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On heels of ending ‘hero bonus,’ Fred Meyer set to give workers extra one-time payment

The payment will go to hourly grocery, supply chain, manufacturing, pharmacy and call center associates.
Credit: AP
Fred Meyer

PORTLAND, Ore. — Kroger, which owns Fred Meyer, announced on Friday it will be giving front-line workers a one-time “thank you pay” bonus.

The payment will go to hourly grocery, supply chain, manufacturing, pharmacy and call center associates. Full-time associates will receive $400 and part-time associates will get $200. It will be paid out in two installments on May 30 and June 18.

The move comes after the company decided to end its “hero bonus” for front-line workers. The additional $2 hourly bonus has been paid since late March in response to the added health-risk workers take on during the coronavirus pandemic. The last of the hero bonuses will be paid by May 23, the company said.

Earlier this week, the president of the UFCW local 555, which represents grocery store workers in the Portland metro area, said the union was asking Fred Meyer and Kroger to extend the bonus pay until Oregon Gov. Kate Brown ends the state's emergency order.

"I'd like them to tie the hazard pay to the emergency order. Once that's over, if they cut the hazard pay, I'd still like my members to get it, but at least that makes sense, whereas their current position doesn't," said Dan Clay.

When the hero bonus was announced on March 31, Kroger, the largest grocery chain in the country, lauded its employees.

"The true heroes in this story are our associates, and we want to provide them with additional resources and support to help them continue their remarkable effort," said Rodney McMullen, the chairman and CEO of Kroger.

In a statement emailed to KGW on Wednesday, Kroger justified its decision to end the bonus pay:

"Our temporary Hero Bonus is scheduled to end in mid-May. In the coming months, we know that our associates' needs will continue to evolve and change as our country recovers," the statement read. "Our commitment is that we will continue to listen and be responsive, empowering us to make decisions that advance the needs of our associates, customers, communities and business. We continuously evaluate employee compensation and benefits packages."

The new "thank you pay" bonus isn't the first time Kroger has offered its employees a one-time payment during the pandemic. In early April, the company paid a one-time bonus of $300 to every full-time worker and $150 to every part-time worker.

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