The upshot of ObamaCare: fewer full-time employees

Discussion in 'Health Care' started by pjohns, Nov 10, 2012.

  1. pjohns

    pjohns Well-Known Member

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    Ah, yes: The Law of Unintended Consequences.

    Presumably, most of those who support ObamaCare are not malevolent in their intentions. Yet one of the (rather predictable) consequences of this government-mandated healthcare insurance is a massive shift, among employers, from full-time workers to part-time workers.

    As The Wall Street Journal aptly notes:

    And the link: http://online.wsj.com/article/SB10001424052970204707104578094941709047834.html
     
  2. DDave

    DDave Well-Known Member

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    It's a Democrat thought, or rather, lack of thought, pattern. They think they can just pass this stuff and businesses will just take it in the shorts and not do anything in reaction to it. Just like businesses leaving California in response to increases in tax rates and regulation.

    http://bluecollarphilosophy.com/201...ing-california-thanks-to-the-democrats-video/

    I don't think they are purposely trying to destroy the nation or California and I don't want to call them stupid. But at some point you would think they would make a connection and admit the cause and effect relationship between their actions and business reaction.

    And pouting and (*)(*)(*)(*)(*)ing about the greedy business owners isn't going to help either.
     
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  3. hudson1955

    hudson1955 Well-Known Member Past Donor

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    Agree. And I posted such in another thread. It is a shame but I have already seen more employers cut employee hours to 30hrs or so to stay under the full-time designation. That means they don't have to offer benefits. My small business won't do that because we have only 5 employees that we rely heavily on and we give them full benefits because want to keep them long-term. So, we will likely continue to pay 100% of their health insurance premiums as we have for over 35 years and take the full deduction for the amount we pay as a business expense, hence the Obamacare credit doesn't offer us anything more than we have already been eligible for deducting. In fact, none of the so-called tax credits and deductions for small businesses he and the democrats keep touting have helped us.

    But, I can definately see how corporations such as fast food chains, retail stores, and the like can benefit by reducing their full-time staff and hiring more part-time workers. This is just one of the major downfalls of Obamacare, the second is the belief that insurance premiums through the "exchanges" will be more affordable. I could go on and on as to why Obamacare will fail and was designed to fail so that the Federal Government could push for Universal/Single Payer coverage.
    Again, Obamacare winners are the Federal Government, the Health Insurance Companies and the losers are tax payers, the middle-class and small businesses and their employees.
     
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  4. tkolter

    tkolter Well-Known Member

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    Many businesses were moving to shorter hours Walmart for example "full time" for hourly workers is 28 hours by company considerations now, Target tries to stay below that save for currently the holiday season where now they might hire more people over adding hours. But I think Americans work to much and think this is a good thing and will create more jobs since now you will need a proportional number of more employees for the work to be done.

    As for the ACA if businesses in the US are so awesome and innovative and adaptable then they will be able to stay in business and do su with the ACA in effect without acting like a bunch of babies, and employees will in turn need to learn to live on less money and maybe mature from the "consumerist culture" to something more sustainable. Or work more than one job.
     
  5. gamewell45

    gamewell45 Well-Known Member Past Donor

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    Never let that stop a determined man; go and get two part time jobs. or enough part time jobs to equal 40 hours per week.
     
  6. stroll

    stroll New Member

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    These health reforms have been introduced quite recently, against massive resistance, and has been compromised from proposals extensively.
    Obviously, more work is to be done to cover the present loopholes.
     
  7. FFbat

    FFbat New Member

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    Companies have been doing this long before obamacare. It puts the ball in the company's hands with employees. Instead of having ONE employee doing a job, you have Multiple part time employees performing the same job. Now if one of these employees wants a raise, or leaves the company... the Company doesn't have their back against the wall. This is especially true in Retail.
     
  8. FreshAir

    FreshAir Well-Known Member Past Donor

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    Obama's public option would of been much better then the republican individual mandate, sadly we got CongressCare instead of ObamaCare, but all is not lost, we can still make CongressCare better if BOTH republicans and democrats want too, the question is... do they want to?


    .


    [​IMG]
     
  9. FreshAir

    FreshAir Well-Known Member Past Donor

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    yep, what this article forgot to mention is all these corporation they are referring too, had no health care plan to begin with, they could care less about their employees
     
  10. Beast Mode

    Beast Mode New Member

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    If you really think that this was an unintended consequence then you're pretty naive.

    Those industries mentioned in the article already employ a large amount of part-time employees, so it's not all that relevant. Employer provided healthcare will still be a massive subsidy for higher income people who can afford it. That will give larger companies a competitive advantage in hiring. The medium to smaller companies will try and dump as much of their employees onto the public exchange as they can, thus freeing them from the burden of competing with large companies in having to provide that expensive benefit to it's employees.

    Whatever the estimates are of how many people are going to be covered under the public exchange...double it. And there may even be a little gamesmanship on giving out conservative estimates, to not make the public panic at such massive changes. Business's will adapt like they always do.

    Plus, with that many people under public coverage it's just one step closer to a single payer system...which would completely level the playing field for employers. Which makes me wonder who Obamacare benefit's the most. Wages at large companies might shrink to accommodate for benefit costs that smaller companies are not paying. At least until there is a single payer system. Interesting dynamic.

    The funny thing is, with all this shifting and adjusting it might be the only ones who may end up suffering from the Affordable Care Act will be the ones it was supposed to help the most...the people. It's too early to tell how it will all work out. And anyone who says they know is a moron...present company included. :blankstare:


    I'm gonna read the article now even though it just looks like another 'Obamacare shuts down another business' type meme.
     
  11. Beast Mode

    Beast Mode New Member

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    Ya, I sort of think the companies dumping benefits will be able to use some of that capital for extra part time help. Hours might go down and wages might go down...but hey, unemployment will go down too. :blankstare:
     
  12. pjohns

    pjohns Well-Known Member

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    This is precisely my own take on the matter.

    Sometime (probably during the latter portion of President Obama's second term), the president will declare that he tried--he really did!--but that healthcare reform is, well, just not working as intended. So the government will need to take it over in its entirety...
     
  13. pjohns

    pjohns Well-Known Member

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    So, you believe that it would be preferable for most Americans to have two part-time jobs (or more), instead of one full-time job?
     
  14. pjohns

    pjohns Well-Known Member

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    Some have, indeed. (Seaes is one that leaps to mind.)

    But this will (quite undeniably) accelerate that trend...
     
  15. pjohns

    pjohns Well-Known Member

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    Some have, indeed. (Sears is one that leaps to mind.)

    But this will (quite undeniably) accelerate that trend...
     
  16. DDave

    DDave Well-Known Member

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    That's a cute little cartoon you posted there.

    Where's the panel with Pelosi saying we have to pass this thing to see what's in it?

    And I'm sure the Republicans would have liked to have some input in the current version instead of being shut out like they were by Obama and the Dems.

    So much for the televised negotiations Obama promised.
     
  17. tkolter

    tkolter Well-Known Member

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    This is not new but there is something to note SKILLED workers say a highly trained factory worker able to program the machines, check quality and work on complex components will get full-time jobs since they are to valuable and likely also be in companies that routinely offer benefits. These are not easy to fill positions you need serious experience or training to do them and others.

    SEMISKILLED and UNSKILLED workers are just easier to replace you have a cook well there are lots of cooks, you need a retail cashier again there are plenty of those and unskilled workers if needed are aplenty.

    So I would say the issue is education our nation doesn't teach in high school those things needed for semiskilled leading to skilled work, skilled work right away and so our workers are suffering and the employers have more power on hours and the like. Say the Pizza Prep Worker was able to to say ,out of high school, operate a modern parts making machine he would likely be working 40 hours a week when hired he would be valuable to the employer that way. Or if they were a trained ,in florida, an AC/Heating Tech he could likely entry level at fewer hours but once he knew his trade would make more hours and money.

    But simple fact is wouldn't lots of people looking for work in areas easy to fill in the job market mean they can offer less hours and still meet business demands?
     
  18. unrealist42

    unrealist42 New Member

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    This is not necessarily a bad thing since the traditional employment model in this sort of low wage work had been strictly part time up until the last decades or so when a lot of companies shifted to the full time employment, mostly new immigrants, the only people who would accept such low wages full time and stay. This was a good thing for employers, the workers were more reliable and more available, as opposed to teenagers who have school and statutory limits on their hours and are a lot less reliable than an immigrant working towards the American dream.

    There has been a big lament lately among conservatives that part time employment for teenagers had disappeared from the fast food industry. The ACA could change that. The immigrants will not find the work so attractive, and employers will find them less attractive as employees since they will necessarily have multiple jobs which will limit their availability. Moving employees from full time to part time will bring a lot of attrition and vastly increase employee turnover. Costs will increase, perhaps more than any projected savings.

    What is going on here is a battle of business models. Here is two distinct models in retailing employment. The Wal Mart model and the Costco model. Wal Mart has mostly part time employees with low wages and few benefits. Costco has all full time employees with high wages and large benefit packages. Wal Mart budgets $500millions each year to battle employment lawsuits and expenses over $200million per year for employee turnover, which is around 20% per year. Costco has essentially zero expense on employee lawsuits and employee turnover is less than 1%. Costco generates more than 10 times the sales per employee than Wal Mart. All Costco employees get annual bonuses based on profits so for them increasing the efficiency of their own work brings rewards. Only Wal Mart managers get bonuses.

    It is easy enough to assume that the ACA will reduce full time employment if the only model you are aware of is the Wal Mart model, but that is not necessarily a model that will continue to be so profitable in the future. As employers move a large portion of the work force to part time the law will eventually adjust to make full time employment more attractive. This game that employers are playing may make them profitable over the short term but is generating a huge amount of bad will among the public, which will cost them over the medium to long term.
     
  19. pjohns

    pjohns Well-Known Member

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    I firmly believe that any company should do whatever it perceives to be in its best business interests.

    And it is very hard to argue that Walmart--the behemoth that it is--has pursued a course that is not especially congenial to its best business interests...
     
  20. hudson1955

    hudson1955 Well-Known Member Past Donor

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    Are you being serious? Get two part-time jobs that equal 40 hours? Sorry but that won't work. You must have one job where you work full-time.
     
  21. Albert Di Salvo

    Albert Di Salvo New Member

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    And none of these part time jobs will have living wages or benefits. In other words there will be a decline in American living standards.
     
  22. Albert Di Salvo

    Albert Di Salvo New Member

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    Obama doesn't have a legislative majority in congress to enact clean up legislation for Obamacare's problems, loopholes and glitches. The american people will have to endure the problems and expense.
     
  23. tkolter

    tkolter Well-Known Member

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    Why? Its a simple question.

    Many people now work full-time for Walmart at 28 hours a week, more work part-time and they have to get sometimes another job or do some form of self-employment to make more money. This was in fact the trend for unskilled or low skilled workers for some time now only skilled workers and those in careers with demand can assue full time work usually with benefits, even nurses are part-timers in my area more than full-time. Its how things are being done so instead of fighting for what was its time for us to develop new models of work and people having to do some downshifting a bit to fit that.
     
  24. tkolter

    tkolter Well-Known Member

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    Addendum: Walmart considers full-time workers to be 28 hours so work at their "full-time" or less.
     
  25. Richard Powell

    Richard Powell New Member

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    This post is effective as it has presented different view of the work style which is enforced in the work duration of Obama, This is an informative post in this direction.
     

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