Employee Benefit Views

Re-election fallout: Reduced hours, reduced payrolls and increased prices

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Posted November 12, 2012 by By Kelley M. Butler at 11:21AM. Comments (6)

 

Although it’s tough to trace the saying’s origins back to a single politician, many lawmakers at one time or another have said, “Elections have consequences.” 
Whether they voted for President Obama’s re-election or not, employees nationwide are beginning to feel the consequences of the 2012 presidential contest. 
Less than one week after Obama won a second term in office, dozens of employers — going a giant step further than simply threatening workers’ jobs http://ebn.benefitnews.com/blog/ebviews/david-siegel-communication-problem-solution-2728260-1.html should the president get re-elected — already are setting about the business of offsetting the impending business costs of implementing health care reform or other Obama policies they view as unfriendly to their industry.
As EBN legal contributor Frank Palmieri noted just before election day, an Obama re-election would have employers “doing the numbers” http://ebn.benefitnews.com/news/legal-contributor-romney-cant-repeal-ppaca-day-one-2728770-1.html to see how PPACA’s various mandates would stack up against the ability to maintain profits. 
So far, Papa John’s CEO John Schnatter and Applebee’s franchise CEO Zane Tankel don’t like what they see. Schnatter said he will cut worker hours and raise the cost of the company’s pizzas by as much as 14 cents in response to PPACA. Tankel said he also is considering reducing worker hours as well as implementing a hiring and expansion freeze to combat PPACA-related costs.  
Murray Energy Corp. CEO Robert Murray Murray recently fired some 150 employees across three locations of the company’s coal mining operations in response to the president’s “war on coal.”
I refuse to set foot on the minefield that is the intersection of business and politics. But I would like to know all the same: Did your company/does your company plan to fire employees or make other workforce decisions based on the outcome of last week’s election? Share your thoughts in the comments. 
 

 

Although it’s tough to trace the saying’s origins back to a single politician, many lawmakers at one time or another have said, “Elections have consequences.” 

Whether they voted for President Obama’s re-election or not, employees nationwide are beginning to feel the consequences of the 2012 presidential contest. 

Less than one week after Obama won a second term in office, dozens of employers — going a giant step further than threatening workers’ jobs should the president get re-elected — already are setting about the business of offsetting the impending business costs of implementing health care reform or other Obama policies they view as unfriendly to their industry.

As EBN legal contributor Frank Palmieri noted just before election day, an Obama re-election would have employers “doing the numbers” to see how PPACA’s various mandates would stack up against the ability to maintain profits. 

So far, Papa John’s CEO John Schnatter and Applebee’s franchise CEO Zane Tankel don’t like what they see. Schnatter said he will cut worker hours and raise the cost of the company’s pizzas by as much as 14 cents in response to PPACA. Tankel said he also is considering reducing worker hours as well as implementing a hiring and expansion freeze to combat PPACA-related costs.  

Murray Energy Corp. CEO Robert Murray Murray recently fired some 150 employees across three locations of the company’s coal mining operations in response to the president’s “war on coal.”

I refuse to set foot on the minefield that is the intersection of business and politics. But I would like to know all the same: Did your company/does your company plan to fire employees or make other workforce decisions based on the outcome of last week’s election? Share your thoughts in the comments. 

 

 

6 Comments

Posted by: David K | November 15, 2012 12:15 PM

Pizzaman, the two programs cited are not bankrupt. That is simply a conservative lie that would make Joseph Goebbels proud. As to your comment that the government cannot run anything efficiently, I think that you should apologize to those in our uniformed services that run those government programs and fight for our freedoms.As to you nonsensical statements about reading the bill and killing jobs - it's all TEA Party BS which is so prominently displayed in this industry.

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Posted by: Kenneth S | November 15, 2012 7:33 AM

David K, I can't believe you cited 2 government entitlement programs that are bankrupt and bankrupting our country as examples of government successes. I'm kinda surprised you didn't cite the postal service. The government can't run anything efficiently. For each tax dollar that goes to the government for some welfare program, 29 cents is what the eventual recipient actually gets. As to the question posed, there isn't a business I know of that isn't having to look at all options to mitigate the additional costs imposed by this horrible piece of legislation that no one read before passing it. Yes some companies are cutting their labor force, many will not create any new full-time positions (all will be part-time) Some companies will simply stop growing and all willhave to raise their prices, so in the end it is another huge tax that will kill jobs and make people more dependent on government.

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Posted by: David K | November 15, 2012 5:36 AM

I can't answer your question about firing employees since I'm semi retired and work for myself, by myself with very high health care costs for the last few years without regard to the Affordable Care Act. However, there are many government programs that have been great successes upon which many of us rely, e.g., Medicare, Social Security. This is simply something that we should all work to make better and stop the nonsensical, disloyal, moronic, TEA Party talk.

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Posted by: Frances R | November 14, 2012 2:47 PM

Our firm pays 100% of employee health, vision, and dental premiums. Obamacare will change that formula. We are waiting to see specific rules since the bureaucrats haven't written up the new destructive directives. It may be the law, but it must be changed (along with numerous other Obama edicts and foolish laws) or our economy will tank. Fascism is only destructive, never constructive. Of course, if that is the current administration's goal, they are doing a fine job.

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Posted by: Janis K | November 14, 2012 2:26 PM

What does the war on coal (or how about a war on clean air and carbon pollution standards)have to do with healthcare reform? This is a politically loaded, one-sided attack piece that I found offensive. Sorry.

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Posted by: Bill K | November 14, 2012 1:39 PM

Changes will be made and it has nothing to do with the result of the election. Romney would not have been able to kill HCR immediatley so everyone has to change accordingly.As with most Big Government Fairy Tales the result is a program with good intentions that will be an absolute failure. Our insurance which I might add was flat in increases due to being an HSA has gone up the last 2 years. This years about 18% due to specific requirements of Obamacare.This will hurt everyone. Added expenses mean lower raises and less opportunity. I suspect in about 2020 everyone will look back at the Obama administration as an abismal failure. Mainly to the drag HCR placed on the economy....

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