A friend shared this news today, since plenty of folks seem to have a hard time believing this happens when I say it, I thought I'd share it around some.

John Metz is a restauranteur in Florida. His company owns 40 Denny's franchises, several Dairy Queen locations and some undisclosed number of Hurricane Grill & Wings locations. I actually suppose calling him a "restauranteur" is a bit of a stretch, since all the restaurants he owns seem to be franchises, but that's a small thing to quibble over, right?

So, this is the bit that tends to get reactions of non-belief. I won't say (it is tough for me to judge) whether people think I'm not telling the truth, or that the practice itself beggars belief:

So, in order to avoid paying for health insurance, and to avoid paying fines for NOT providing health insurance, this CEO prefers to cut his employees hours to the point that he's not required to provide benefits any more.

Yes. It's true.

Of course, marking the menu prices up by 25% so that he can provide health insurance (or, heaven forbid, boost pay so that employees can afford it themselves) is not his top choice response.

Of course, my perspective is a bit different these days, but I'd cry tears of joy to pay ONLY $7.50 for a Grand Slam Breakfast.

He is saving a fortune! Money talks in business i guess!

two words: cheap bastard

Sad for the employees and the customers he will no longer server due to the increased prices...

But FINALLY someone recognizes the harm in all the regime's doings. He has quite a battle ahead.
JC

Do you care to clarify that statement? Are you agreeing with him and "Obama regime" is bad - or that "Corporate America" regime is bad?


Actually, the area where he's from, there is plenty of potential wealth to be spread around some. Certainly the retirees from the snow states that move to WPB can bear to pay an extra 25% at Denny's.

He's apparently also adding a 5% surcharge to cover the costs for health insurance: http://www.huffingtonpost.com/2012/1...n_2122412.html

The idea of providing everybody with a basic health insurance works in so many countries. I'll never understand why many Americans are so extremely against it.

One word? Money.


The issue from the employees who are in the situation of not having health insurance is that they can not afford to get it themselves because they're not paid enough. So, suddenly being told that you must acquire health insurance (to the tune of something upward of $500 per month) without any bump in wages is jaw dropping. There is no way I'd have been able to afford that on what I made working retail, or working as a reservationist at a hotel.

The issue from employers is that they'd have to give up some of their profits. (You may note, I have less feeling for them )


Now, this could be aided to a great degree by adjusting price to profit margin slightly, passing the money on to employees while at the same time, offering corporate rates to ALL employees instead of employer paying majority (or perhaps full cost) of insurance to some while providing no coverage at all to others. Everyone gets more money from employer, but everyone is also responsible for picking up their own insurance (at the same group rate the insurance companies were offering it to the employer).

Then again, being neither a business major nor an economist, perhaps my idea is a bit too simple to work.

a server paid 10$ an hour actually cost the employer 17-18$ depending where you are . with the Obama care it will become more than that obviously. And then if you look at how many employees (useless) these restaurants have you can see his point a bit....

I am all for the healthcare but I can see where he has to cut hours.
We got to remember that these restaurants make money in quantities since everything is sooooo damned cheap.


Also as far as why they are so agains it: I believe we forget the vast size of the USA , the diff in culture between them, income, cost etc etc. and thn the abuse people take of healthcare systems. I could not imagine controlling it in a country that size

Come now Anthony - surely no one would buy / open 40+ restaurants under someone else's name unless they knew they'd be drowning in profits?

Oh, and? I'm pretty sure that Denny's servers are highly unlikely to be getting paid $10/hr.

WPB isn't exactly the "poor" area of Florida either. Sure, the surcharge is fine, or simply increase the prices by 25%.

A little less "me me me" and a lot more "we we we" is what's needed!

Agreed, there is plenty of wealth to be spread around for all to enjoy. However, those sitting on the cash are IMO Snowbirds of the older generation. Exactly those are the ones that think today's prices are way too high and refuse to spend much more than the same prices as in the 50's and 60's, maybe into the 70's.

Who is the bad guy here? Hard to tell if it is Obama's clowns or the jokers sitting at the head of big business... all of the above sitting in their leather chairs laughing at the 99%/47%.

Look at the wages paid to a serviceman or woman that puts their life on the line for the country compared to the fat cats (pun intended) doing the laughing. Totally unfair.

So is the health care in the states... totally unfair for those that cannot afford it. Then comes along ObamaCare... Healthcare for all, but that is not free. The hundred thousand dollar question is: Who is going to pay for those that can not afford it? Taxes, taxes and more taxes... Which ends up unfair to the working. The money has to come from somewhere.
JC

It's such crap. But, the US has to get away from health care tied to jobs, because workers are held prisoner by a lot of these cheap bastards.

People really need to be able to purchase their own coverage at reasonable rates, and insurers need to stop controlling standards of care.

I don't know what's going to happen - but I get really annoyed when I hear these slime balls whining about the cost. They're terrorizing employees. Jon Stewart had a great segment on the Daily Show about the whining. If I can find it, I'll see if I can link it here.

Get the participation in your "we we we" from the 1% and I would bet that the majority of the 99% would play along. Which, in the long run, would smooth things out.
JC

Minimum wage for a server is as low as $2.35/hour in some states (Tenneessee comes to mind) if their employer does falls outside the US federal wage laws...

I used 10 for an easy number. Although I just read that the min wage will soon be going up to 8$ an hour. Thats the point why he has profits....because the state is not taking everything away. anyway thats besides the point.
If you look at the average wage in the usa of around 1500 a month. Here in CH you would have to pay it all before you receive anything...in txes and insurance and whatnot. so a system that works here looks in my opinion not to work there.


Min wages in the USA
HOLY S*it , look at the min wages when you are a tipped employee http://en.wikipedia.org/wiki/List_of_U.S._minimum_wages

You've missed something along the way.

The problem is that it IS the folks who ARE working who are also going without health insurance because of CEOs and CFOs being focused on "shareholder value" and lining their own pockets.

Hiring, or keeping folks to an average of under 30 hours in order to avoid paying health insurance is very common practice. It's one thing if these are people who are (for one reason or another) actually only seeking part time work but very often it is not the case. So people are forced to work 2 or 3 jobs at 25 - 30 hours a week with NONE of them giving them access to health insurance.

Top that off with the insurance companies mostly only dealing with employers, and the ones that do sell to private individuals really stick it to them, because they don't have the benefit of "group rates".

When I was working full time in optics, my contribution to my health insurance costs was roughly $150/mo, my employer's was another $300/mo, coming out to about the same as what I'd pay here. Some of the places I worked part time after my mother took sick offered corporate rates and access to their health insurance plans, so I was lucky (not that I worked enough hours / made enough money to take up the offer!), there are far too many places that don't even offer that much.

This is a "lower middle class" to "middle class" problem, not a problem of the truly poor (aka folks who are not working at all). Those who ARE truly poor (according to US standards) are provided with Medicare or Medicaid from the state.

Now you're getting the picture.

Sorry, but I haven't missed anything along the way. My words here are my views and if I quote, then I provide a source.

I am convinced that the employees will end up with the hard times, that is why I stated it is unfair to them to pull the weight of the country in their taxes and insurances.
JC

No, he has a profit because he pays near slave labour wages and is unwilling to pay his employees enough for a reasonably secure life

No you wouldn't. Apart from medical insurance the are zero rate bottom bands for most deductions. BTW the US average is nearer $ 3,500 per month

granted they are tipped alot but still I cannot get over that. But them you must also be able to see the point that they can simply not afford it on that wage (lets leave out the tips for now) And thats why the USA is still so cheap, cause you do not have to pay for things like insurance if you do not want to. Hell I wouldnt have it if I didnt need it here ....but again besides the point.


Just on another note : people that work 2-3 jobs; how do they still not make ends meet???? I do not get it. I was a Valet as a student and made 3k a month in MN which was plenty

Guys, what's wrong with you? not everybody should have access to healthcare...it's only 2012 after all.

When reducing the MAN HOURS, he either has to hire more personnel or drastically reduce the opening hours of his places.