 places to work. It's like going back to the fifties. The employees are nice. It might be they hire people whom will have better jobs one day?
Anyways, it's not just about wage. I have had lousy low paid jobs I liked, and well paid union jobs I despise.
If you're talking about Seattle, Kroger closed that store because it was underperforming for years, not because of a temporary wage increase that affected every grocery store in the city. Weeks later, they started advertising open positions with wage increases for nearby stores they didn't close...
When it comes to political decisions, firms lie all the time about their motivations. I don't understand how anyone can take what they say at face value, without any means to verify their claims.
The reality is that nobody closes their grocery business because labour costs went up for them and their competitors. Customers still need groceries to live, and you and your competitors just pass the costs directly to them, without any change to profit margins or market share. Closing your grocery over this is as nonsensical as closing your grocery because the spot price of milk went up to $15/gallon.
It gets argued again and again that the profit incentive is necessary for cutting inefficiencies, and looking at it from Kroger's perspective, this appears to be another such example. Yet this is only the case for Kroger - when considered in its full context, as a supplier of necessities for working class folks, it's the total opposite. It's the composition fallacy at work: just because companies with a profit motive evolve to cut inefficiencies wherever possible (such as by externalizing costs) does not mean that society as a whole reaps the same benefits.
Of course they're not going to say "we're closing because we don't want to pay our employees a decent wage", that would be bad optics. You can be pretty sure that if you ask employees at the store, they'll say that whatever the stated reason, the intended message from the parent company is "we ain't gonna pay you more".
> Salary and Years of Experience
> Based on the May 2017 salary information from the Bureau of Labor Statistics (BLS), orderlies make a median wage of $13.07 an hour or $27,180 a year. Half of orderlies receive more, and half make less. The lowest-paid 10 percent make less than $9.73 an hour or $20,240 a year, while the highest-earning 10 percent get over $19.52 an hour or $40,610 a year. Orderlies employed in psychiatric and substance abuse hospitals are paid the highest average wage of $17.21 an hour or $35,800 a year. Nursing care facilities pay one of the lowest average wages of $12.00 an hour or $24,950 a year.
> Wages often start out low for entry-level orderlies and grow with experience. Some orderlies complete additional training and state requirements to advance to higher paid nursing assistant or registered nursing roles. In July 2018, PayScale.com showed this hourly pay progression by experience for nurse aides, orderlies and attendants:
> 0 to 5 years: $8.19 - $15.24
> 5 to 10 years: $8.28 - $15.83
> 10 to 20 years: $8.84 - $17.16
> 20 or more years: $8.73 - $20.00
Often working 24, 36 or even 48 hour shifts.
Often for $15/hr or less (many places will pay EMTs literally minimum wage, and tell their employees, "you can have as much OT as you want").
Part of it is supply and demand. Private EMS is often an in-road or holding pattern to a more "cushy" unionized fire department EMS position (where firefighter paramedics can make into the six digits). So private EMS has little motivation to be competitive - "there's a line of 21 year olds who will happily take your job".
With their huge efficiencies of scale and deep cash reserves, they are better able to offer higher wages than competitors. During the pandemic, both Walmart and Amazon have seen huge growth. They can continue this growth post-pandemic by squeezing their competitors on wages, and eventually emerging with less competitors.
Sounds like they're in a no win situation.
If they don't raise wages: "boo they're paying their workers slave wages!"
If they do raise wages: "boo they're using their huge scale to further crush their competitors!"
Nothing, good point.
> That is what they are doing now, right?
I haven't seen that near where I live (in the US) though I wouldn't doubt there are a number of locations experiencing that.
No soup for you.
They are. It takes time but they are. I work in a business that is having a hard time hiring entry level healthcare workers because Walmart and Amazon warehoueses is now paying $15-20/hr when it was only $12 pre-covid. Walmart and Amazon would only raise wages if they truly had a labor supply issue, which they do, we all do.