Kroger announces new bonuses after cutting hazard pay
Union had criticized grocer for eliminating so-called hero premium
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CINCINNATI, Ohio — Just days after announcing it would end hazard “hero” pay to front-line workers, Kroger says it will give them extra “thank you” bonuses, the Cincinnati Enquirer reports.
The move comes after an outcry from the grocery store's union, the United Food and Commercial Workers International, which said workers are still risking their lives by coming to work.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| KR | THE KROGER CO. | 59.22 | +0.64 | +1.09% |
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The bonus is $400 for full-time workers and $200 for part-time workers to be paid out in two installments on May 30 and June 18, Kroger announced Friday. Hazard pay was a $2-per-hour supplement.
UFCW Local 75 president Kevin Garvey said the union will continue to pressure the company to provide bonus pay for as long as the pandemic goes on.
“COVID-19 is not going away soon,” he said. "Our members still have to work in the same conditions and deal with the same pressures. They are worth every penny of the $2.00 premium and the (latest) bonus.”
An employee pushes grocery carts outside a Kroger Co. grocery store in Louisville, Kentucky. (Luke Sharrett/Bloomberg via Getty Images)
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The Cincinnati-based company did not address the dispute with its union in its announcement. The grocer estimates the new bonus will provide $130 million to its workers.
“Our associates have been instrumental in feeding America while also helping to flatten the curve during the initial phases of the pandemic. To recognize and thank our associates for their incredible work during this historic time, we offered special pay in March, April and May,” said CEO Rodney McMullen, in a statement.
AMERICA'S LARGEST GROCERY UNION BLASTS KROGER FOR ENDING 'HERO PAY'
Nationwide, UFCW International estimates that at least 65 grocery workers have died at Kroger and other retailers after contracting the coronavirus.
A shopper looks beef at a Kroger store in Atlanta underneath a sign limiting shoppers to three packages of ground beef on Tuesday, May 5, 2020. (AP Photo/Jeff Amy)
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Also on Friday, UFCW International called on 49 major grocery companies, including Walmart, Trader Joe's, Whole Foods, Costco and Sam's Club, to extend hazard pay for their workers.
In his letter, Perrone challenged the companies' executives to publicly state they think the dangers of COVID-19 have passed if they chose to stop hazard pay.
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