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At What Cost? The Pending Employment Crisis Under Obamacare

By Brockston Posner Smuck

The fiscally irresponsible nature of the Democratic Party has already started taking its toll on the U.S. job market in less than one week after the President’s re-election.

Within a few days after Election Day, numerous companies across America, both large and small, have announced employee layoffs and hour reductions.  The reason?  The relative certainty that the Patient Protection and Affordable Care Act will remain on the books.

Companies will no longer be able to afford to keep as many full time employees on their rolls due to the Act’s requirement that all companies now provide healthcare coverage for employees who work over 30 hours a week.  This, combined with the rising cost of health care coverage, is forcing companies to reduce their labor force and reduce many full time employees to part-time status.

Between November 6th and November 14th 2012, layoffs and hour reductions have been announced in numerous companies spanning many industries including Papa John’s Pizza, Apple-Metro – a major Applebee’s franchisee, Cummins, Abbot Laboratories, Boston Scientific, and Stryker Corporation.  Many CEOs such as Papa John’s John Schnatter have been forthcoming about the layoffs being directly related to the rising operating costs brought on by the Act.  The Left’s response to this? The typical liberal attempt to boycott these companies.  The fallacy within this attempt is that it will hurt the employees even worse.  Refusing to buy the products will only serve to cause more layoffs and underemployment.

These recent layoffs are merely the tip of the iceberg. Douglas Elmendorf, director of the Congressional Budget Office, has projected that the Act will cause 800,000 jobs to be lost – this number doesn’t even include projected work hour reductions.

The only viable solutions to this coming crisis are either a full-scale repeal of the Act or a series of amendments that cushion the blow to America’s job creators.

 

6 comments

  1. While I appreciate the article Brock has written, I think some further research needs to be done. As a former PJ’s employee, I can tell you PJ’s only allows 2 full time employees per store–the GM and the shift runner. Both are salaried positions so cutting back hours of full time employees would have no bearing on the bottom line. The delivery drivers and insiders all are not allowed to work more than 35 hours per week. Once an employee is getting near the 34 hour mark the manager is forced to sign them out and send them home. I just don’t know who these full time in-store hourly employees are. If Schnatter is so concerned about the bottom line, perhaps cutting down wasteful spending(a conservative idea) like giving away 2 million pizza’s this year in a football promotion or cancelling the sponsorship of Entertainment Tonight would serve him better. This man takes and takes and takes, when gas prices skyrocketed, he initiated a one dollar delivery fee. Most people assumed that dollar went to the delivery driver,it didn’t and still doesn’t. It’s used to offset the price of gas the trucking companies charge for delivering the product to the stores. As a former driver, I can attest to the fact that that charge significantly decreased the tips we received. He has also implemented a sliding pay scale for his drivers, if you’re out on the road making deliveries–essentially doing your job– you get paid less than being in the store. His thinking is simple if you’re making a delivery you’re going to get a tip therefore we don’t have to pay you as much. In a perfect world that would be okay, but more than half the time the tips drivers receive is literally the “change”. I’m rambling… but before criticizing the criticism, we all need to take a step back and do our due diligence.

  2. This is such a great article! I agree completely! It’s nice to finally see someone writing about the truth.

  3. The wasteful spending that everyone seems to be getting worked up about is not a waste of money or a business would not do it; it is a marketing gimmick. Businesses rarely do anything out of the kindness of their hearts. They are giving away pizza for 1. Getting the brand name out there and letting people know they are “Good Guys”, 2. Establishing new customers who would not try their food otherwise, and 3. For every pizza they give away they are going to have people that buy their over prices sodas and bread sticks. This and Entertainment tonight are all promotional items for PJs. If Papa Johns wasn’t such a big football supporter I would probably not even think about ordering a pizza from them, the same for Entertainment Tonight, My wife watches that show so she is more likely to think of Papa Johns know when wanting a pizza. If Romney was elected and some liberal company did the same thing they would be praised by the media for taking a stand, but if you stand up to Barry or any other liberal point of view with the current state of the media you are public enemy #1.

  4. Just curious, which CBO report are you referencing?

  5. Here’s a thought, if what “Less Humid” says is true of this company, then the workers will probably be glad to be laid off by a company that doesn’t pay them a fair wage, etc. Maybe they can find better jobs at an independent pizza shop and help a smaller business grow. A huge corporation like Papa John’s that can’t even pay their drivers a fair wage and we really expect them to offer benefits??? It’s time we as Americans stand together against these practices! Every American should be able to have a job where they can have a living wage. I assure you, Papa John’s isn’t going to go out of business any time soon if they pay their workers more fairly. Just google “Papa John’s owner’s house” We need to shift our focus from corporations, to building and maintaining smaller business. No one needs Papa John’s and all of these other corporate places which are dishing out inferior food products. Many local places have much better food than these chains, sometimes even from family pizza recipes that were brought over from Italy, etc. What we don’t realize now because we have been so brainwashed by the liberal media, is that the bigger these chains grow and become the norm, the more we loose our cultural identity- mom and pop restaurants go out of business, we loose a bit of our history, our culture. How many of you know a family restaurant business that has been open for several generations that is struggling? Every time we loose a place like this to a Papa John’s, we loose a bit of our identity, of the diversity that made this country a once vibrant melting pot of cultures, ideas and aspirations. Isn’t that what the American dream is about? Having the freedom to choose instead of one major chain being forced on us, forcing every other place out of business? That doesn’t sound like freedom to me, to me it sounds like someone is already making a decision what I’m going to eat tonight. When you encounter a town that has nothing but major chain restaurants you will see how limited your options become. Now is the time we reevaluate what is important to us as Americans and what we are going to fight for in the future

  6. Just look at those guys in the photo, they aren’t happy about any of this. Even if the company didn’t lay off workers, how are they expected to pay for health insurance on such a meager wage?

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