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10 (4)Public Comment From: Heather Sievers <heather@anaheimchamber.org> Sent: Tuesday, May 11, 2021 12:56 PM To: Public Comment Subject: Letter from Anaheim Chamber Chairman, Ross McCune Attachments: 5.11.21 Anaheim Hazard Pay Oppose.pdf Please see attached letter for tonight's City Council meeting from Ross McCune, Chairman, Anaheim Chamber of Commerce. Best Regards, Heather Sievers Director of Events Anaheim Chamber of Commerce 2099 S. State College, Ste. 650 Anaheim, CA 92806 he2.thr(nhirnch rnr.:_corg 714.758.0222 May 11, 2021 Mayor Harry Sidhu Members of the Anaheim City Council 200 S. Anaheim Boulevard Anaheim CA 92805 Dear Mayor Sidhu and members of the City Council: On behalf of the Anaheim Chamber of Commerce, which represents the business community in this great city, I urge you to reject any form of a proposed "hazard pay" ordinance. These premium pay ordinances are misguided and counter-productive. They are bad public policy that are harmful to employers, workers and ultimately working families. It is unnecessary, for one thing. The average pay for Southern California grocery workers, for example, is above $18 per hour — well above the minimum wage. In fact, since the pandemic began, grocers have increased hourly wages at times by an average of an extra $2-$3, as well as increased paid time off and sick leave, spot bonuses and other benefits. Grocers have also invested heavily in worker safety. The rhetoric of hazard pay proponents ignores the economic reality that supermarkets, retailers, etc. — whether large chains or small mom -and -pops - are thin -margin businesses. Labor costs are already one of their biggest costs, and premiums pay will spike those costs by 25% to 30%. Targeting these businesses for a large wage hike will result in layoffs or reduced hours for workers, or even store closures — as has happened in Los Angeles County in the wake of similar "hazard pay" ordinances. The misleading Brookings Institute study cited by Councilman Jose F. Moreno doesn't include smaller ethnic and family-owned grocery stores. These are the stores that serve communities like West Anaheim that have lost chain supermarkets. Premium pay is a very real threat to their ability to continue serving the communities that depend on them. Government actions do not take place in a vacuum. Experience in Long Beach provides a cautionary tale -- unfunded mandates will have negative consequences. We are already experiencing rising food prices locally and nationwide. This increases disproportionately hurt poor and working families. Business targeted by these "hazard pay" wage increases will defray the additional cost by passing it along to consumers in the form of higher prices. Build a Strong Local Economy Promote and Brand the Anaheim Community Create Networking through Business Development Opportunities Represent Business Interests in Government Political Action Page 2 Proponents of premium pay claim grocery and retail employees were in greater danger by being at home. According to a new study by the National Bureau of Economic Research, workers were 4-5 times safer at their workplaces due to investments in safety protocols by employers. The COVID-19 pandemic economic lockdowns have been devastating for Anaheim businesses, hundreds of which have closed forever, while hundreds more have struggled to keep their doors open and their employees working. Thankfully, Anaheim's economy is turning the corner, led by the phased re -opening of the Disneyland Resort. More than 60% of Anaheim residents have received at least their first COVID-19 vaccination shot — which provides in excess of 80% protection against the virus. Vaccinations will continue, and the focus on the hardest hit Anaheim neighborhoods is accelerating. At long last, our businesses see a light at the end of the tunnel as state -imposed operating restrictions are being lifted. The last thing these weakened and still -struggling businesses need is to be walloped with an arbitrary and unnecessary wage increase. A premium pay ordinance would also undermine revitalization efforts in West Anaheim, especially efforts to lure grocers and retail. Its adoption would send a powerful signal to those looking at investing in Anaheim that they should look for more business -friendly communities. This is a cynical union ploy to exploit the tragedy of the COVID-19 pandemic to secure by government fiat wage increases they cannot obtain at the bargaining table. This "hazard pay" ordinance is a true example of picking winners and losers. This economically destructive proposal is unjust, unfair and unnecessary. No one is helped by store closures, lost jobs and higher food prices. We urge you to vote against any further consideration of this terrible policy proposal. Sincerely, Ross McCune Chairman Anaheim Chamber of Commerce Build a Strong Local Economy Promote and Brand the Anaheim Community Create Networking through Business Development Opportunities Represent Business Interests in Government Political Action