Updates
October 10, 2012: small group of unionized Wal-Mart workers stage publicity stunt/strike drawing attention to their wages. Wait until ObamaCare kicks in and Wal-Mart moves to 29-hour work weeks (see below). Not only will overall pay go down, but they won't qualify for ObamaCare. Oh, by the way, Wal-Mart's average full-time pay is $5.00 greater than the federal minimum wage:
[Wal-Mart's] full-time average wage is $12.54 an hour, which is $5 above the federal minimum wage.” He said that 300,000 Wal-Mart employees had worked at the company for more than 10 years and that Wal-Mart’s turnover rate was lower than the industry average.For the record, federal minimum wage is $7.25; the state with the highest rate: Oregon, at $8.80, which rises with inflation; it was increased by 30 cents in January, 2012 (I thought inflation was tamed).
October 9, 2012: link to Orlando Sentinel with same story below regarding Olive Garden, Red Lobster
Original Post
Harley Davidson embraces flexible production; google Hog maker Harley gets lean; I don't think the article references that under the ObamaCare legislation, a 30-hour work week is now considered full-time. If that stands (the 30-hour work week), companies will figure out ways to get around it; part-time workers will work even fewer hours. Unintended consequences.They've already started. From CarpeDiem:
Olive Garden and Red Lobster restaurants are putting more workers on part-time status in a test aimed at limiting the impact of looming health coverage requirements. The test entails increasing the number of workers on part-time status, meaning they work fewer than 30 hours a week. Under the new health care act, companies will be required to provide health care to full-time employees by 2014, which would significantly boost labor costs for businesses.Incredible. So the college student, or senior, or whoever, looking to work more than 30 hours to make ends meet, is now being told that a) no, you won't work 30 weeks; and, b) oh, by the way, since you are not working 30 hours, you will not qualify for ObamaCare. At least not "through" us.
By the way, with unemployment somewhere between 7.8% and 30% (for teenagers), there should be an adequate pool from which to draw wait-staff. They might have to "up" the hourly wage a bit, but that still beats what it would cost to provide ObamaCare. Adding salt to the wound, as they say, I bet some of these companies already provided some medical benefits. The company to follow: Wal-Mart.
One solution that will pop up: companies will pop up providing temporary workers to fill slots required by fast service restaurants. Think of "waiter-pools." These will be pools in which waiters will occupy, and then move from restaurant to restaurant, to get the more than 30 hours they need, even though they won't get the 30 hours they need to qualify for ObamaCare.
But I digress. The point is that service industries, and perhaps even manufacturing industries, will lean to adapt to the 29-hour work week.
Many big companies already do this. Wal-Mart has a long standing practice of limiting hours to prevent people from getting benefits. That's fine, it's what they need to do to make money since we know how hard they struggle to make a buck.
ReplyDeleteWant to see a real scumbag move? Google "Dead Peasants' Insurance" and see how Wal-Mart makes money by not insuring their workers yet take out life insurance policies and making themselves the beneficiaries.
I am aware of of the movie. I'm not sure what that has to do with the post. However, now that you've brought that up: there are costs associated with hiring and training new employees. One can argue that Wal-Mart, smartly, is insuring their investment in that expense. Granted, the insurance benefits probably far exceed the cost of a single employee, but aggregated, it helps cover the cost of turnover (albeit, turnover is very, very low at Wal-Mart, according to the same story; $5-above-minimum wage must be enticing).
DeleteBut I think you missed the point of the post. Good, bad, or indifferent with regard to how Wal-Mart does things now -- Wal-Mart will react to legislation.
And the unintended consequence of this legislation is to further lower the number of hours part-time employees will be able to get. And the average Wal-Mart employee probably will not realize this until it affects him/her.
One unintended consequence -- a positive outcome -- of the 29-hour work week mandated by ObamaCare: working conditions for the employed will improve remarkably.
DeleteFirst, the working conditions for Wal-Mart are already incredibly nice compared to what roughnecks put up with (and our soldiers in Iraq/Afghanisan). Wal-Mart workers generally work in air-conditioned stores sheltered from the elements surrounded by fresh fruit and vegetables (if Wal-Mart has the grocery store, which most now do, I assume). Security is 24/7.
Now, with the 29-hour ObamaCare-mandated work week, employees will have more time off to recuperate from work; more time to spend with their families; more time to read or enjoy their hobbies. If they are allowed to push their 29 hours into three days of work, they will have four days off every week giving them nice long weekends to visit family, go fishing, or explore the beautiful countryside.
Others can use the four days of non-Wal-Mart work to explore other job opportunities. Mr Einstein worked on his theories while employed as a government patent clerk.
dear Bruce,
ReplyDeleteThank you for your usefull (to me0 efforts.
The Canada and Europe solution is to have a 7.5% national sales or Value added Tax. as in Canada & Europe.(to cover medical insurance)
Than it covers everyone including tourist!
Best wishes,
v/r
Nick Anderson
Key West, Florida 33040