Grapevine rumors on jobs

[My Name Is Nobody 3]

Start preparing now if you work for a company who have 50-100 workers.

I hear mumblings in my line of work that these companies will start looking to reduce their workforce to under 50 so they can skirt the Guv mandates on employers.

It will depend on on how the accounting comes out. some say they will make more money by reducing employess along with a reduction in output instead of suppling mandatory insurance or paying a per employee fine.

They are saying screw the goverment.

The other possibility is reducing to under 50 and getting the rest from temp services. As needed.

Edited March 23, 2010 by My Name Is Nobody

[Dan J 277]

Start preparing now if you work for a company who have 50-100 workers.

I hear mumblings in my line of work that these companies will start looking to reduce their workforce to under 50 so they can skirt the Guv mandates on employers.

It will depend on on how the accounting comes out. some say they will make more money by reducing employess along with a reduction in output instead of suppling mandatory insurance or paying a per employee fine.

They are saying screw the goverment.

The other possibility is reducing to under 50 and getting the rest from temp services. As needed.

If anyone they are screwing their employees, they might be able to do it right now since its an employers market and people are taking any work they can get. But once the market recovers they will have a hard time recruiting employees.

[mawilson 2,133]

Why can't they just split the company into multiple, with fewer than 50 employees each?

[My Name Is Nobody 3]

Actually they wont be screwing their employess. But this is what happens when bad laws are passed.

The company wont feel bad because they will drop the insurance knowing the employee will be thrown a subsidy to buy insurance dictated by the Feds. The employee will still have insurance but it will be the cheap O insurance required by law. So the employer is not putting the employee out in the cold. The insurance will still be there but now paid by the taxpayer.

I think some of these businesses are smiling from ear to ear. They can see getting out from under the cost of health insurance for employees. More boats and toys for the owners.

Yes, you will see many splits to make a company appear to have less employees. I think the Temp sevices will boom also. They can supply and management a group of employees for a company.

[Mr. Big Dog 10,747]

The grapevine, eh? Sounds like the one with them sour grapes.

[My Name Is Nobody 3]

The grapevine, eh? Sounds like the one with them sour grapes.

Chester get out and educate yourself. Its all there in black and white. Sour grapes about what? What people in business are saying?

[Mr. Big Dog 10,747]

Chester get out and educate yourself. Its all there in black and white. Sour grapes about what? What people in business are saying?

Because you say so? Where's a credible source supporting that (sour) grapevine of yours?

[Nina~ 431]

[My Name Is Nobody 3]

Because you say so? Where's a credible source supporting that (sour) grapevine of yours?

No, I don't have an article. But it comes from real world talk in the business district. Screw the articles this is real life.

If you will humor me I will try and explain. This was about the action that businesses will take in reaction to a new law. Especially the very small ones with 50 to 100 employees.

Lets start simple. There is a mandate which states if you have 50 or more employees you must furnish health insurance or face fines or higher taxes per employee.

If I have 65 employess what will I do as a business owner? First, I will find a way to par my work force down to 50 people. I will need to get out from under the mandates and scrutiny of the Guv and IRS. This also means I will not have to furnish insurance for the remaining 49 employees. The Guv will give them money to buy their own since they make under 50,000 a year. No need for me to spend this money. They will be covered without me now. Good for all parties except taxpayers who will pay for the 49. Oh well.

My savings will be around $500,000 in health insurance expenditures for the year (low estimate).I see a vacation cottage on the lake for next year.

Do you understand?

[Dan J 277]

Actually they wont be screwing their employess. But this is what happens when bad laws are passed.

The company wont feel bad because they will drop the insurance knowing the employee will be thrown a subsidy to buy insurance dictated by the Feds. The employee will still have insurance but it will be the cheap O insurance required by law. So the employer is not putting the employee out in the cold. The insurance will still be there but now paid by the taxpayer.

I think some of these businesses are smiling from ear to ear. They can see getting out from under the cost of health insurance for employees. More boats and toys for the owners.

Yes, you will see many splits to make a company appear to have less employees. I think the Temp sevices will boom also. They can supply and management a group of employees for a company.

Businesses exploiting employees has nothing to do with laws and everything to do with money. There was a time when it was much worse, but we now have laws preventing that. Although now even some of those are being bent and pushed.

Some companies will do everything they can to avoid paying for health insurance. They are also companies that are going to find recruiting difficult and in time see an end to their business. All the good people will find better places to work. Or go into business for themselves.

This is not really about the cost of health insurance. Its about control. Very few companies were lobbying to get out of the health insurance provider area, simply because it allows them to use health insurance as a perk when hiring. It helps keep people at the job instead of going to someone else, because the employee may not want to risk not being covered. And prevents employees from going into business for themselves for the same reason.

[Dan J 277]

No, I don't have an article. But it comes from real world talk in the business district. Screw the articles this is real life.

If you will humor me I will try and explain. This was about the action that businesses will take in reaction to a new law. Especially the very small ones with 50 to 100 employees.

Lets start simple. There is a mandate which states if you have 50 or more employees you must furnish health insurance or face fines or higher taxes per employee.

If I have 65 employess what will I do as a business owner? First, I will find a way to par my work force down to 50 people. I will need to get out from under the mandates and scrutiny of the Guv and IRS. This also means I will not have to furnish insurance for the remaining 49 employees. The Guv will give them money to buy their own since they make under 50,000 a year. No need for me to spend this money. They will be covered without me now. Good for all parties except taxpayers who will pay for the 49. Oh well.

My savings will be around $500,000 in health insurance expenditures for the year (low estimate).I see a vacation cottage on the lake for next year.

Do you understand?

You will also have a hard time finding good employees. Offer no health insurance, and they will go work for your competitor. Those you get left with are probably not good enough to get hired by a competitor.

You are basically destroying your human capital, to take more money home with you. In the long term a very poor decision. If all your employees are working in positions that can easily be automated, replace them with robots and you can get rid of most of your salary too.

[My Name Is Nobody 3]

Unemployment rate is in reality 16%-17%. Everyone is looking for a job. This will make it easy to find good employees .

I wont be denying health insurance for the employees. Obamacare is going to take care of that. So they will have affordable health insurance. No exploiting going on.

Danny o boy as I told Chester you need to get out in the real world.

Im trying to explain what bad laws do. This will happen.

Most businesses were happy with the way things were but now the Guv wants to stick their nose in the equation. The employers will bail if possible.

[Usui Takumi 1,562]

I'm pretty sure I heard this argument before. When Congress tried to pass a holiday law. IE 1 work week minimum.

[Mr. Big Dog 10,747]

No, I don't have an article. But it comes from real world talk in the business district. Screw the articles this is real life.

If you will humor me I will try and explain. This was about the action that businesses will take in reaction to a new law. Especially the very small ones with 50 to 100 employees.

Lets start simple. There is a mandate which states if you have 50 or more employees you must furnish health insurance or face fines or higher taxes per employee.

If I have 65 employess what will I do as a business owner? First, I will find a way to par my work force down to 50 people. I will need to get out from under the mandates and scrutiny of the Guv and IRS. This also means I will not have to furnish insurance for the remaining 49 employees. The Guv will give them money to buy their own since they make under 50,000 a year. No need for me to spend this money. They will be covered without me now. Good for all parties except taxpayers who will pay for the 49. Oh well.

My savings will be around $500,000 in health insurance expenditures for the year (low estimate).I see a vacation cottage on the lake for next year.

Do you understand?

The scenario you give omits one important factor: the quality of employee you will be able to retain. Good luck running your business with the rejects that can't get a job with an employer that values them. The lost productivity will cost you more than you will save.

[Mr. Big Dog 10,747]

Im trying to explain what bad laws do. This will happen.

It won't. The unemployment rate isn't going to be this bad forever. And your short-sighted strategery will get you into hot water once decent employers become an alternative for the staff you are looking to slave around. They'll run and they won't come back. A reputation is a hard thing to build and an easy thing to lose. Ask the folks at Toyota.