When the risk normalizes, the pay can be normalized. Until then, front line workers deserve some kind of premium over normal risk level working conditions.

I believe all retailers should keep paying their employees the extra pay a lot longer. They have been essential since day one, and they are still putting their health on the line every day they work.

Has the frontline work become less hazardous? I don’t think so. Increasing wages was the right thing to do during the height of the pandemic and the companies that did increase wages were held up as exemplars of how to treat employees. However grocery/essential goods retailers operate in a low margin environment that cannot absorb a significant, across-the-board wage increase and maintain sufficient profitability. It was inevitable that these extra pay programs would come to an end, but now the optics will make this problematic. Does the reduction in pay mean that frontline workers are no longer heroes? Does it mean that the work environment is safe now? I think the answer is no to both. Kroger took the lead and I believe others will follow.

It would be a nice gesture to keep wages higher. However, while sales have risen sharply for most grocers, profits have not and the higher cost of doing business has taken its toll. As much as I would like to see frontline grocery workers paid more, sound economics do need to prevail at some point. However, that point is not now when we are still in the middle of the crisis.

From a social perspective, they, like first responders, don’t get paid nearly enough. From a capitalist perspective, with unemployment as high as it is, wages are going to decline in many places. As long as stores refuse to force mask-wearing or social distancing, (hello, Kroger) their workers need hazard pay. At places that do enforce the rules, wage supply and demand is going to take over.

And everyone watches what a Kroger or a Walmart does and follows along – some lead, most follow.

So it took less than two months. I don’t know if anyone should be surprised that this has ended. But I am somewhat surprised it is ending so soon. I don’t see any less risk compared to eight weeks ago. No therapeutics yet, no vaccine. If anything the risk has been going up with reopening and some people refusing to wear masks.

But then we are a capitalist country. It’s a demand/supply equation. But decisions like these will have an impact on consumer psyche, as negative press is very likely. So Kroger and others that will follow soon should be careful.

There is no doubt that grocery employees are putting themselves in a risky environment at work by interacting with the general public, as not all customers are taking the proper precautions. Giving these employees extra pay for “hazardous” duty is the right thing to do, however, it probably isn’t viable to continue the extra pay forever. The timing of when to discontinue may depend on the status of each specific state. Using a factual data-driven decision-making process may make the most sense, such as when the new COVID-19 cases drop for a number of days or reach a low threshold.

All of us that have worked in the grocery retailing and wholesaling business know margins are very thin. However, during this time of absolute need (and big sales increases for the retailers) the higher wages should continue. These workers are risking themselves and their families by coming into work everyday to help feed America. I was surprised and somewhat shocked Kroger made this move this early in pandemic. This was a mistake, especially when you consider Walmart and others are extending the higher wages. In the end, the workers will decide where to work and they will remember and recognize with loyalty the retailers that have stood by them.

Grocers can start withdrawing their “hero bonus” when the pandemic is over. It isn’t.

Kroger and its peers knew the pay increase was temporary, yet didn’t communicate an end date up front to manage expectations. In addition, the crisis is far from over, so removing hazard pay now raises many questions about how much these companies actually care about their frontline workers. The lack of transparency and poor communication is turning what was a PR coup into a PR disaster, and much of the good will earned has been lost. Other companies need to take note.

It’s easy to sit on the sidelines and award these great workers money out of other people’s pockets, but we have to remember that even with the dramatic volume increases grocery is still a penny or two per dollar net income business. Supermarket operators are very well aware of the additional profit they’ve earned. They also know the cost for those extra earnings. If they’re transparent with their team members and reward them based on added output, the workers, shoppers and the community will be more than satisfied.

It has to continue. Hopefully Kroger just needs some adjustment time to catch-up to the evolving pandemic timing.

Nobody even understands all the risks yet. Having said that, it’s up to us, the “experts” and the consumers to understand that all this is going to cost us more.

Being a retailer got more expensive – cleaning, PPE, and bonuses to frontline staff are all expenses that need to get covered, without even starting to think about supply shortages and how that impacts prices.