Dive Brief:
- Fareway Stores will distribute a second round of cash bonuses to hourly employees who have worked on the front lines during the coronavirus pandemic, according to a press release.
- Each of Fareway’s 10,200 front line employees who worked in July or August and were still employed as of Aug. 22 will receive up to $500. The company will distribute the bonuses, which it said to total "several million dollars," on Sept. 4.
- The Midwestern grocer, which operates 123 stores in six states, is currently recruiting workers for many of its retail locations and its distribution center.
Dive Insight:
Fareway joins many grocers that have renewed bonuses or extra pay for hourly employees after food retailers faced criticism for ending or scaling back additional compensation provided during the pandemic.
In July, North Carolina-based chain Ingles Markets distributed a total of $5 million in bonuses to its hourly employees. Prior to that, Walmart announced it would also pay employees another round of cash bonuses, while Target and Stop & Shop said they would continue to pay employees their additional hourly compensation.
However, other grocers, like Albertsons and Kroger, ended their hazard pay programs. This drew backlash from labor officials, which resulted in Kroger offering its employees a one-time bonus in May. The bonus was $400 for full-time employees and $200 for part-time workers.
Fareway’s bonuses are steeper than those paid by other retailers. Full-time employees of Walmart and Ingles received $300, while part-time employees got $150.
In a first round of bonuses announced in March, Fareway provided an additional 20 or 40 hours of paid time off respectively to part- and full-time hourly workers, who could turn the extra time off into a cash payment. The company also said it would give its hourly employees under the age of 18 a one-time cash payment.
