In the face of a global crisis, the tale of a grocery chain CEO’s skyrocketing profits unveils the harsh reality of corporate greed at the expense of frontline heroes.
In a shocking display of greed, Kroger grocery stores’ CEO, Rodney McMullen, pocketed a staggering $22.4 million, while simultaneously slashing the wages of his dedicated frontline workers during the peak of the pandemic. As McMullen’s pay soared, those on the frontlines saw their livelihoods drastically reduced, undermining the American value of rewarding hard work and dedication.
Despite McMullen seeing a near 6% increase in his compensation during the pandemic, the average Kroger employee saw their wages decrease by over 8%. These are the very people who risked their health and lives to keep the country’s largest grocery store chain operational during the global crisis. Their median annual pay is a paltry $24,600, a fraction of the millions McMullen earns.
Headquartered in Cincinnati, Ohio, Kroger boasts a workforce of a colossal 465,000. Yet, in the face of the pandemic, McMullen displayed an astonishing disregard for these employees, swiftly terminating the “Hero Bonus” – a modest $2 per hour increase for frontline workers in stores and warehouses.
In May 2020, as the pandemic wreaked havoc across the country, McMullen unceremoniously ended the “Hero Bonus”. A Bloomberg article at the time succinctly captured the essence of this decision: “The hazard pay is disappearing. The hazard is not.”
Frontline workers were understandably appalled at McMullen’s decision. They had been working tirelessly, risking their health to keep the grocery chain operational during an unprecedented global health crisis. Yet, while they were putting their lives on the line, McMullen was busy fattening his personal compensation package.
One Kroger worker aptly summed up the sentiment among the workforce: “How do you go from a hero to zero when there’s still a pandemic out there?”
In an audacious move, Kroger has chosen to shutter stores rather than comply with city ordinances mandating hazard pay for grocery store employees. The company appears to prefer closing locations over ensuring fair compensation for their frontline workers, demonstrating a blatant disregard for their employees’ well-being.
When confronted by Bloomberg regarding this alarming disparity in wealth distribution, a Kroger spokesperson attempted to deflect blame from McMullen, citing plans to award a $100 bonus to any worker who received the COVID-19 vaccine.
Despite the ongoing pandemic, frontline workers were expected to risk their lives to keep businesses open. However, the windfall profits were not distributed equally. Reports indicate that billionaires saw their wealth increase by a staggering 54% during the pandemic. Meanwhile, the average compensation for the CEOs of the nation’s 300 largest companies rose from $12.8 million to $13.7 million.
These figures paint a grim picture of the pandemic’s impact on America’s working class, emphasizing the widening wealth gap and the need for corporate responsibility and fair wage practices.
Source: AWM