Ad Majorem Dei Gloriam

Essential thinking for reading Catholics.

Thursday, November 08, 2012

Gee, why didn't we hear all this, say, Nov. 5?

The temptation, for those who are far more skilled than I am at holding on to the memory of injury and insult, would be to say "Let Rome in Tiber melt."

Anyway, here's a neat summary -- by no means exhaustive -- of what you will find when you gaze into the crystal ball, America:

Global Slowdown Threatens More Layoffs

PC chipmaker Advanced Micro Devices said it will cut its work force of nearly 12,000 by 15 percent. (That's 1,800 for you journalism majors.)
Boeing announced a major restructuring of its defense division on Wednesday [11/7/12] that will cut 30 percent of management jobs from 2010 levels.

USA Today reports: Layoffs rise as firms retrench due to earnings.

NBC News - Dow Chemical layoffs announced

Dow Chemical Co., the largest chemical maker in the United States, said on Tuesday it plans to cut 5 percent of its workforce and shutter 20 plants as part of a restructuring program aimed at countering a slow global economy. Dow and other chemical companies face slipping demand for products around the world. Rival DuPont slashed its earnings forecast and announced 1,500 jobs cuts.

Welch Allyn, manufactures medical diagnostic equipment in New York state, announced it'd be laying off about 10% of their workforce over the next three years. One of the major reasons mentioned? A proactive response to the Medical Device Tax mandated by the new healthcare law.

Just before the election, Dana Holding Corp., a global auto parts manufacturing company in Ohio warned of potential layoffs, citing "$24 million over the next six years in additional U.S. health care expenses". After laying off several management staffers, insiders have mentioned there is more to come. They have to cover that additional $24 million cost somehow, and that means numerous cuts to their current workforce of 25,500 worldwide.

Stryker (One of the biggest medical device manufacturers in the world.) will close their facility in Orchard Park, New York in December. Even more exciting, they plan on coping with the medical device tax featured in Obamacare by slashing an estimated 1,170 positions of their global workforce.

As far back as October, 2009, Boston Scientific CEO Ray Elliott, warned that the taxes written into Obamacare would "lead to significant job losses" for his company. Two years later, Boston Scientific announced they would be cutting between 1,200 and 1,400 jobs, while simultaneously shifting investments and workers overseas - to China.

In March of 2010, medical device maker Medtronic warned that Obamacare taxes would bring about cuts of 1,000 jobs. This became a reality when the company cut 500 positions, with another 500 set for 2013.
Here is a partial list of other companies facing layoffs at the hands of Obamacare

Smith & Nephew - 770 jobs lost
Abbott Labs - 700 jobs lost
Covidien - 595 jobs lost
Kinetic Concepts - 427 jobs lost
St. Jude Medical - 300 jobs lost
Hill Rom - 200 jobs lost

But it gets better! You're also going to see a shift from companies switching from full-time to part-time workers.

According to Sean Hackbarth of Free Enterprise:
A JP Morgan economist "points out that 8.3 million people are working in part-time jobs even though they'd prefer full-time work. Unfortunately, because of President Obama’s health care law, the Patient Protection and Affordable Care Act (PPACA), workers in the hotel, restaurant, and retail industries could be pushed into part-time jobs working less than 30 hours per week."
"Under the health care law, if a company has more than 50 'full time equivalent' workers, a combination of full and part-time employees, but doesn’t offer 'affordable' coverage that meets the government’s minimum value standard, the company will have to pay a penalty. This penalty is determined by the number of full-time employees minus 30 full-time employees. So to reiterate a very important point: part-time workers are not part of the penalty formula. The health care law creates a perverse incentive to hire part-time versus full-time workers."
Ah, yes. The Law of Unintended Consequences.

Reported in the Orlando Sentinel, Darden Restaurants, (Red Lobster, Olive Garden and LongHorn Steakhouse, etc.) will be "experimenting with limiting the hours of some of its workers to avoid health care requirements under the Affordable Care Act when they take effect in 2014".

The CEO of JANCOA (specialists in Janitorial Services), Mary Miller, testified in Congress that Obamacare was a "dream killer", adding that one option she had to consider "is reducing the majority of my team members to part-time employment in order to reduce the amount that we will be penalized."

As per this Doug Ross piece:
"A mid-level manager with the company reveals that Kroger will soon join the ranks of Darden Restaurants and slash the hours of its non-exempt (hourly) workers to avoid millions in Obamacare penalties."
According to the source, Obamacare could result in tens of thousands of Kroger employees being limited to working 28 hours per week.

Sometimes the lessons can only be learned when they are learned the hard way and sometimes, the hard way needs to be especially hard for people to learn.


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