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Kroger and Albertsons Confront a Skeptical F.T.C. in federal court

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The Federal Trade Commission, which is trying to block Kroger’s plan to acquire Albertsons, said in court that the merger of grocery giants would also hurt workers’ pay and benefits.A trial that could determine whether the two largest supermarket chains in the United States can merge opened in Portland, Ore., on Monday, pitting the grocery giant Kroger against regulators who argue that its takeover of Albertsons would eliminate competition at the expense of consumers and workers.Before Judge Adrienne Nelson of U.S. District Court, the Federal Trade Commission and the supermarket chains laid out their arguments in court for the first time, as union representatives and workers protested the deal on the courthouse steps. Less competition, the agency’s lawyers said, would give Kroger more leverage to raise prices on millions of consumers.The highly anticipated proceedings, set to last three weeks, come as high food prices have become a critical focus in the presidential race. Vice President Kamala Harris, the Democratic presidential nominee, has backed a federal ban on price-gouging in the food and grocery industries to combat high grocery costs.Kroger and Albertsons defended the $24.6 billion deal, which would be the biggest supermarket merger in U.S. history, saying it would bolster their leverage with suppliers and improve competition against major retailers like Costco, Amazon and Walmart. But the F.T.C. — backed by a chorus of unions, consumer advocates, politicians and independent grocery chains — reiterated its position that the merger would probably result in higher prices for groceries and worse conditions for workers.The deal “would eliminate the competition that shoppers and workers depend on in one fell swoop,” Susan Musser, the F.T.C.’s chief trial counsel, said in her opening statement. “This lawsuit is part of an effort aimed at helping Americans feed their families.”In bringing the case, the F.T.C. has been joined by the attorneys general of eight states, including California and Illinois, as well as the District of Columbia. It’s part of a regulatory push under the Biden administration to rein in corporate consolidation in an array of industries, including airlines, Big Tech, book publishing and pharmaceuticals.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    Business Booms at Kroger-Owned Grocery Stores, but Workers Are Left Behind

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    A number of the stores’ nearly 500,000 employees have reported being homeless, receiving government food stamps or relying on food banks.When Enrique Romero Jr. finishes his shift fulfilling online orders at a Fred Meyer grocery store in Bellingham, Wash., he often walks to a nearby plasma donation center. There, he has his blood drained, and a hydrating solution is pumped into his veins, a process that leaves him tired and cold.Mr. Romero, 30, said selling his plasma made him feel “like cattle.” But the income he earns from it — roughly $500 a month — is more reliable than his wages at Fred Meyer, which is owned by the grocery giant Kroger. His part-time hours often fluctuate, and he struggles to find enough money to cover his rent, his groceries and the regular repairs required to keep his 2007 Chevy Aveo on the road.“The economy we have is grueling,” he said.Business has boomed during the pandemic for Kroger, the biggest supermarket chain in the United States and the fourth-largest employer in the Fortune 500. It owns more than 2,700 locations, and its brands include Harris Teeter, Fred Meyer, Ralphs, Smith’s, Pick ’n Save and even Murray’s Cheese in New York City. The company, which is based in Cincinnati, said in December that it was expecting sales growth of at least 13.7 percent over two years. The company’s stock has risen about 36 percent over the past year.But that success has not trickled down to its vast work force of nearly 500,000 employees, a number of whom have reported being homeless, receiving government food stamps or relying on food banks to feed their families. A brief strike in Colorado last month by workers, represented by the United Food and Commercial Workers Union, at dozens of Kroger-owned King Soopers locations brought renewed scrutiny to the issues of pay and working conditions for grocery workers, who have been on the front lines throughout the pandemic.Because his part-time hours are not guaranteed, Mr. Romero said he struggled to pay rent.Jovelle Tamayo for The New York TimesThe Economic Roundtable, a nonprofit research group that surveyed more than 10,000 Kroger workers in Washington, Colorado and Southern California about their working conditions for a report commissioned by four units of the food workers union, found that about 75 percent of Kroger workers said they were food insecure, meaning they lacked consistent access to enough food for an active, healthy life. About 14 percent said they were homeless or had been homeless in the previous year, and 63 percent said they did not earn enough money to pay for basic expenses every month.“There is a race to the bottom that’s been going on for a while with Walmart and other large retail stores, and also restaurants, and to reverse that trend is not easy,” said Daniel Flaming, president of the Economic Roundtable.Kroger was the sole employer for 86 percent of those surveyed, partly because more than half had schedules that changed at least every week, making it difficult to commit to another employer. About two-thirds said they were part-time workers, even though they wanted more hours. Keeping workers part time is a strategy employers use to encourage turnover and reduce costs.Kristal Howard, a spokeswoman for Kroger, said the report was “one-dimensional and does not tell the complete story.”“Kroger has provided an incredible number of people with their first job, second chances and lifelong careers, and we’re proud to play this role in our communities,” she said. Ms. Howard added that the company had raised its national average hourly rate of pay to $16.68 from $13.66 in 2017, a 22 percent increase, and that its benefits package included health care, retirement savings, tuition assistance and on-demand access to mental health assistance.Some of the workers said that even though other retailers and fast food restaurants had started offering higher starting wages than Kroger, the company’s health insurance and retirement benefits, which the union negotiated, were more generous than what other employers offered. Other part-time Kroger workers say they stay on the job because they don’t want to lose their seniority and the chance for a full-time role.Despite some of the wage increases and benefits, working at a grocery store no longer provides the stable income and middle-class lifestyle that it did 30 years ago, workers say. The Economic Roundtable report studied contracts dating back to 1990 and said the most experienced clerks — known as journeymen — in Southern California made roughly $28 per hour in today’s dollars while working full-time schedules. Wages for top-paid clerks today are 22 percent lower, and those workers are far more likely to be working part-time hours.Ashley Manning, a 32-year-old floral manager at a Ralphs in San Pedro, Calif., works full time but is regularly strapped for cash. Ms. Manning, the single mother of a 12-year-old, said she had worked at Ralphs for nine years and earned $18.25 an hour. It took her four years to reach full-time status, which guarantees 40 hours per week and comes with an annual bonus ranging from $500 to $3,000.It took Ashley Manning four years to become a full-time worker at Ralphs, and even now she struggles to pay for basic living expenses. Philip Cheung for The New York TimesShe said she struggled to pay rent and moved into her grandmother’s house after being evicted last spring. She has needed help from her family to help pay for a car. She has tried to make extra money through a party planning and decorating business, but demand for those services dried up in the pandemic.“I would think, ‘I have a good job and make decent money,’ and I don’t,” Ms. Manning said. “I’m still on the poverty level.”During the pandemic, grocery store workers have been recognized as essential to keeping society going, but they have also faced health risks. At least 50,600 grocery workers around the country have been infected with or exposed to the coronavirus, and at least 213 have died from the virus, according to the United Food and Commercial Workers International Union.Ms. Manning was hospitalized for Covid-19 last summer. She blames herself for her grandmother’s subsequent death from the virus in August.“She was one of the people that would help me the most, if I was short on a bill or needed help, to pick my daughter up from school,” she said. But when her grandmother was in critical condition, Ms. Manning said, she was told that she couldn’t take more time off after being sick with Covid-19.The illness and the company’s response were jarring, given that corporate workers had the flexibility to work from home, she said, adding that she ultimately took disability leave for a stretch.Kroger has one of the country’s starkest gaps between a chief executive’s compensation and that of the median employee. Rodney McMullen, Kroger’s chief executive since 2014, earned $22.4 million in 2020, while the median employee earned $24,617 — a ratio of 909 to 1. The average C.E.O.-to-worker pay ratio in the S&P 500 is 299 to 1, with grocery chains like Costco (193 to 1) and Publix (153 to 1) lower than that.These disparities have fomented outrage among employees, who are also dealing with issues like fights over masks and theft and violence in stores.King Soopers grocery store workers in Denver went on a strike last month over wages and working conditions.Michael Ciaglo/Getty ImagesIn Colorado, more than 8,000 workers at the Kroger-owned King Soopers chain walked off the job last month when union contract negotiations broke down over wages, employee safety issues and scheduling.Around the time of the strike, a nonprofit publication, A More Perfect Union, published an internal Kroger document in which the company acknowledged that one in five of its employees received government assistance in 2017. The document also included research showing that employee turnover was lower in places where it raised wages.In response, Kroger said it had developed an improvement plan after the analysis, which included the wage increase and steps to improve tuition assistance and retirement benefits. The company commissioned its own study that stated last month that Kroger’s average pay and benefits in Colorado and three other Western states were higher than those of other retailers.After more than a week of picketing, the union — Local 7 of the U.F.C.W. — won large concessions, including wage increases of more than $5A an hour for some workers and a plan to move at least 500 part-time workers into full-time roles within a few months.As successful as the strike was for workers in Colorado, Larry Cohen, former president of the Communications Workers of America, said the contracts covered only employees at specific Kroger chains, making it difficult for unions to gain broader leverage.“When all contracts are local, how do you deal with a giant national company?” Mr. Cohen said. “Not very well.”Kroger has tightly controlled labor expenses during the pandemic. The company offered hero pay and thank-you bonuses to workers in the early months of the pandemic but ended those well before vaccinations were available. (Grocery workers were also not given priority for vaccinations in many states.) While some municipalities like Los Angeles and Seattle sought to institute hazard pay mandates, Kroger and grocery lobbying associations fought such efforts.Workers protested outside a Kroger-owned Food 4 Less store in California that was closed after the local government mandated hazard pay for grocery employees.Maggie Shannon for The New York TimesKroger’s resistance to wage increases peaked last year when the Los Angeles City Council approved a hazard pay mandate requiring large grocers and pharmacies to pay employees an additional $5 an hour for four months. In response, Kroger said it would close three stores in the area in May — two Ralphs locations and a Food 4 Less — blaming increased costs. The company pointed to a release at the time that said the stores were underperforming. But City Council members were left with the sense that the closures were retaliatory.Paul Koretz, a member of the Council, said he had dealt with backlash from some constituents about the impending closing of a Ralphs in his district, a go-to for the local Orthodox Jewish community. He said Ralphs representatives had warned him that they would close the store if the mandate was instituted.“I’m not sure I really believed that Ralphs would do it,” he said. “It just seemed so counterintuitive that you would mess with your very loyal customers.”Shoppers in his district have adapted since the store closed. But he said he believed that the impact of the closings on employees and Council members’ fear of angering constituents probably had a chilling effect on other municipalities that were considering similar measures. The mandated hazard pay gave many Kroger workers a glimpse of how their day-to-day lives could improve with more money. Areli Rivas, a part-time cashier at a Ralphs in Van Nuys, Calif., who is married to a full-time worker at the store, said the extra pay gave her “peace of mind.”“The economy we have is grueling,” said Mr. Romero, outside the Fred Meyer store where he works.Jovelle Tamayo for The New York TimesThe mother of two said it was hard to justify purchases like a new backpack for her son, even though his current one is fraying. More pay would also allow her to get her daughter a new glasses prescription.Some workers like Ms. Manning said that they couldn’t afford to shop at their store and that the employee discount of 10 percent applied only to Kroger-branded goods and did not always include produce and other essentials.Kroger said that the discount covered 19,000 private-label food products and that it did include dairy, proteins and produce.Pio Figueroa, 25, who has been working at a Ralphs in Laguna Beach, Calif., for about six years, said he was able to manage his monthly expenses now that he was among the highest earners in his store, making about $22.50 an hour. But at one point, he was making $15 or $16 per hour at the chain and struggled mightily.“There were times I could only budget to spend $100 on food and everything a week,” he said. “So there were times I would go without a meal or definitely think, ‘What am I going to eat tonight?’” More

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    Despite Labor Shortages, Workers See Few Gains in Economic Security

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    Over the past two months, Brenda Garcia, who works at a Chipotle in Queens, has struggled to land more than 20 hours per week, making it difficult to keep up with her expenses. When she confronts her manager, he vows to try to find her more work, but the problem invariably persists. In one recent week, the store scheduled her for a single 6.25-hour shift.“It’s not enough for me — they’re not giving me a stable job,” said Ms. Garcia, whose work involves chopping vegetables and other tasks before burritos are assembled. “They’re not giving me the hours and the days I’m supposed to be getting.”Ms. Garcia’s limited hours are not unusual at Chipotle, which has a largely part-time work force. A weekly schedule at her store from early January showed at least a dozen workers with fewer than 20 hours and several with fewer than 15.With workers nationwide quitting at high rates and companies complaining that they can’t fill jobs, employers might be expected to rethink their dependence on part-time scheduling. While some employees prefer the flexibility, many say it leaves them with too few hours, too little income or erratic hours.But that rethinking does not appear to have happened. Government data show that in retail businesses, the portion of workers on part-time schedules last year stood about where it was just before the pandemic, and that it increased somewhat in hospitality industries like restaurants and hotels.In a twice-yearly survey by Daniel Schneider, a Harvard sociologist, and Kristen Harknett, a sociologist at the University of California, San Francisco, one-quarter of workers at large retailers and restaurant chains said they were scheduled 35 hours a week or less and wanted more hours. That was down from about one-third in 2019, but the change was driven by a decline in the number of workers wanting more hours, most likely because of pandemic health risks and work-life conflicts, not because employers were providing more hours.Even as employers complain of having to scramble to fill vacancies, there is little evidence that service workers are winning any meaningful, long-term gains. While businesses have raised wages, those increases can be easily eroded by inflation, if they haven’t been already. The overall national rate of membership in unions — which can obtain wage increases for workers even absent labor shortages — matched its lowest level on record last year.Limited work hours are not unusual at Chipotle, which has a largely part-time work force.Brandon Bell/Getty ImagesAnd the unpredictable schedules that arise when employers constantly adjust staffing in response to customer demand, something that is common among part-timers, are roughly as prevalent as before the pandemic. The survey by Dr. Schneider and Dr. Harknett found that about two-thirds of workers continue to receive less than two weeks’ notice of their schedules.“Companies are doing all they can not to bake in any gains that are difficult to claw back,” Dr. Schneider said. “Workers’ labor market power is so far not yielding durable dividends.”The changes that make work lower paying, less stable and generally more precarious date back to the 1960s and ’70s, when the labor market evolved in two key ways. First, companies began pushing more work outside the firm — relying increasingly on contractors, temps and franchisees, a practice known as “fissuring.”Second, many businesses that continued to employ workers directly began hiring them to part-time positions, rather than full-time roles, particularly in the retail and hospitality industries.According to the scholars Chris Tilly of the University of California, Los Angeles, and Françoise Carré of the University of Massachusetts Boston, the initial impetus for the shift to part-time work was the mass entry of women into the work force, including many who preferred part-time positions so they could be home when children returned from school.Before long, however, employers saw an advantage in hiring part-timers and deliberately added more. “A light bulb went on one day,” Dr. Tilly said. “‘If we’re expanding part-time schedules, we don’t have to offer benefits, we can offer a lower wage rate.’”By the late 1980s, employers had begun using scheduling software to forecast customer demand and staffed accordingly. Having a large portion of part-time workers, who could be given more hours when stores got busy and fewer hours when business slowed, helped enable this practice, known as just-in-time scheduling.But the arrangement subjected workers to fluctuating schedules and unreliable hours, disrupting their personal lives, their sleep, even their children’s brain development.Nonetheless, the model continued to spread, and the shift to a heavily part-time work force was largely complete across retail by the mid-1990s.A recent study commissioned by Kroger found that about 70 percent of the supermarket company’s nearly 85,000 store employees in California, Colorado, Oregon and Washington State were part time. A survey of more than 10,000 Kroger workers on behalf of four union locals by the Economic Roundtable, a nonprofit research group, found widespread evidence of just-in-time scheduling, with more than half of workers reporting that their schedules changed at least weekly.Kroger, one of the nation’s largest employers, said in a statement that many of its employees sought part-time jobs for their flexibility and for health care benefits that competitors didn’t offer, as well as for opportunities for upward mobility. “We provide hundreds of thousands of people with first jobs (think baggers, cashiers, stockers, etc.), second chances, retirement employment, college gigs,” the statement said.The company added that locals of the United Food and Commercial Workers union had negotiated and agreed to the relevant provisions of its labor contracts for decades.A spokeswoman for Chipotle, where Service Employees International Union Local 32BJ is helping workers organize, likewise said that managers and employees mutually agreed on hours and that the company enabled employees to pick up additional shifts at other New York City stores when they were available.But the practices remain contentious. In mid-January, more than 8,000 Denver-area workers at King Soopers, a supermarket chain owned by Kroger, went on strike, citing the lack of full-time employment as a key issue.Workers picketing during a strike at King Soopers in Denver. A key issue was the lack of full-time employment.Michael Ciaglo/Getty ImagesRenae Vigil, who works in the meat department at a King Soopers in Denver and serves as a union steward, said many of her colleagues would like to work full time so that “they wouldn’t be worried about how to pay bills, how to get this or that paid, but at King’s, it’s like winning a lotto.”The frustrations suggest a relatively straightforward way for employers to reduce labor shortages: Offer more full-time positions.But Kim Cordova, president of U.F.C.W. Local 7, which represents the King Soopers workers, said employers like Kroger were rarely moved by this logic. “They’ve told us they think the market is going to correct itself, this is temporary and they don’t want to lock themselves into changing permanently,” she said. The food workers union estimated that King Soopers had 2,400 unfilled Denver-area jobs early this year.While the strike ended last month, after the company committed to raise pay, contribute more to health benefits and add at least 500 full-time positions, a majority of King Soopers workers are likely to remain on part-time schedules. Most retail and restaurant workers, who lack a union to organize a strike and provide strike pay, may have a harder time winning such changes.Susan Lambert, a social work scholar at the University of Chicago who studies employers’ scheduling practices, said she and a colleague had recently interviewed store managers in Seattle and Chicago and found that some had, in fact, sought to provide more consistent schedules during the pandemic.The change was driven by a combination of data, showing that more humane scheduling practices need not undermine profitability, and a desire by some employers to retain workers amid labor shortages, Dr. Lambert said. But she conceded that the changes were mostly at the margins.“There are not major investments in changing major systems,” she said.Data collected by the Labor Department indicate that the amount of part-time work in the retail and hospitality industries remains far above where it stood in the early 1970s. The same appears to be true of companies’ reliance on contractors and temps, which scholars say has helped weaken wage growth over the past several decades.Employers who outsource work to contractors or temps do not appear to have rethought those arrangements as a result of the pandemic, said Susan Houseman, a labor economist at the W.E. Upjohn Institute for Employment Research. She pointed to the temporary help industry’s return to close to its prepandemic share of employment and an increase in self-employment during the past two years.Gig companies whose apps allow people to find work as independent contractors say they have had an increase in workers over the last year or two. According to Uber, the number of drivers and couriers working through its service in a given month grew roughly 70 percent from January to October last year, or nearly 640,000.DoorDash said the number of people working through its delivery app as of the fall quarter had more than doubled during the pandemic, to over three million, and Instacart said the number of full-service shoppers on its service — those who shop for and deliver groceries — had increased by more than two and a half times, to over 500,000.The companies say that workers who use their apps value the flexibility of gig work, and that it helps sustain people during fallow periods or in places where work can be hard to find, such as rural communities. But gig jobs typically lack a variety of benefits and protections, like a minimum wage, and can reinforce economic insecurity.To Dr. Schneider, the Harvard sociologist, the insecurity that service workers continue to face during the pandemic, supposedly a period of unusual leverage, shows how resistant their industries are to changing.“I think it exposes something about how attached employers are to this just-in-time model,” he said. “This is something that goes to the heart of their business models.” More

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    For Retail Workers, Omicron Disruptions Aren’t Just About Health

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    Stores are shortening hours, fitting rooms are being closed and some employees can’t go on break. “Morale could not be lower,” one retail worker said.Long checkout lines. Closed fitting rooms. Empty shelves. Shortened store hours.Plus the dread of contracting the coronavirus and yet another season of skirmishes with customers who refuse to wear masks.A weary retail work force is experiencing the fallout from the latest wave of the pandemic, with a rapidly spreading variant cutting into staffing.While data shows that people infected with the Omicron variant are far less likely to be hospitalized than those with the Delta variant, especially if they are vaccinated, many store workers are dealing with a new jump in illness and exposures, grappling with shifting guidelines around isolation and juggling child care. At the same time, retailers are generally not extending hazard pay as they did earlier in the pandemic and have been loath to adopt vaccine or testing mandates.“We had gotten to a point here where we were comfortable, it wasn’t too bad, and then all of a sudden this new variant came and everybody got sick,” said Artavia Milliam, who works at H&M in Hudson Yards in Manhattan, which is popular with tourists. “It’s been overwhelming, just having to deal with not having enough staff and then twice as many people in the store.”Ms. Milliam, a member of the Retail, Wholesale and Department Store Union, is vaccinated but contracted the virus during the holidays, experiencing mild symptoms. She said that fewer employees were working registers and organizing clothing and that her store had been closing the fitting rooms in the mornings because nobody was available to monitor them.Macy’s said last week that it would shorten store hours nationally on Mondays through Thursdays for the rest of the month. At least 20 Apple Stores have had to close in recent weeks because so many employees had contracted Covid-19 or been exposed to someone who had, and others have curtailed hours or limited in-store access.At a Macy’s in Lynnwood, Wash., Liisa Luick, a longtime sales associate in the men’s department, said, “Every day, we have call-outs, and we have a lot of them.” She said the store had already reduced staff to cut costs in 2020. Now, she is often unable to take breaks and has fielded complaints from customers about a lack of sales help and unstaffed registers.“Morale could not be lower,” said Ms. Luick, who is a steward for the local unit of the United Food and Commercial Workers union. Even though Washington has a mask mandate for indoor public spaces, “we get a lot of pushback, so morale is even lower because there’s so many people who, there’s no easy way to say this, just don’t believe in masking,” she added.Store workers are navigating the changing nature of the virus and trying their best to gauge new risks. Many say that with vaccinations and boosters, they are less fearful for their lives than they were in 2020 — the United Food and Commercial Workers union has tracked more than 200 retail worker deaths since the start of the pandemic — but they remain nervous about catching and spreading the virus.At a Stop & Shop in Oyster Bay, N.Y., Wally Waugh, a front-end manager, said that checkout lines were growing longer and that grocery shelves were not being restocked in a timely manner because so many people were calling in sick with their own positive tests or those of family members.That has forced remaining employees to work more hours. But even with overtime pay, many of his colleagues are not eager to stay in the store longer than they must. Mr. Waugh has started taking off his work clothes in his garage and immediately putting them in the laundry before entering his house — a routine he hadn’t followed since the earliest days of the pandemic.Wally Waugh in his garage, where he changes out of the clothes he wears to work at a Stop & Shop to avoid possibly spreading the coronavirus.Sasha Maslov for The New York Times“People are not nervous like when Covid first started,” said Mr. Waugh, who is a steward for the Retail, Wholesale and Department Store Union. “But we are gravely concerned.”At a QFC grocery store in Seattle, Sam Dancy, a front-end supervisor, said many colleagues were calling out sick. The store, part of a chain owned by Kroger, has closed early several times, and customers are helping to bag their own groceries. There are long lines, and some of the self-checkout lanes are closed because employees aren’t available to oversee them.“Some people are so tired of what’s going on — you have some that are exposed and some that are using it as an excuse to not have to work to be around these circumstances,” said Mr. Dancy, a member of the local food and commercial workers union, who has worked at the chain for 30 years. “I have anxiety till I get home, thinking, ‘Do I have this or not?’ It’s a mental thing that I think a lot of us are enduring.”Shifting guidelines around isolation are also causing confusion at many stores. While H&M has instructed employees like Ms. Milliam to isolate for 14 days after testing positive for Covid-19, Macy’s said in a memo to employees last week that it would adopt new guidance from the Centers for Disease Control and Prevention that recommended shortening isolation for infected people to five days from 10 if they are asymptomatic or their symptoms are resolving.But even if retailers shorten isolation periods, schools and day-care facilities may have longer quarantine periods for exposed families, putting working parents in a bind.Ms. Luick of Macy’s said she felt the guidance was aimed at “constantly trying to get people to work,” and did not make her feel safer.Even as Omicron spreads faster than other variants, employers have not shown a willingness to reinstitute previous precautions or increased pay, said Kevin Schneider, secretary-treasurer of a unit of the United Food and Commercial Workers in the Denver area.Like many retailers, Kroger hasn’t provided hazard pay nationally since the early stages of the pandemic, though the union is negotiating for it to be reinstated. The chain has also discontinued measures like controlling how many customers are allowed in stores at a time. The union has been asking for armed guards at all of its stores in the Denver area as incidents of violence increase.“The company says they are providing a safe environment for workers to do their jobs in,” Mr. Schneider said. “We don’t believe that.”In a statement, a Kroger spokeswoman said, “We have been navigating the Covid-19 pandemic for nearly two years, and, in line with our values, the safety of our associates and customers has remained our top priority.”The company added that frontline employees had each received as much $1,760 in additional pay to “reward and recognize them for their efforts during the pandemic.”Some workers have reached another breaking point. In Jacksonville, Fla., one Apple Store employee organized a brief walkout on Christmas Eve to protest working conditions after he witnessed a customer spitting on his colleague. Dozens of people at other stores also participated.“It was my final straw,” said Daryl Sherman II, who organized the walkout. “Something had to be done.”In some cases, municipalities have stepped in to obtain hazard pay for workers. In Seattle, Kroger has been required to pay grocery store employees like Mr. Dancy an extra $4 an hour based on local legislation.“Some people are so tired of what’s going on,” said Sam Dancy, a front-end supervisor at QFC, a grocery store chain.Grant Hindsley for The New York TimesMore broadly, the staffing shortages have put a new spotlight on a potential vaccine-or-testing mandate from the Biden administration, which major retailers have been resisting. The fear of losing workers appears to be looming large, especially now.While the retail industry initially cited the holiday season rush for its resistance to such rules, it has more recently pointed to the burden of testing unvaccinated workers. After oral arguments in the case on Friday, the Supreme Court’s conservative majority expressed skepticism about whether the Biden administration had legal authority to mandate that large employers require workers to be vaccinated.The National Retail Federation, a major industry lobbying group, said in a statement last week that it “continues to believe that OSHA exceeded its authority in promulgating its vaccine mandate.” The group estimated that the order would require 20 million tests a week nationally, based on external data on unvaccinated workers, and that “such testing capacity currently does not exist.”When the top managers at Mr. Waugh’s Stop & Shop store began asking employees whether they were vaccinated in preparation for the federal vaccine mandates that could soon take effect, he said, a large number expressed concern to him about being asked to disclose that information.“It was concerning to see that so many people were distressed,” he said, though all of the employees complied.Ms. Luick of Macy’s near Seattle said that she worked with several vocal opponents of the Covid-19 vaccines and that she anticipated that at least some of her colleagues would resign if they were asked to provide vaccination status or proof of negative tests.Macy’s told employees last week that it would adopt new guidance from the C.D.C. that recommended shortening isolation periods.Jeenah Moon for The New York TimesStill, Macy’s was among major employers that started asking employees for their vaccination status last week ahead of the Supreme Court hearing on Friday and said it might require proof of negative tests beginning on Feb. 16.“Our primary focus at this stage is preparing our members for an eventual mandate to ensure they have the information and tools they need to manage their work force and meet the needs of their customers,” said Brian Dodge, president of the Retail Industry Leaders Association, which includes companies like Macy’s, Target, Home Depot, Gap and Walmart.As seasonal Covid-19 surges become the norm, unions and companies are looking for consistent policies. Jim Araby, director of strategic campaigns for the food and commercial workers union in Northern California, said the retail industry needed to put in place more sustainable supports for workers who got ill.For example, he said, a trust fund jointly administered by the union and several employers could no longer offer Covid-related sick days for union members.“We have to start treating this as endemic,” Mr. Araby said. “And figuring out what are the structural issues we have to put forward to deal with this.”Kellen Browning contributed reporting. More

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    For Many Workers, Change in Mask Policy Is a Nightmare

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    After a shift by the C.D.C., employers withdrew mask policies that workers felt were protecting them from unvaccinated customers.The Kroger supermarket in Yorktown, Va., is in a county where mask wearing can be casual at best. Yet for months, the store urged patrons to cover their noses and mouths, and almost everyone complied. More

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    ‘We Are Forgotten’: Grocery Workers Hope for Higher Pay and Vaccinations

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    #masthead-section-label, #masthead-bar-one { display: none }The Coronavirus OutbreakliveLatest UpdatesMaps and CasesSee Your Local RiskVaccine InformationCalifornia Anti-Vaccine ProtestsAdvertisementContinue reading the main storySupported byContinue reading the main story‘We Are Forgotten’: Grocery Workers Hope for Higher Pay and VaccinationsBooming business during the pandemic hasn’t always meant better wages, and they have largely been left off vaccine priority lists.Workers protesting outside the Food 4 Less in Long Beach, Calif. Kroger plans to close the store after the city required “hero pay” for grocery workers.Credit…Maggie Shannon for The New York TimesSapna Maheshwari and Feb. 8, 2021, 5:00 a.m. ETIt has been an exhausting 10 months for Toni Ward Sockwell, an assistant manager at Cash Saver, a grocery chain, in Guthrie, Okla. She has been helping to oversee about 40 anxious employees during a deadly pandemic, vigilantly disinfecting counters at the store and worrying about passing the coronavirus to her elderly mother while dropping off produce.News of the vaccines initially boosted her spirits, but her optimism faded as she learned that grocery store workers in Oklahoma would not be eligible for them until spring.“When they said we were Phase 3, I wanted to laugh,” Ms. Sockwell, 45, said. “We’re around just as many sick people as we are around nonsick people, just like health care workers, because we are always going to be open to supply food to the public.“Health care workers are heroes in my eyes,” she added. “But we are forgotten.”The race to distribute vaccines and the emergence of more contagious variants of Covid-19 have put a renewed spotlight on the plight of grocery workers in the United States. The industry has boomed in the past year as Americans have stayed home and avoided restaurants. But in most cases, that has not translated into extra pay for its workers. After Long Beach, Calif., mandated hazard pay for grocery workers, the grocery giant Kroger responded last week by saying it would close two locations.And now, even as experts warn people to minimize time spent in grocery stores because of new coronavirus variants, The New York Times found only 13 states that had started specifically vaccinating those workers.“Grocers are known to have these very thin margins, which they do, but they have been very profitable during the pandemic,” said Molly Kinder, a fellow at the Brookings Institution who has researched retailers’ pay during the pandemic. “Employers by and large, with only a few exceptions like Trader Joe’s and Costco, ended hazard pay months and months ago.”She added, “If you look at how the virus has gone since then, it’s so much more deadly now.”“We’re around just as many sick people as we are around nonsick people,” Toni Ward Sockwell said of grocery store workers like her. Credit…Nick Oxford for The New York TimesBrookings found that while 13 of the largest retail and grocery companies in the United States earned $17.7 billion more in the first three quarters of 2020 than they did a year earlier, most stopped offering extra compensation to their associates in the early summer. At the same time, some opted to buy back shares and gave big sums to executives.The tension is especially high on the West Coast, where cities like Los Angeles and Seattle have moved forward with mandates that require hazard pay for essential grocery workers — and are now facing threats of store closures and even an end to food bank donations from grocers.Bertha Ayala, who works at a Food 4 Less store in Long Beach, was ecstatic after the city enacted an ordinance last month requiring her store, which is owned by Kroger, to pay its workers an additional $4 per hour of “hero pay” to compensate them for the risks they face.“I love my job,” Ms. Ayala said. “But it has been very stressful.” She said the extra pay was welcome considering the high cost of living in Southern California and as a validation of her sacrifices in going to work.But only days after the additional money started flowing to Ms. Ayala and her colleagues, supervisors told the staff last week that Kroger was shutting down the store because of the hero pay requirement. Kroger also said it was closing a second store in Long Beach. The employees’ union said it had not been told whether Kroger would move the workers to other locations.Bertha Ayala, who works at the Food 4 Less in Long Beach, said the job “has been very stressful.”Credit…Maggie Shannon for The New York Times“Kroger is sending a message, more than anything else,” said Andrea Zinder, president of Local 324 of the United Food and Commercial Workers, which represents about 160 employees at the two stores. “They are trying to intimidate workers and communities: If you pass these types of ordinances, there will be consequences.”The Coronavirus Outbreak More