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Trader Joe‘s is following a Seattle law that requires large grocery chains to pay their frontline workers $4 extra per hour in hazard pay–but they’re canceling midyear raises to do it!
The company announced on its website February 5th that it was increasing hazard pay for all its U.S. workers after the Seattle City Council’s mandate was passed. But fans of the grocery chain were bummed to learn that the pay increase for essential workers came with a catch!
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The company said it would accompany the wage bump with a cancellation of the midyear raises expected for roughly 10,000 employees.
"Effective February 1, 2021, the 'thank you' premium for all hourly, non-management crew members, was increased by two dollars, for a total of $4 an hour," the article last week said.
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At the same time, an internal memo to employees obtained by the Seattle Times from company CEO Dan Bane, President Jon Basalone and executive vice president of finance and administration Bryan Palbaum states that the company is cancelling midyear raises and could take further action "to address this potential economic situation" should cities "continue to increase the hourly rate above $4 or have the premium remain after the pandemic," the trio wrote.
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What's at stake? Trader Joe's typically gives workers a raise of 65 to 75 cents per hour twice a year.
