Trader Joe’s Doubles ‘Thank You’ Wage, Soups Up Sick Leave
Hazard pay ordinances prompt premium pay raise. Trader Joe’s increases its “thank you” wage from $2 to $4 an hour, and extends paid sick leave in wake of government-mandated hazard pay ordinances.
February 3, 2021
Amid a growing number of government-mandated hazard pay ordinances designed to increase compensation for hourly grocery workers during the ongoing pandemic, Trader Joe’s has increased its “thank you” wage—which was an additional $2 an hour—to $4 an hour effective Feb. 1. Multiple cities in California, including most recently Los Angeles, as well as Seattle, have voted to approve grocery hazard pay mandates.
“With Trader Joe’s announcing today it will provide new hazard pay to their workers nationwide, it’s clear that some companies are stepping up to do the right thing for these essential workers,” UFCW International President Marc Perrone said in a statement.
The UFCW, which represents 1.3 million workers in grocery, meatpacking and other front-line industries, also applauded the Los Angeles City Council’s unanimous vote on Feb. 2 in favor of a new grocery hazard pay mandate.
“Today’s unanimous vote by the Los Angeles City Council for grocery worker hazard pay sends another powerful message that the safety of grocery workers must come first,” added Perrone. “From Long Beach to Los Angeles, and all across this country, brave essential workers have been risking their lives to keep food on the table every day during this crisis, and these brave men and women have earned and deserve hazard pay.”
In addition to its now $4-an-hour premium pay, the Monrovia, Calif.-based Trader Joe’s is also offering additional paid-for sick time to all crew members. “To better support each crew member in making community-minded decisions, since March 2, we have been providing up to two weeks of additional paid sick time to crew members who have any symptoms of illness," says Trader Joe’s website.
“Moreover, during this time, we have offered crew members a few additional ways to qualify for and maintain health insurance,” the company continues. “We want crew members to have the opportunity to take extended time off without repercussions to their benefits.”
Prior to the additional hazard pay and paid sick leave benefits for its crew members, Trader Joe’s had already set an industry standard for compensation and health benefits.
In an interview with WGB late last year, a former Trader Joe’s employee said, “In addition to higher [than average grocery store] base pay, employees are making $2 an hour more because of COVID, and there are great medical benefits. [Trader Joe’s employees] call it the 'golden handcuffs.' You can’t find benefits like that anywhere else so people who work there, typically stay there.”
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