Friday, October 12, 2012

Does Obamacare Cost Jobs?

The other day I posted Business Math 101 (which, by the way, for some reason is already almost my most popular post of all time) and today we get to see the some real life examples of how business responds to increased costs.

Responses to Obamacare.

Olive Garden

Olive Garden 2.

Yes, Obamacare is costing jobs. At least full-time jobs.

Next Question?


engelj06 said...

One could argue that by moving a majority of their employees to part time Olive Garden will have to hire more employees to cover the missing hours thus creating more jobs.

Just saying

Also a vast majority of restaurant employees are part time

An Edjamikated Redneck said...

Or they could call them part-time, not pay them benefits, and still work them 40 hours a week?

Also, remembering Business Math 101; what happens when Olive Garden loses employees places that still offer full time employment?

How much poor service will you put up with before finding somewhere else to eat?

engelj06 said...

Restaurants are a bad example in my opinion. Your service won't suffer since in the end it is you not Olive Garden paying the salary if the server, busser bartender etc. Olive Garden only pays them 2.13 an hour.

Also from my personal experience this stuff has been going on since 2000 so it's not new or solely caused by obamacare.

An Edjamikated Redneck said...

Agreed; Resturants have been putting up with the cost squeeze a lot longer than most industries.

Which is another reason Olive Gardens' responses are of particular interest; they have been balancing cost/expense/income carefully for years.

Manufacturing most likely will never adopt a part-time worker stratagy, but other retail? Wal-Mart, Krogers? maybe even Macys?