Papa John's CEO John Schnatter Says Company Will Reduce Workers' Hours In Response To

Simple minded you say? But didn't you see that chart about how the top 10 educated states voted? I'm sure you did. What did Santorum say about never having the smart people on the republican side?

 

What can a leader do to reduce cost and decrease debt?

I agree we need a strong military but why do we need it camped out all over the world?

 

These companies have a fiduciary responsibility to their shareholders. For that reason, they cannot just eat the cost and lower their bottom line. Doing so would subject them to liability to their shareholders. So their realistic choices are to pass that cost onto the consumers (raise prices) or adjust their workforce accordingly to make up the cost.

It really isn't that hard to understand once you wrap your brain around the concept that these companies aren't just piggy banks for the government.

 

No they don't. They have a contractual obligation to pay them for work performed and provided. That's it.

 

Trickle up poverty is on it's way.

 

The shareholders of these companies (which include many 401k plans of middle class workers) disagree entirely.

Take the case of Kroger as an example. It has been a long time since I worked in the grocery industry, but when I did, the average profit margin of a grocery store was 1%. Any significant uptick in their overhead costs would cause the stores to be unprofitable unless they raised prices. That's right, it would not be the corporation paying for it, it would be the families going to buy groceries.

It's called real life.

 

Fired from a pizza chain? How will those people find another minimum wage job?????????

 

The little guys are important, but so is the real world implication of the legal obligation owed to the shareholders that have invested their money and their retirement fund in the company to maximize the return on that investment.

 

You're right, they have a responsibility to protect their employees. And eating the additional costs associated with Obamacare would cause many of them to go out of business. Then all of their employees suffer a lot more.

 

Papa John's pizza has always been nasty.

Now its going to taste like sour grapes.

 

What's the big deal? It's a high turnover minimum wage job, not a career. Most employees don't even stick around for a year. Many employees are going to high school or college and only work part-time on weekends and evenings.

A minimum wage pizza job is a pit stop on the career ladder for most people.

 

This isn't going to work out the way these ###holes think, nor will this turn the public into little Ayn Rands. What it will do is turn working class Americans away from capitalism back to socialism which is where they ought to be in the first place.

 

burn, baby burn.

 

i'm sure they'll all move to europe and just refuse to operate in the largest economy in the world


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The companies didn't say they was going to move to Europe. They are just cutting costs, because of expected increase in doing business.

 

yes and i'm sure they will stop operating in hrs/markets/etc where they can still make profits because they don't want to pay those costs. they will leave all the dollars on the table.

 

okay i actually read the article, he's reducing worker hrs so they won't have to pay their insurance costs. i don't think that's as easy an operating decision as he makes it out to be. he has to hire more workers, more hr costs, and more likely you have unhappy rogue workers etc.