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.
