Fact: Since the elections, employers have announced over 1,000,000 layoffs.
There were so many in the pipeline that it was called the layoff bomb. And it has begun to detonate.
While it is easy to insult and mock the Chairman of Pappa John’s pizza, since he was a Romney supporter. And yes it is…
The big question I always have about announcements like this is: Were they hoping for some super quick sweet heart deal if Romney got elected? What about their state governments helping out.
I personally think the CEO’s are lying weasels. They wait for something else to happen to announce bad news so they can blame something other than a bad decision they made. I’ve seen it too many times in my corporate world. You lie and weasel your mistakes away until there’s big enough things happening to blame it on.
I wouldn’t claim the taxes or the environmental regulations aren’t hurting businesses: They are. I’ve seen it first hand. I’ve seen great projects die because of them.
I’m just saying this big announcement is too convenient and if Romney won these shut downs would still happen. They’d just be quieter about it nationally. Locally they’d still be big news but they’d be spread out so they wouldn’t explode nationally like this.
This is directly related to Health Care reform. And it is 100% real.
It won’t always mean layoffs. It will also mean that planned hiring will be curtailed. Positions lost through natural attrition won’t be filled. There may be a reduction in hourly employee schedules in order to get below the 30-hour-per-week threshold. Companies with heavy contractor loads may not renew contracts - those are considered “contract terminations” not layoffs.
On the plus side, retained hourly employees will have opportunities for overtime.
This is not simply CEO greed. This is tax. This is what America wanted, and there are real, predictable consequences to the economy.
The PPACA is not free. It’s just a matter of who pays. If you support Health Care Reform as the law is written, you support the impact to the economy. It is inappropriate to react with surprise.
For every company (small or large) that makes the news, inspiring “boycotts” there are a hundred more, silently doing the same. You cannot possibly boycott every company who will raise pricing or modify staffing plans as a result of HCR.
Respectfully, I do not understand why any HCR supporter would have any surprise or anger about this consequence.
EDIT: The “sweetheart deal” you mention with an Obama loss would have been the repeal of the PPACA - in whole or in part. The real detonation will coincide with 1/1/13. Some employers will wait through Christmas to give notice. Some will give notice at two weeks or one-month out from 12/31/12.
Yes, as a matter of fact I would be surprised that a 1.5% increase in health insurance costs would legitimately cause a million layoffs, PLUS equally significant curtailed planned hiring, unfilled natural attrition, conversion to part-time, and unrenewed contracts.
Seems to me, an executive who wasn’t already itching to pull the trigger on canning his employees would be able to find a way to work with the 1.5% increase. Like, pass the 1.5% extra on to the employees. I can’t think of anyone who would rather be unemployed than pay 1.5% extra on their health insurance.
So we’re either talking about astoundingly moronic CEOs, or lying weasel CEOs.