14Public Comment
From: Jennifer Ward <jward@ocbc.org>
Sent: Friday, May 14, 2021 1:15 PM
To: Public Comment
Subject: 5/18/21 - Item 14
Attachments: Hazard Pay Proposal_OCBC Oppose_Anaheim.pdf
Good Afternoon,
OCBC respectfully submits the attached letter in opposition to the City Council's proposed premium pay ordinance.
Thank you,
JJ e ffe I l"DaIId
Sr. Vice President of Advocacy and Government Affairs
Orange County Business Council
2 Park Plaza, Suite 100 1 Irvine, CA 92614
C: 1 0: 949.794.7215 1 jward@oc,bc .org
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BUSINESS COUNCIL 2 Park Plaza, Suite 100 ( Irvine, CA 926141 P 949.476.2242 ( F 949.476.0443 ( www.ocbc.org
May 14, 2021
The Honorable Harry S. Sidhu
Mayor
City of Anaheim
200 S Anaheim Boulevard, 7th Floor
Anaheim, CA 92805
RE: Premium Pay for Grocery Workers — OPPOSE
Dear Mayor Sidhu and Members of the City Council,
Orange County Business Council (OCBC), the leading voice of business in Orange County, is a strong
advocate for balancing support for workers with relief for businesses also reeling from the pandemic. A
premium pay ordinance for grocery workers will impose financial harm on employers at the worst
possible time, while also unintentionally damaging workers and ultimately consumers and residents.
OCBC expresses our opposition to a local mandate requiring premium pay for any workers and
asks the City Council to consider the full economic impacts of such a mandate.
Local grocery stores, retailers and other essential employers are committed to paying competitive wages
and benefits to their employees. Since the start of the COVID-19 pandemic, they have invested
significantly in infrastructure and enhanced safety protocols to protect frontline essential workers and
shoppers. They have also provided incentive pay, bonuses and additional health benefits. According to
an economic study released by the California Grocers Association, up to an additional $5/hour increase
in pay could raise grocery prices by about $400 annually for the typical family of four at the worst
possible time. A hazard pay ordinance could also harm workers, rather than help them. The study
concluded if grocers must offset savings in operational costs, they would need to reduce work hours by
24 percent across the board. Higher costs could even force employers to shutter store locations.
Furthermore, higher costs will ultimately be borne by consumers and community members in the form of
increased prices, at a time when many families and residents are already economically burdened.
Orange County has made significant strides in reducing COVID-19 cases and vaccinating more and
more people, reaching the least -restrictive yellow tier thresholds. Additionally, the Governor just released
a record -high budget spending proposal with significant economic relief bolstered by the State's
unprecedented revenue windfall. Now is not the time for local government to be mandating premium pay
requirements to be paid for by local employers. The City of Tustin recognized the pitfalls of this
proposal; OCBC hopes the City of Anaheim will join them in rejecting a premium pay measure. For
these reasons, OCBC opposes a premium pay ordinance and strongly urges the Council to
reevaluate this impactful policy.
Sincerely,
Jennifer Ward
Senior Vice President of Advocacy and Government Affairs
THE LEADING VOICE OF BUSINESS IN ORANGE COUNTY