Article: Kroger closed grocery stores rather than give workers a $4 raise. Now it’s padding shareholders’ pockets with a $1 billion stock-buyback scheme.

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Kroger closed grocery stores rather than give workers a $4 raise. Now it’s padding shareholders’ pockets with a $1 billion stock-buyback scheme.

Paul Constant , 16 July 2021

Back in February, I wrote about the national grocery chain Kroger’s announcement that it was closing low-performing stores in Seattle and Long Beach, California, after the two cities passed laws requiring grocery stores to pay their front-line workers additional $4-per-hour “hero pay” during the pandemic.

“Giant corporations love to use splashy intimidation tactics like this to create fear-inducing headlines, which help to peel support away from worker protections,” I wrote then, adding, “But make no mistake: Even though Kroger’s press releases suggested that the grocery business relies on ‘razor-thin’ profit margins, Kroger has been making a ridiculous amount of money during the pandemic.”

By making a big deal of closing stores that were likely set to be shuttered anyway, Kroger’s message to politicians in states and cities around the country couldn’t be much clearer. And if you read the comment thread on news stories about the Kroger closures from February, you’ll find a vocal minority who believe Kroger is the victim.

“Money does not grow on trees. Business has to make a profit, otherwise it will close,” one Seattle Times reader lectured. (Kroger repeatedly bragged about its record profits throughout the pandemic.)

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