Cumberland Times-News


October 17, 2012

Many losing jobs or hours because of health care act

More people may be staying home for dinner in 2014. Not just customers either. Fast food might not be so fast. Many may lose their jobs or have reduced hours.

The owner of Olive Garden and Red Lobster restaurants is putting more workers on part-time status in a test aimed at limiting the impact of looming health coverage requirements.

Darden Restaurants Inc. is very concerned about the Patient Protection and Affordable Care Act of 2010 (PPACA). Darden operates more than 2,000 restaurants in the U.S. and Canada, including its Longhorn Steakhouse. It employs about 180,000 people.

However the company is likely to increase the number of part timers and reduce fulltime staffs. Darden has been forced to offer lower pay rates to new hires.

Bonuses for general managers have been reduced as sales have stagnated. Servers at Red Lobster are handling four tables at a time, instead of three. As well, new franchise locations are being reduced.

This summer, McDonald’s Corp. Chief Financial Officer Peter Bensen noted in a conference call with investors that the fast food company was looking at the many factors that will impact health care costs, including the number of full-time employees.

Papa Johns. is not by far, the only company that will be adversely effected by Obamacare. They will react in less fulltime jobs and lower wages to survive. Product prices will rise also.

Gas prices have doubled in the last 42 months. So maybe you’ll be picking up your pizza at the restaurant. Or going without it to pay your tax penalty because you cannot afford to pay $8,000 to $10,000 for your health insurance!

The U.S. federal debt is at a record high. Recently, it passed a milestone: the fourth straight year the deficit has passed the $1 trillion mark. Recently, the national debt stands at $16,066,241,407,385.80 (just over $16 trillion).

So do you think that we might give the new guy a whirl?

 Arthur Squires Jr.



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