Sunday, June 2, 2013

Obamacare means partime work!

Obamacare means millions of American workers are having their work weeks cut to under thirty hours a week. The rippling effects will be both broad and profound. It will not only lessen the incomes of many workers and force them to find a second job, but it will put many on some kind of program that gives them aid from the government to cover part of their healthcare coverage. The effect on our culture will be people work less, like the much talked about 35 hour French work week, Americans will drift farther into the "not working" status. This is why we are seeing more jobs created, Obamacare is distorting the unemployment picture that has always been based on the idea of a forty hour work week.

For example in Fort Wayne, Ind. where I live, the school system just announced that they are cutting hours for hundreds of part-time employees such as teacher assistants and cafeteria workers.  Leaders at the district say the Affordable Care Act is partly to blame. They work six-hour days for a 30-hour work week, starting on June 3, the last week of the school year, most of the employees affected will drop down to a 25-hour work week. “It’s not what we would have liked to have done,” said Kathy Friend, chief financial officer with FWCS.  “Reducing hours is not good for the employees, but it is also not good for the schools who depend on their support.  But we had to do it.”

Principals recently notified affected employees of the changes. In all, Friend said there are about 840 FWCS employees working 30 hours a week.  Beginning in January of 2014, President Obama's Affordable Care Act requires employers to provide a health care option to anyone working 30 hours a week or more.  Adding that new eligibility to its part-time employees, which currently are not eligible for health care, would cost FWCS about $10 million it does not have, FWCS, the largest school corporation in Indiana, is already working through a budget shortfall.

The examples are not limited to just my city, recently Papa John’s CEO John Schattner announced that the company would be cutting employee hours to offset future expenditures mandated by the Affordable Health Care Act. The average pizza will also retail for approximately 11 to 14 cents more. Schattner was a Romney supporter who supports universal health care, but disapproves of the president’s bill to deliver it, He said, "The good news is 100 percent of the population is going to have health insurance. We're all going to pay for it." Schattner explained, he labeled his decision as pragmatic, rather than political.

Other fast food restaurants such as an Omaha-based Wendy's franchisee will also be cutting all non-management workers' hours to part time in order to avoid paying health insurance. The company announced that all non-management positions will have their hours reduced to 28 a week. Gary Burdette, Vice President of Operations for the local franchise, says the cuts are coming because the new Affordable Health Care Act requires employers to offer health insurance to employees working 32-38 hours a week. Under the current law they are not considered full time and that as a small business owner, he can't afford to stay in operation and pay for everyone's health insurance.

There are 11 Wendy's restaurants in the metro. "It has a huge effect on me and pretty much everybody that I work with," says one worker who understands the reasoning and says other part-timers at other fast-food restaurants are facing the same problem. "I'm hoping that I can get some sort of promotion because then I would get my hours, but everybody is shooting for that because of the hours being cut." Burdette says the decision that affects around 100 employees was a tough one and he understands why people are upset. Management employees will continue to have benefits as they are officially full time. I can only think that this might have something to do with the monthly increase in job numbers, it now takes four part-time workers to do the work three full time employees did in the past.

Footnote; For more on the recent unemployment numbers please view the post below,

1 comment:

  1. In regards to the Obama care, this is a program that will not work. Just a few days back UPS, a major company, has canceled over 15,000 health insurance policies. These policies canceled are for non-union employees spouses and family members. UPS has done this to ease the pain and monies they would have to pay do to Obama care. In his presidential speeches Obama said multiple times that NO employee would lose their insurance. Just another lie by the president that the Unions voted for. Also, the clothing retailer Forever 21 has decided they will cut employee hours to 29.5, just under the 30 hours mandated by Obama Care. These are just two companies that are finding ways around what I believe is a horrible health care system implemented by Obama. This bill is going to kill small and large businesses alike. How long until other companies like Fed EX, Target or Wal-mart decide to do what UPS and Forever 21 have done. I say NObama Care...