Applebee's Obamacare: Employees Fired; Is Your Job At Risk? [VIDEO]
Just days after the election, Zane Tankel, chairman and CEO of Apple-Metro, a New York metropolitan franchisee of the popular family-style restaurant chain that operates 40 Applebee's, related to Fox Business that Obamacare's regulations were going to destroy his company's bottom line in a way that, according to Tankel's most optimistic figures, would see his forty Applebee's stores laying off or firing some of its employees, and switching a significant portion of its full-time labor force to a part-time labor force.
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Though he did not confirm just how many Applebee's workers would be fired or lose their jobs over the increase in bottom line for fear of causing a panic, Zane Tankel did confirm that a shrinking of his workforce, and a firing of his employees, would be inevitable.
The Fox Business News segment opened with a focus on Obamacare's penalty of $2,000 a year for employers per employee not covered by a government-approved healthcare plan. Tankel confirmed that any one of his Applebee's franchises has a minimum of 80 full-time employees and, if it's in the city, as many as 300 full-time employees. By that logic, the costs of Obamacare should be whopping, right?
"If you don't [give your employees healthcare], then you have to pay $600,000 a year in fines," confirmed the host of Regulation Nation, "Does that take away all your profitability or a big chunk of it, what does it do to you?"
"Sure it does," said Zane Tankel of his Applebee's chain. And he's absolutely correct. $600,000 in penalties for just one store would come as a serious blow to the bottom line.
Too bad this discourse doesn't cover the actual cost of Obamacare and how much less it will cost to ensure all of his employees.
Instead, the tenor of the conversation concerns itself only with the numbers resulting from the harsh penalties-- the worst case scenario devised by the government to ensure that the choice to cover employees over paying the steep fine is incentivizes. In much the same way that jail isn't better, nor fines and penalties more cost-efficient than the crime, so is this $2,000 fine the wrong way of looking at the costs of Obamacare.
If these harsh penalties were, in fact, the cost of Obamacare, then this discussion has more worthy legs. However, to say that $2,000 dollars a year per employee is the cost of Obamacare is like saying that since corporate penalties for insider trading are $25 million, then the cost of running a business is an extra $25 million a year.
Simply put: this is all factually misleading, using the wrong numbers to support the wrong conclusions.
When the conversation shifted to whether or not Applebee's would fire any of its employees, Zane Tankel was less willing to give an official answer, saying instead: "It will be some millions of dollars across [the Applebee's system.] If it's possible to do without cutting people back, I am delighted to do it."
Continued Tankel of his Applebee's chain, "In a best case scenario, we only shrink the labor force minimally. Best case.
Across the board, said Tankel, Obamacare's penalties will cost $4,000,000 a year.
Who knew breaking the law to ensure that your devoted full-time employees didn't have healthcare could be so expensive?
And frighteningly enough, if more CEOs, employers, and job-creators start sipping this kool-aid, it's very possible that your job could be at risk, too.
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