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 read a summary yesterday -- I'm not sure it was accurate, or my memory was accurate:
A business with more than 50 full-time employees must provide health insurance that covers at least 60% of medical costs. Part-time employees are included "pro-rata", so two half-time employees are the equivalent of one full-time employee.
I'm not sure if part-time employees have to be covered. If they do, then this would increase the cost per part-time employee, and it would be cheaper to only hire full-time employees (good-bye to after-school jobs).
The House bill raised this fine to $2000/employee. I'm not sure if it was enacted in this form, or how it would be enacted.
I’m in a pretty conservative area but I’m sure there are some who enthusiastically voted for him. Their troubles will just be blamed on corporate greed.
The House Reconciliation Bill has 2 chances: slim and none.
We love the new plan, we met the out of pocket of $2,500 in January and pay just $65 a pay check for the medical plan. Her employer pays the other 60% of the cost. We are going to save thousands of dollars this year with this plan because he goes to several Dr. appointments a month at what used to be $20 co-pays per visit. And they never end.
Now these idiots are going to eliminate this plan and we will be forced to pay hundreds of dollars a month more for insurance and much more out of pocket over the year.
“My guess is that companies are going to cut staff, hold or cut pay, or some combination thereof. It will not be pretty. And thats assuming the company decides in the first place to continue operations in the United States at its current model, outsource, or completely discontinue operations here entirely”
This morning I had to tell my medical office staff that we needed to cut 1 and 1/2 employees by the first of April. I asked for volunteers regarding cutting back hours or retirement in case someone had been thinking about that very thing. Got no takers as of yet. Seven person office with 5 of the 7 being with me over 10 years.
I am afraid that i will be saying goodbye to some very good friends. I feel worse than when they passed this crap.
“thats assuming the company decides in the first place to continue operations in the United States”
In the case of McDonald’s this presumably won’t be an issue. To my knowledge, hamburger delivery cannot yet be outsourced to India...
NO! Health Care Act is a job killer? Who knew?
Thanks Barry!
I’m guessing down the line...you the employer will be mandated to supply what Obama and his henchmen want, or else.
... who they still will have to insure (the part-timers I mean).
Do they understand why you’re having to do that? I think that there are usually a few who think that the business owner is just making it rich off of their labor.
If electric rates are doubled, I’m getting one of those old miner’s hats with a lantern on the front.
That means they will have to do with less employee’s but maintain service and service times = overworked workers.
Easy solution...find out which of the 7 voted for Obama or Democrats and lay them off first. Of course, if they are all conservatives, then you are stuck with an unfortunate dilemma.
I guess the silver lining in all this is that the oft-quoted 'worker productivity' index will continue to rise (snort). Of course THAT number is more phony than the current unemployment numbers.
I own a business, it appears that “independent contractor” will be the way to go. 1099 them and let them deal with the headaches.
It will also create an advantage for outsourcing more service/software/engineering jobs overseas.
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