In a memo to employees, management was blunt: “To comply with the Affordable Care Act, Regal had to increase our health care budget to cover those newly deemed eligible based on the law’s definition of a full-time employee.”
Fox News reports that, as a result of cutting employees’ work hours (which is, of course, the same as a pay cut), full-time Regal managers have resigned in “a wave” after their hours and pay checks were slashed by as much as twenty-five percent.
The manager told FoxNews.com ObamaCare has had the unintended consequence of taking food off his table.
“Mandating businesses to offer health care under threat of debilitating fines does not fix a problem, it creates one,” he said. “It fosters a new business culture where 30 hours is now considered the maximum in order to avoid paying the high costs associated with this law.
“In a time where 40 hours is just getting us by, putting these kind of financial pressures on employers is a big step in a direction far beyond the reach of feasibility for not only the businesses, but for the employees who rely on their success,” he said.
In order to avoid the added cost of providing health insurance for employees working 30 hours a week (as ObamaCare mandates), it only makes sense for companies to schedule employees for 29 hours. So anyone who was working full-time is now being hit with a 25% pay cut.
Moreover, in a jobless “recovery” like the one we’ve been suffering under for four long years now, employers hold all the cards. And even if someone is able to find another job, what are the chances that employer won’t be making the same decision to avoid the expense of ObamaCare?
The most under-covered story in the media this year is and will continue to be the effect ObamaCare is having on America’s working class — those who are losing their health insurance and the crucial work hours that can make all the difference when you live on the margins.
Join the official YWN WhatsApp status
10 Responses
Regal made $144 million in profit last year — that’s about $6,500 per full time employee — and it stock price has increased by 21% since the beginning of the year. It does not have to cut employee hours. This is just politics and greed.
Politics and Greed?
Why would anyone want more employees – if it will only end up costing them more money. From a business standpoint this is very legit.
If the cost of doing business is the ikur, trumping concerns of employee welfare…let’s go back to slavery
Charlie,may i send u my address so that u can send me all of YOUR EXTRA money being that u r so generous with other peoples money being
To Charlie
That’s capitalism baby. Businesses are out there to make a profit. Don’t knock it because it works. But enter government tinkering and business will react. Capitalism, based on mans innate desire to profit, has made the USA the richest most powerful country in the world. Don’t blame the business Charlie. Blame the government whose policies are choking businesses.
“Capitalism, based on mans innate desire to profit, has made the USA the richest most powerful country in the world. ”
The US is not the richest country in the world if you measure it by per capita income, which is the correct metric. Norway, for example, is much richer — and it is one of the most heavily taxed nations on earth.
And the US did NOT develop as a laissez-faire country. Governments had to massively subsidize infrastructure development because the private sector was not up to it. The Erie Canal was funded by New York State. The Baltimore and Ohio Railroad was funded by the State of Maryland. The National Road was a federal project. And the first four transcontinental railroads were massively subsidized by the federal government. Before then, the federal government mandated health insurance coverage for merchant seamen. Later on, the New York City subway would be funded by New York City. I could go on and on.
And if polices are choking businesses, why is the stock market around an all time high? After all, markets are always right in determining the value of goods and sevices, right?
Charlie. If the profit is $6,500 per full time employee, how much does requiring insurance under Obamacare cost per employee. Assuming half of their employees are covered by health insurance already, you
Charlie. If the profit is $6,500 per full time employee, how much does requiring insurance under Obamacare cost per employee. Assuming half of their employees are covered by health insurance already, you have probably cut their profits in half. Probably more. How much of their profits should they spend providing health care to their employees? What you would do if it were your company? You may think you know the answer, but somehow I doubt it.
The us economy did develop as a capitalist country. Only as a result of the great wealth that this generated was the government able to collect tax revenue and build infrastructure. How the government governs, how it taxes, the regulations it creates – all have an effect. – either positive or negative – on the economy. As far as the stock market or any other market goes. The price indicates what people think the commodity is worth right now. Tomorrows perceptions might change, even drastically.
Government has its place. Building Infrastructure is much different than mandating Healthcare.
Socialism may work for Norway, it is a small country with a decent work ethic. I don’t believe they have a large portion of society that are permanently on welfare in some manner.
The stock market is also subsidized. All the large players are “too big to fail”