And In the “ObamaCare” Fallout Department . . .

| November 9, 2012

. . . well, it looks like it’s already started.  Here they are – job cuts announced or planned to date by businesses specifically due to AHCA mandates.  Numbers are full-time positions to be cut:

  • Welch Allyn – 275 (approx 10% of their workforce)
  • Dana Holding Corp – estimated to be approx $24 million over 6 years, or $4M per year (no firm number given besides the 6 or so in management who’ve gotten the ax so far)
  • Stryker  – 5% of global workforce (aprox 1,170)
  • Boston Scientific – between 1,200 and 1,400 US jobs (investment focus and hiring will shift to China)
  • Medtronic – 1,000
  • Smith & Nephew – 770
  • Abbott Labs – 700
  • Covidien – 595
  • Kinetic Concepts – 427
  • St. Jude Medical – 300
  • Hill Rom – 200

That’s over 6,700 full-time jobs getting the axe so far – plus however many jobs $24 million in payroll equates to at Dana Holding.  Assuming an average salary of $90k and allowing +1/3 for benefits, that comes to another 200.

Above and beyond those reductions, many other companies are actively looking for ways to reduce current or future workers’ hours.  Seems as if the AHCA penalty calculation formula doesn’t count part-time workers – so replacing a full-time worker with two part-timers is now really a net plus for the company.  Companies that are looking at doing exactly this (e.g., reducing many workers to 28 hours weekly or less) include the following:

  • Darden Restaurants (Red Lobster/Olive Garden/Longhorn)
  • JANCOA Janitorial Services
  • Kroger

The reductions identified above are, of course, only the beginning.  So if you’re hoping to find a full-time job some time in the foreseeable future – well, your search likely just got a whole lot harder.

Each of these reductions will also have a ripple effect due to forced reductions in spending by those who lose jobs or who saw their hours reduced.  The overall net effect will be to reduce business activity overall – leading to more cutbacks and layoffs in other industries affected by that reduced spending.

And this doesn’t include pending cuts due to sequestration, targeted Federal budget cuts, and the like.

Yeah, looks  it looks like we’re in for really good times.  Laissez les bon temps rouler!

(For the perception-challenged, yes – the last two sentences were indeed sarcasm.)

Category: Dumbass Bullshit, Economy

Comments (54)

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  1. Twist says:

    Wait a year or two and then come back here and tell us who the deluded ones really are.

  2. Twist says:

    “Did you stop to think why they didn’t do this BEFORE the election?”

    Did you? Did you maybe think that they where hoping for the repeal of AHCA if Romney would have won? Now they know that it isn’t getting repealed now that Obama won. That is why they are doing it NOW.

  3. OWB says:

    “You still believe your CEO’s are looking out for your best interests?”

    No, and furthermore, I have always presumed that CEO’s, just like every other human on Earth, are best positioned to look out for their own best interests. Frankly, I don’t want to know enough about them, or you, for that matter, to have any inkling what is in their or your best interests. It’s none of my business.

    But when you demand that I pay for their and your healthcare, you are making it my business. Don’t expect me to be happy about being forced to be involved in things which are none of my business.

  4. Nik says:

    “The Act went into law in 2010!”

    So? I’m not sure if you’re aware, but there was a Presidential election scheduled before the bulk of the Healthcare act was due to go into place. Some people were pinning their hopes on someone getting into office that would de-fang the Act. That didn’t happen, so organizations are taking steps to protect themselves. Your statement has no point.

    But being as you’re the kind of person who shows up at an argument with insults and namecalling, rather than reason and facts, I don’t much care what you think.