Restaurants cutting workers hours

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Old 05-19-2013, 08:41 AM
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My daughter worked in the movie industry in California for about 15 years.
Except for a few major outfits (like Dreamworks) the standard procedure is that you are given a 3 month, 6 month or 9 month contract, so not to be eligible for benefits. This allows for major expenditures elsewhere, and a bonus to the hiring person if they keep the salary numbers down.

She has a friend who is a valued and sought after lighting tech. He has had his 'contract' renewed without break by his company, for the last 15 years. He often works 7 days a week for months at a time but gets no benefits. He gets tons of offers to go elsewhere, but the terms are the same.
It is part and parcel of the industry, unless you are in the highest echelon. There is always someone waiting who will jump at taking your place if you find it unacceptable.

My daughter now works for a not for profit environmental restoration organization. She gets some few benefits, but earns substantially less money. Not sure if it is an even exchange and she does have the satisfaction of the work, but that doesn't guarantee paying the electric bill and getting your teeth cleaned in the same week.
Many of our young people live in a different world now than we did then.

We could leave the house in the morning and find a decent job the same day. It might not have been the one we would keep forever, but we could always find a way to meet our basics without too much struggle, on our way to better and better. Companies groomed us once we were hired and invested in our futures with them if we showed the least amount of interest.

My bosses were ever my mentors, but that for the most part has changed today. For many young people, it is every man for himself, with an eye kept at their backside. I am glad I came up when I did.
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Old 05-19-2013, 10:27 AM
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Originally Posted by RVRoadie View Post
My son is visiting from Spain this month. He used to cook in one of the Country Clubs and at one of the Sumter Landing restaurants, and has been spending time with some of his old friends.

Several long term employees he has talked to have had their hours reduced to 29 per week. They refer to themselves as being affected by future national health care requirements because employers don't have to offer health insurance to workers under 30 hours per week.

Can't make for very happy employees.
It's not just the country clubs. My kid is a manger at a local restaurant and they have done the same, even through the high season. It's the nature of that business. Let's face it, it is unskilled labor and there are not many jobs that offer security or benefits for unskilled labor. Why do you think The Villages have so many part-time positions? Even the bank and other entities have been exploiting this opportunity.
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Old 05-19-2013, 10:54 AM
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It's not just the country clubs. My kid is a manger at a local restaurant and they have done the same, even through the high season. It's the nature of that business. Let's face it, it is unskilled labor and there are not many jobs that offer security or benefits for unskilled labor. Why do you think The Villages have so many part-time positions? Even the bank and other entities have been exploiting this opportunity.
Sadly, most of the people in these jobs make so little that they could have qualified for Medicaid if the Florida Legislature had not refused to accept the expansion, which would have covered almost one million uninsured Floridians.


So now, that 51 billion of federal dollars, earmarked for Florida, will go to other states to expand their Medicaid programs in the next ten years, while the legislators that rejected this money continue to pay $8 per month for their health insurance (or $30 per month for their entire family).
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Old 05-19-2013, 11:46 AM
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Benefits are a major factor for companies. Benefits ae expensive because they are subject to inflation and if given carry a liaibilit long fer employees leave their employ The liability aspect has played heavily on state/muncipal employees and is one reason why so many states and cities re running into bankruptcy issues. Even chicago's mayor is getting heat from public employees because he is attempting to bring Chicago's spnding under control.

In my day I took less pay (i.e. ignored the higher paying companies) because the benefits offerd by my company were really good. It has paid off
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Old 05-19-2013, 01:31 PM
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Someone has to pay for things.

By the way the clubs are owned by the developer but rented/leased to the businesses that run them.

And when the restaurant expenses go up, so will our meal prices..

That is how it works.

We can't have it both ways.
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Old 05-19-2013, 01:34 PM
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A company pays employees however much it can afford, taking into account the value of the work accomplished by the employee, and the need to stay competitive so the company can be profitable- not enough profits and no one has a job. Benefits are part of the total compensation package given to every employee according to how much the employee is worth to the company. Therefore, all benefits theoretically lowers your gross compensation- whether it is a retirement benefit, health insurance, vacation or sick pay, it all accumulates into your total compensation package.

The question of why employers are expected to cover their employee's health insurance at all is interesting. After all, employers don't pay for their employee's groceries, mortgage, clothing etc. Why is insurance singled out? My first response has always been that it is the HEALTH INSURANCE COMPANIES who have conspired to keep it this way. It has to be majorally cost effective for insurance companies to bill businesses once a month to cover thousands, or hundreds and even just a few insureds all at once instead of individually. And many employees, especially lower income employees, would put health insurance at the bottom of their list of bills to pay each month. By having the premiums be part of their compensation package, they never see the money and never have control over it. Employees never make the choice of whether to pay the bill and pay it on time. I would think most employers have their health insurance bills at the TOP of their priorities since non-payment would effect all their employees, including themselves.

Now suddenly things are changing for employers who have never been able to afford paying for a portion of their employees health insurance. The affordable care act is very complex and I don't understand very much of it, but I think employees will be required to cover a portion of the single rate of health insurance. For many employees, this is equivalent to either getting a large raise, (not always possible for the employer) or accepting a theoretical cut in pay (not acceptable to the ego of the employee) for something they may you may not currently have or feel they should be forced into having (health insurance).

I can understand why this situation is especially difficult for restaurants where much of employee's pay is in tips and they don't even get minimum wage. To suddenly have to cover a portion of employee's health insurance could be a huge increase in business expenses.

Another part of the affordable care act includes credits for health insurance to low wage employees by the government. This credit will be deducted by the health insurance company before the insured is billed. I am not sure if this credit will be available to insureds in an employer sponsored plan. If it is not, then it would make sense economically for employers of part time lower wage employees to keep their hours under 30/week.
  #22  
Old 05-19-2013, 02:11 PM
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Originally Posted by tainsley View Post
Before National health care so many
businesses only hired PT so they wouldn't have to pay any benefits at all! This has been going on for years! Especially in those "right to work states" like VA where I moved from. I believe it is because of the snowbirds returning north!
Absolutely correct. Companies long ago figured out that it is cheaper to have 2 part time employees without benefits than it is to have one full timer with benefits. Sometimes the free market isn't very pretty.
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Old 05-19-2013, 03:26 PM
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From what I have observed the wage scales in The Villages are kept low because of:
1. the large number of volunteer positions (no pay) that Villages residents occupy.
2. the large number of Villages residents who are willing to work for very low wages because they have other incomes and 'just want to have something to do'.
3. and employers who pay low wages because of a large available unskilled labor pool.

and I have not even suggested benefits and the part that they might play in this scenario.
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Old 05-19-2013, 03:28 PM
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Bankruptcy "isn't pretty" either.

Does anyone think about how much a restaurant would have to charge per plate, in order to pay $700-800/month per person, or more, for all the employees' health insurance????????????

"Affordable Care" has to first be "affordable" to an employer before it can be bought at group rates for an employee, even with them paying a portion of the premium!
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Old 05-19-2013, 03:41 PM
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Originally Posted by janmcn View Post
Sadly, most of the people in these jobs make so little that they could have qualified for Medicaid if the Florida Legislature had not refused to accept the expansion, which would have covered almost one million uninsured Floridians.


So now, that 51 billion of federal dollars, earmarked for Florida, will go to other states to expand their Medicaid programs in the next ten years, while the legislators that rejected this money continue to pay $8 per month for their health insurance (or $30 per month for their entire family).
There's more about this in this article linked.

Florida Senate Republicans Vote to Expand Obamacare and Medicaid, Rejecting House's Free-Market Alternative - Forbes
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Old 05-19-2013, 04:29 PM
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Originally Posted by ilovetv View Post
Bankruptcy "isn't pretty" either.

Does anyone think about how much a restaurant would have to charge per plate, in order to pay $700-800/month per person, or more, for all the employees' health insurance????????????

"Affordable Care" has to first be "affordable" to an employer before it can be bought at group rates for an employee, even with them paying a portion of the premium!
Agree with your statement. Businesses are not social welfare agencies. They must make ends meet plus a little profit to make it worth their efforts. The same people who want all workers to get full health benefits and higher pay are the same ones that will complain of high prices for meals and take their business to a lower priced business that has mostly low payed part time employees. We cannot have it both ways.
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Old 05-19-2013, 04:43 PM
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The Florida Senate was in favor of expanding medicaid, as was the governor, the hospitals, the Chamber of Commerce, but the Florida House said no.

The Florida Senate also pays more for their health insurance, but the House would not vote to raise their $8.24 per month tax-payer subsidized premiums.
  #28  
Old 05-19-2013, 04:55 PM
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The Florida Senate also pays more for their health insurance, but the House would not vote to raise their $8.24 per month tax-payer subsidized premiums.
But yet another example, of the attitude so often displayed by so many of: "I got mine...screw you."




As far as would I be willing to pay more, knowing a company was treating their employees decently?

You're damned right I would.

I think any decent person would too.


.
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Old 05-19-2013, 10:04 PM
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I think it's call the " Affordable Care Act" Because you are supposed to be able to afford it ,no??? So if it is so affordable let everyone pay for their own!! Case closed.
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Old 05-20-2013, 12:18 AM
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Season is over...happens every year.
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