WA Food Industry CEO: Seattle grocery store hazard pay singles ‘one industry out’

Two cities in Washington have moved forward with grocery store pay that’s being labeled as “hazard pay” during the COVID-19 pandemic. In Seattle, grocery store workers in certain stores will get a $4 an hour increase over what they currently make, and in Burien, they’ll get an extra $5 an hour.

The Washington Food Industry Association is now suing the City of Seattle, and there’s no word yet on whether a Burien lawsuit will follow. WFIA CEO Tammie Hetrick joined the Jason Rantz Show on KTTH to discuss why she feels this legislation puts grocery stores in an unfair competitive space.

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“We respect our workers. They are amazing. Most of them are considered family at these doors, and so it has nothing to do with that,” Hetrick said. “It’s just how it’s being applied. And we have many different employees out there working during this time, and it’s odd to just single one industry out.”

As Jason noted, often the defense of the hazard pay initiatives from local politicians is that grocery stores are raking in millions during these times and can handle it, but Hetrick says this perception is off.

“They’re basing this on a national study. And really, what we’re seeing happen in Seattle is totally opposite,” she said. “Aside from increased costs for cleaning and everything else, we also have no tourism to speak of. People are not working downtown, so we have decreased sales because those employees aren’t there, and all of those things increase losses.”

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Hetrick says such ordinances can have a major financial impact on stores who are already struggling.

“When I calculated out just 21 employees for a store in Burien, that equates to almost $19,000 a month extra. That’s money they don’t have,” she said. “Now they’re trying to invest in online and delivery and all these other things, aside from cleaning and just making sure that they’re keeping their employees and customers safe. So those are our top priorities.”

“A cost like that will have to be absorbed somewhere, and it will mean changes in that business model.”

Listen to the Jason Rantz Show weekday afternoons from 3 – 6 p.m. on KTTH 770 AM (or HD Radio 97.3 FM HD-Channel 3). Subscribe to the podcast here