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

This is just the start... Keep biting the hand that feeds you...

Welch Allyn

Welch Allyn, a company that manufactures medical diagnostic equipment in central New York, announced in September that they would be laying off 275 employees, or roughly 10% of their workforce over the next three years. One of the major reasons discussed for the layoffs was a proactive response to the Medical Device Tax mandated by the new healthcare law.

Dana Holding Corp.

As recently as a week ago, a global auto parts manufacturing company in Ohio known as Dana Holding Corp., warned their employees of potential layoffs, citing "$24 million over the next six years in additional U.S. health care expenses". After laying off several white collar staffers, company insiders have hinted at more to come. The company will have to cover the additional $24 million cost somehow, which will likely equate to numerous cuts in their current workforce of 25,500 worldwide.

Stryker

One of the biggest medical device manufacturers in the world, Stryker will close their facility in Orchard Park, New York, eliminating 96 jobs in December. Worse, they plan on countering the medical device tax in Obamacare by slashing 5% of their global workforce - an estimated 1,170 positions.

Boston Scientific

In October of 2009, Boston Scientific CEO Ray Elliott, warned that proposed taxes in the health care reform bill could "lead to significant job losses" for his company. Nearly two years later, Elliott announced that the company would be cutting anywhere between 1,200 and 1,400 jobs, while simultaneously shifting investments and workers overseas - to China.

Medtronic

In March of 2010, medical device maker Medtronic warned that Obamacare taxes could result in a reduction of precisely 1,000 jobs. That plan became reality when the company cut 500 positions over the summer, with another 500 set for the end of 2013.

Others

A short list of other companies facing future layoffs at the hands of Obamacare:

Smith & Nephew - 770 layoffs
Abbott Labs - 700 layoffs
Covidien - 595 layoffs
Kinetic Concepts - 427 layoffs
St. Jude Medical - 300 layoffs
Hill Rom - 200 layoffs
Beyond the complete elimination of a significant number of American jobs is another looming problem created by the health care law - a shift from full-time to part-time workers.

Sean Hackbarth of Free Enterprise explains:

A JP Morgan economist "points out that 8.3 million people are working in part-time jobs even though they'd prefer full-time work. Unfortunately, because of President Obama’s health care law, the Patient Protection and Affordable Care Act (PPACA), workers in the hotel, restaurant, and retail industries could be pushed into part-time jobs working less than 30 hours per week."

"Under the health care law, if a company has more than 50 “full time equivalent” workers, a combination of full and part-time employees, but doesn’t offer “affordable” coverage that meets the government’s minimum value standard, the company will have to pay a penalty. This penalty is determined by the number of full-time employees minus 30 full-time employees. So to reiterate a very important point: part-time workers are not part of the penalty formula. The health care law creates a perverse incentive to hire part-time versus full-time workers."

Tangible examples of Obamacare causing a reduction in full-time workers:

Darden Restaurants

According to the Orlando Sentinel, Darden Restaurants, a casual dining chain best known for their Red Lobster, Olive Garden and LongHorn Steakhouse restaurants, is "experimenting with limiting the hours of some of its workers to avoid health care requirements under the Affordable Care Act when they take effect in 2014".

JANCOA Janitorial Services

The CEO of JANCOA, Mary Miller, testified to Congress that Obamacare was a "dream killer", adding that one option she had to consider "is reducing the majority of my team members to part-time employment in order to reduce the amount that I will be penalized."

Kroger

The American retailer in Cincinnati, Ohio recently was reported to be planning a significant slashing of their hourly workers. Doug Ross writes:

Operative Faith (a mid-level manager with the company) reveals that Kroger will soon join the ranks of Darden Restaurants and slash the hours of its non-exempt (hourly) workers to avoid millions in Obamacare penalties.

According to the source, Obamacare could result in tens of thousands of Kroger employees being limited to working 28 hours per week.

 

keep killing that golden goose

 

Force you to believe? Make you bend to their will?

Their costs are going up due to Obamacare and they're passing those costs along to the consumer. That's to be expected.

 

"Schnatter made headlines over the summer when he told shareholders that the cost of a Papa John’s pizza will increase by between 11 and 14 cents due to Obamacare."

http://www.huffingtonpost.com/2012/11/09/papa-johns-obamacare-john-schnatter_n_2104202.html

11 to 14 cents?!!!!!

 

We should boycott these places for not being more charitable to it's employees. Makes sense.

 

Schnatter's a great CEO and Papa John's has the very best service and quality model of any national pizza chain. He's earned the right and credibility to make whatever decisions he wants with respect to his own firm, but obviously the stakeholders and interests are divergent enough for his opinion and actions to not be relevant commentaries on government policy. Lots of equivocating there, but I just can't get over how much better a brand and firm they are than other big chains.

 

Why not just have nationalized healthcare system that way employer's don't have to worry about paying insurance costs. We can lower costs by the walmartization effect. A few high end doctors and drug companies get screwed, but for a majority of people it is a win.

 

doesn't papa john's use almost all previously frozen ingredients (unlike pizza hut)?

 

This would be good. I'd rather have a true universal healthcare for Americans than military bases all over the world. OF course, then you have greater unemployment!

America should take care of Defense and Healthcare and Highways... and probably a few more things when I sit down to think about it.

 

Maybe, but they use them to make actual pies, not a Pizzalellogram or Chocolate Pizzmoothie.

 

You're lost.

This is not about the election. This is about a policy from Obama. His policy increased the costs of doing business for Papa Johns. Under your world view, Papa Johns should just say, "well golly, my costs just went up, so I'll accept lower profits and just keep selling my pizzas at the same cost and paying my employees the same.....I'll just eat the extra costs myself." Business doesn't work that way -- their profits will decrease and the company will be less competitive due to their competition being able to grow, innovate, etc better than them because they're deploying their funds more efficiently.

Your simple minded opinion is somewhat curious to me, though, and may explain why many from the left actually like Obamacare -- they thought that companies would just eat the costs and the liberals would get something for free.

 

Ohh no, self made millionaire is making a decision people don't agree with!

 

Pizza from delivery chains is revolting.

 

I don't see the problem here. Companies that can't afford insurance will be hurt; and the better run companies that can afford insurance will get all sorts of new business and the opportunity to grow and expand. And the whole country will be insured, increasing the health and productivity of the population, and reducing what the rest of us pay to subsidize the deadbeats.

 

This is why even though I'm liberal I'm also enough of a statist/establishmentarian that I would support Republicans over Greens or Libertarians any day of the week. Sorry, but big countries need big companies, armies and bureaucracies. The extra cost and debt comes less from a lack of leadership than from the fragmenting and accommodations that arise in a democracy.

 

Nope! Didn't learn anything from the election.