Posted on 03/23/2010 2:05:12 PM PDT by ReagansShinyHair
My family went to McDonald's for lunch today, to consume our usual $1 McDoubles and shared fries and drinks.
The bottom line is that it sounds like businesses have anticipated this vote and are initiating the process of cutting jobs to keep costs down.
The managers were having a meeting and we ended up sitting down right next to them. I don't know their McJobTitles, but basically most of them were store managers and one of them was a traveling manager for the area.
My ears pricked up as I heard heated tones! The store managers were protesting that too many people would lose their jobs. The traveling manager said that this is just a "business decision" that is being made because the "targets" must be met no matter what for the stores to stay open. I'm assuming that the "targets" are some sort of net profit goal for each store.
Key points: -Staffing costs are going to increase a lot on a per-employee basis, so that means fewer employees.
-The company is not going to accept a lower profit target.
-Even though the extra costs might not happen until the future, the cuts are going into place ASAP because the profit targets must always be met.
-Other businesses have not been able to avoid bankruptcy, including fast food restaurants in the area, and McDonald's in my area is going to do what it takes to stay in business.
-Nobody is happy about firing workers, but it's going to happen anyway in order for the company to stay in business.
I wonder what the law says about employers having to provide health insurance for employees. My employer provides single or family policies, and pays 80% of the cost. Is that still legal? Can they force me to pay 20%? 30%? 40%? 50%? 100%? What does it mean to “provide health care?”
My friend went to a local gym this morning to work out (very small) and it was completely empty/closed.
/s
It doesn’t help that every fast food restaurant in the country now has to redesign and change all their signage and menus to include calorie count to please Nazi Pelosi.
Sure, contingency planning is always on-going.
I now work on a W-4, but during the last 3 years I closed down a corporation in CA, one in NV last year, and began shrinking expenses and saving all I can.
Lessons to be learned from this bit:
http://tinyurl.com/yganca3
And a little history here:
http://ferfal.blogspot.com/
You keep eating like that and we’ll be paying for your family-sized triple bypasses.
It’s inevitable. Jobs will be lost and prices will go up.
Burger King has a double cheeseburger for a buck that is bigger than a McDouble, and flame broiled vs Mickey D’s fried in its own fat.
As with your employer, McDonald’s, and all employers, the personnel costs are a fixed percentage of the overall business plan. Health care is a personnel cost, just like salaries, unemployment compensation, social security, and any other “benefit” an employee gets.
Health care has just moved from a “benefit” which is bestowed by discretion of the employer, to a “mandatory cost” like social security and unemployment or workmen’s comp. It will all go into the package of determining the personnel “bottom line,” which will drive how many employees the company has, and what their rate of compensation will be.
My guess is that companies are going to cut staff, hold or cut pay, or some combination thereof. It will not be pretty. And that’s assuming the company decides in the first place to continue operations in the United States at it’s current model, outsource, or completely discontinue operations here entirely.
With Dr. Boonie, the boondoggle healthcare monster coming down the pike, I’d expect more people to be working out, keeping fit to avoid having to visit Dr. B and Nurse Ratchet.
The other option they have, and one I expect will be chosen more often as times passes, is to drop coverage and pay $750 in fines per year for each employee.
Rush was talking about gathering stories like this today.
There will be More, Many More
Oh my Lord, my arteries clogged just reading that!
Although I am not a Big McD’s fan, I do like an occasional salad at Wendy’s.
All of these Fast-Food places provide jobs for what we would call “Unskilled” Workers. Teens, Older People, Even People with Special Needs.
Now, these people are going to be out of the only kinds of jobs they can do, because of gub’mint interference.
Jury is still out because Madam Sillybus will make the final determination but as an employer, it is my understanding that the plan I offer my employees will be evaluated to determine appropriate level of coverage. Plan we now have which is tailored to the needs of my employees has no coverage for HIV, a limited amount for chemotherapy, no maternity, no mental health benefits and no wellness coverage. Very large deductible because it basically is to cover hospital costs. Employees pay flat monthly amount into an HSA and I pay 50% of premium. Have already been advised in phone call with my agent that this plan will probably be disallowed as it doesn’t cover enough. If that happens, I won’t have insurance for anyone but my family members. Sad but a fact of life. At least they will have a paycheck.
I have a strong suspicion those are only “starter” fines. They are not high enough to herd everyone onto the collective farm of “single payer.”
Yes, but do we know what percent the employer must pay?
“do we know what percent the employer must pay?”
Well, now that we passed the bill, I guess we are entitled to find out.
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