Major retailers like Walmart will see their self-checkout operations vastly reduced by a newly passed Long Beach City Council ordinance. The law, which takes effect immediately, imposes a $2,500 penalty for every violation related to the insufficient staffing at self-checkouts.
Highlights of the new Ordinance
In accordance with the new rules:
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- Employee Monitoring Limits: Each employee is allowed to keep an eye on a maximum of two self-checkout machines.
- Mandatory Staffed Registers: Stores are in charge of having at least one traditional checkout lane with a staff member available at all times.
- Fines for Non-Compliance: A $2,500 fine per violation is given, for each self-checkout lane that is over the staffing limit.
It has been brought to the public’s attention that crime rates in Long Beach have gone up by 16% from 2023 to 2024 and were cited as the foundation of the ordinance. The Council members think that having a human presence near the terminals is the way to go to reduce theft and raise store security.
Arguments For and Against the Ordinance
Positive response and affirmation for the measure are coming from the labor groups such as the United Food and Commercial Workers Union Local 324. Linda Molina, who is a representative of the Union, said, “More people on the job means less theft and safer stores.” The supporters contend in addition to lower crime, the shall also create more jobs.
Conversely, business organizations that are members of the California Retailers Association in addition to the Long Beach Chamber of Commerce are the ones expressing doubts. They indicate that the ordinance will drive up the operational costs and may cause the prices of the goods to go up. Celeste Wilson from the Chamber is quoted as saying, “All it really does is pump up expenses without tackling the root of the problem.”
Implications for Retailers
Retailers like Walmart, who have heavily invested in self-checkout technology to their reduce labor costs, now encountered operational issues which due to happier customers result in increased employee numbers in stores. The need of extra personnel may lead to a reconsideration of the current business models and staffing strategies.
Non-compliance with the ordinance would lead to very high daily fines, especially for stores with multiple self-checkout lanes. This could possibly make the retailers rethink both the technology and human contribution in their operations.
Potential Nationwide Impact
The regulatory may be for now confined to Long Beach only, but the problem is likely to arise in different cities where the issue of retail theft and the use of automated systems are concerned. The implementation of this ordinance elsewhere may cause the outlets to revise their self-checkout procedures nationwide.
