States enacting 3:1 ratio laws for retail self-checkouts

[TheFugitive]

Rhode Island has become the first state to enact a law regulating the ratio of employees to self-checkout kiosks, legally mandating a ratio of 1 employee to every 3 machines.

https://www.the-sun.com/money/16819223/aldi-self-checkout-regulations-staffing-ratio-rhode-island-law/

The employee must be dedicated to tending the machines and must not be assigned any other duties.

I think we've all had the experience of being in a store waiting for a self-checkout when the person ahead of us has an item that refuses to scan or requires ID for purchase and we have a lengthy wait for an actual employee to show-up and address it.  This law is apparently intended to address that.  It also claims to reduce the stress burden on employees.  Additionally the claim is that this will reduce shoplifting since that occurs far less frequently at manned checkouts (many retailers were already dialing back on their self-checkouts for this reason).

The article mentions a number of other states which are considering similar laws.  Aldi appears to be the primary target of this, which personally causes me to wonder whether lobbying from more established grocery chains could be behind it.  In order to comply with the law they will be forced to boost prices in order to fund the additional labor costs.

The Rhode Island law provides some exceptions for off-peak hours or when an emergency is declared (i.e. heavy snow is forecast and everyone within a fifteen mile radius crashes the doors to buy milk and toilet paper).

[BillyGr]

The article mentions a number of other states which are considering similar laws.  Aldi appears to be the primary target of this, which personally causes me to wonder whether lobbying from more established grocery chains could be behind it.  In order to comply with the law they will be forced to boost prices in order to fund the additional labor costs.

Not sure why they would have to do that, they operated stores for a long time without self-checkouts and some locations still do not have them.  Plus, they were dumb and made those self-checks that do exist only take cards which is senseless as those who might logically use them (small purchases) will often use cash for that smaller amount.

[TheFugitive]

The article mentions a number of other states which are considering similar laws.  Aldi appears to be the primary target of this, which personally causes me to wonder whether lobbying from more established grocery chains could be behind it.  In order to comply with the law they will be forced to boost prices in order to fund the additional labor costs.

Not sure why they would have to do that, they operated stores for a long time without self-checkouts and some locations still do not have them.  Plus, they were dumb and made those self-checks that do exist only take cards which is senseless as those who might logically use them (small purchases) will often use cash for that smaller amount.

My local Aldi is one of those which put in self-checkouts that only accept cards.  For that reason I rarely use them.  The labor savings from only having to staff one checkout allows them to keep prices low.  It would not be the first time that business competitors who could not match that advantage would instead turn to government lobbying to help level the playing field.

[BillyGr]

The article mentions a number of other states which are considering similar laws.  Aldi appears to be the primary target of this, which personally causes me to wonder whether lobbying from more established grocery chains could be behind it.  In order to comply with the law they will be forced to boost prices in order to fund the additional labor costs.

Not sure why they would have to do that, they operated stores for a long time without self-checkouts and some locations still do not have them.  Plus, they were dumb and made those self-checks that do exist only take cards which is senseless as those who might logically use them (small purchases) will often use cash for that smaller amount.

My local Aldi is one of those which put in self-checkouts that only accept cards.  For that reason I rarely use them.  The labor savings from only having to staff one checkout allows them to keep prices low.  It would not be the first time that business competitors who could not match that advantage would instead turn to government lobbying to help level the playing field.

The point being that the ones without self-checkout (or others that didn't have it in the past) never had more than one or two checkouts open regularly.  They'd simply call someone else up from whatever they were doing (stocking, cleaning etc.) to open another as needed, so they can run without adding costs if they just use regular registers if that became needed with these silly rules.

[TheFugitive]

100% correct, the rules will add costs.  Which is why I'm convinced that Aldi's competitors had a hand in lobbying to pass them.

[BillyGr]

100% correct, the rules will add costs.  Which is why I'm convinced that Aldi's competitors had a hand in lobbying to pass them.

Not sure what you aren't getting, it will NOT ADD COSTS as the employees are already working in the store - they won't have to hire anyone else.
They only run ONE checkout normally - if the line gets too long they hit a buzzer and someone else stops stocking or whatever and comes up to run a checkout until the line is gone then goes back to doing whatever else.

So, they will still have the exact same number of staff and payroll, just used differently if and as needed - which is how they run and have since they existed!

[TheFugitive]

The text of this new law specifically states that the employee tasked with overseeing those 3 self-checkouts must not be assigned any other duties or responsibilities.

This totally undercuts Aldi's operational model.  That employee will basically be chained to the self-checkout area and not allowed to perform any other tasks.

[BillyGr]

The text of this new law specifically states that the employee tasked with overseeing those 3 self-checkouts must not be assigned any other duties or responsibilities.

This totally undercuts Aldi's operational model.  That employee will basically be chained to the self-checkout area and not allowed to perform any other tasks.

Or they just DONT USE SELF CHECKOUTS and work the same way with the same staff as they did for DECADES before self-check even existed!  That was the point, they can run with a low staff level even without using self-check AT ALL.

[TheFugitive]

Right now the self-checkouts appear to be overseen by one employee, who is also stocking shelves and running the manned register.  Once this new law takes effect that will become illegal and they'll have to hire somebody else just to stand over and watch the self-checkouts.

[BillyGr]

Right now the self-checkouts appear to be overseen by one employee, who is also stocking shelves and running the manned register.  Once this new law takes effect that will become illegal and they'll have to hire somebody else just to stand over and watch the self-checkouts.

Which part of don't USE the self checkouts is not clear?  If they don't use them, they do NOT need an employee to watch them - then the store runs exactly the same way it did (and with the same amount of staff) as it is today and as it was before self-check existed :)

They don't have to follow the new law if they no longer offer self-checkouts to customers :)

Although the law says no other duties - but if someone is doing only one thing (running the checkouts), they could be running 1 regular and 2 self or 3 self - they are still doing only one thing - running checkouts.  That may be a second option that may not be the spirit of the law but follows the actual wording of it ;)

[TheFugitive]

What you say is true.  However, if they get rid of the self-checkouts they will either have to put more cashiers on staff, or make customers wait in long lines to use the one staffed checkout.  Forcing Aldi to add cashiers does the same to their payroll budget as chaining one to the self-checkouts, perhaps more so.  I suppose that making everyone wait in a long line with signs posted telling them to blame the State of Rhode Island is an option.

[BillyGr]

What you say is true.  However, if they get rid of the self-checkouts they will either have to put more cashiers on staff, or make customers wait in long lines to use the one staffed checkout.  Forcing Aldi to add cashiers does the same to their payroll budget as chaining one to the self-checkouts, perhaps more so.  I suppose that making everyone wait in a long line with signs posted telling them to blame the State of Rhode Island is an option.

But again, they would not have to do either. 
They'd simply go back to how they did things before self-checkout existed.

One cashier up front full time - when more than (say) 3 people are lined up they hit a button and one of the employees working on the floor comes up to ring people out.
 
When the line goes away, that person returns to other duties.  Repeat as needed.

So, no ADDITIONAL employees needed.  Just repurposing those already working there :)

That was always part of their cost savings - having employees that were always working, never just sitting/standing by a checkout waiting for someone to be ready to get rung up.  It worked quite well, and still does as there are still older stores that don't have self-check options.

[TheFugitive]

They eliminated a job or two when they installed self-checkouts.  That was the entire reason why they did it. When I was in retail management executives would lay awake every night trying to figure a way to cut one $3.35 an hour cashier out of the schedule. Your idea would take them back to their old cost structure, which achieves the same end.  Granted I think your idea has some merit when you consider the savings from ending the leases on self-checkout equipment, and the reduced theft as proponents of the new law have said.

[BillyGr]

They eliminated a job or two when they installed self-checkouts.  That was the entire reason why they did it. When I was in retail management executives would lay awake every night trying to figure a way to cut one $3.35 an hour cashier out of the schedule. Your idea would take them back to their old cost structure, which achieves the same end.  Granted I think your idea has some merit when you consider the savings from ending the leases on self-checkout equipment, and the reduced theft as proponents of the new law have said.

Seems odd that they got rid of anyone, since those employees would still be needed elsewhere (and one might think more over time as the stores grew a bit - thus more things to stock).  But who knows :)