Do elections have consequences? Within hours of the reelection of President Barack Obama, American manufacturers and other employers announced massive layoffs. The reason: the high cost of complying with the Affordable Care Act, known as ObamaCare, and the anticipated economic stagnation that will accompany another four years of the leftist president’s plans for centralization.
The number of layoff announcements that we have seen in the days following the election has been absolutely shocking. Listed below are major corporations which announced layoffs last week (links take you to news stories about the layoffs – with details from the companies):
• Energizer –
The St. Louis-based company said Thursday that it expects to shed about 1,500 employees. When finished, the restructuring should lead to $200 million in pretax yearly savings, Energizer said. It aims to have most of its restructuring steps finished by the end of September 2014.
Exide Technologies announced Thursday that it will be idling its lead-recycling operations in Laureldale and laying off 150 workers, effective no later than March 31.
• Westinghouse –
Westinghouse Anniston, the contractor responsible for shutting down Anniston’s chemical weapons incinerator, has reduced its workforce by another 50 employees.
Research in Motion Ltd., the maker of BlackBerry smartphones, laid off about 200 people at its U.S. headquarters in Irving on Wednesday, according to a source close to the company who did not want to be named.
More than one dozen employees at a Pikeville company lost their jobs last week. Officials with Lightyear Network Solutions said they are consolidating offices in Louisville and Pikeville to save money.
The Providence Journal Co. laid off 23 full-time workers Wednesday as part of a cost-cutting effort, including 16 members of the Providence Newspaper Guild and 7 non-union employees.
The company says 240 employees will lose their jobs with the closing of Hawker Beechcraft Services facilities in Little Rock, Ark.; Mesa, Ariz.; and San Antonio, Texas.
Boeing Co. said Wednesday it plans to employ 30% fewer executives at its Boeing Defense, Space & Security unit by the end of 2012 compared to 2010 levels.
CVPH Medical Center has handed pink slips to 17 employees. The layoffs — nine in management and eight hourly staffers — are part of an effort to “help bolster the hospital’s financial position in 2013 and beyond,” a press release said.
• US Cellular –
The move will result in 980 job cuts at U.S. Cellular, with 640 in the Chicago area, according to a spokeswoman. The cuts are slightly under 12 percent of the approximately 8,400 total employees U.S. Cellular had at the end of the third quarter.
About 150 workers at Sistersville’s Momentive Performance Materials plant will be temporarily laid off later this month, officials said.
• Rocketdyne –
About 100 employees at Pratt & Whitney Rocketdyne, most of whom work in the San Fernando Valley, were laid off Wednesday in response to dwindling government spending on space exploration, the company said. The layoffs were effective immediately, and 75 percent of them came at the facilities on Canoga and De Soto avenues, which employ about 1,100 people. The company has six sites across the Valley.
• Brake Parts –
The leader of an automotive parts plant in Lincoln County has told state officials that there are plans to lay off 75 workers starting in late December…The layoffs are expected to start Dec. 28 and continue in the first quarter of 2013
Vestas Wind Systems A/S (VWS) is seeking to sell a stake of as much as 20 percent and said it’s reducing headcount by 3,000 to raise the staff cuts by the biggest wind turbine maker to almost a third over two years.
• Husqvarna –
Husqvarna AB (HUSQB), the world’s biggest maker of powered garden tools, plans to cut about 600 jobs in a move that will save 220 million kronor ($33 million) a year by 2014.
The Center for Hospice and Palliative Care plans to temporarily lay off as many as 40 employees next year as it embarks on a major renovation of the inpatient unit at its Cheektowaga campus.
• Bristol-Meyers –
Bristol-Myers Squibb is following up its lackluster third-quarter results with almost 480 layoffs. As Pharmalot reports, the company notified the New Jersey government that it would scale back in Plainsboro, which means the cuts will hit its sales operations.
Trumbull printer- and scanning-equipment provider Oce North America, Inc. will lay off 135 workers in three Connecticut communities, including East Hartford, according to its notice with the state Labor Department.
The company, which was among those who had received an Obamacare waiver in the past, is looking to limit workers to 28 hours per week. A full time employee that is required to have health insurance (lest the employer pay a fine) works 30 hours per week, as defined by the Obamacare law.
• West Ridge Mine –
In its statement, UtahAmerican Energy blames the Obama administration for instituting policies that will close down “204 American coal-fired power plants by 2014″ and for drastically reducing the market for coal.
United Blood Services Gulf South region, the non-profit blood service provider for much of south Louisiana and Mississippi, will lay off approximately 10 percent of its workforce. It was a hard decision to make according to Susan Begnaud, Regional Center Director for the Gulf South region.
As if a layoff isn’t tough enough for employees to deal with, imagine hearing the crushing news that your office is shutting down just before Thanksgiving and Christmas… Here are some of the business closings that have been announced:
To see even more companies that announced layoffs since the election, visit the Daily Job Cuts page.
This is only the beginning. Obama constantly claimed during his first term, as well as on the campaign trail, that he cares about small businesses and the middle class. But what he doesn’t realize, or chooses to ignore, is that the higher costs, the additional stifling regulations and the Obamacare mandates are going to drive businesses–specifically small businesses–into financial ruin. In addition to that, higher taxes on bigger businesses will simply be passed on to the consumer.
So why is this happening? Well, the truth is that the federal government is absolutely suffocating small businesses all over America with rules, regulations and taxes.
Many small business people were desperately holding out hope that Obamacare would be repealed so that they would not have to get rid of some of their employees.
Many were hoping to get a little bit of relief from the crippling regulations and taxes that are absolutely crushing them. But now that Barack Obama has been given another four years, they understand that there is no hope on the horizon and that things are only going to get worse.
So they are making the hard decisions that they feel are necessary in order to survive in this economic environment.
You can’t do what the federal government and the state governments are doing and expect to have a thriving economy. They are choking the life out of businesses.
New businesses and small businesses are supposed to be at the heart of our economic system. Unfortunately, the environment that has been created is absolutely killing them. This is a recipe for disaster.
Companies can potentially avoid being subject to Obamacare’s insurance requirements by limiting employees’ weekly hours to less than the 30 hour level defined by Obamacare as “full-time.”
A little-known section in the ObamaCare health reform law defines “full-time” work as averaging only 30 hours per week, a definition that will affect some employers who utilize part-time workers to trim the cost of complying with the ObamaCare rule that says businesses with 50 or more full-time workers must provide health insurance or pay a fine.
“The term ‘full-time employee’ means, with respect to any month, an employee who is employed on average at least 30 hours of service per week,” section 1513 of the law reads. (Scroll down to section 4, paragraph A.)
That section, known as the employer mandate, requires any business with 50 or more full-time employees to provide at least the minimum level of government-defined health coverage to those employees. In other words, a business must provide insurance if it has 50 or more employees working an average of just 30 hours per week, which is 10 hours per week fewer than the traditional 40-hour work week.
Thus, by cutting employees’ hours to ensure they average less than the 30 per week, employers could potentially avoid the cost of providing the minimum insurance levels mandated by Obamacare.
So if your company trims the number of workers to just under 50 or starts going to “29 hour work weeks”, then you will know who to blame.
All of this is complete and utter insanity. We are committing national economic suicide.
But perhaps we deserve this. After all, the American people chose this path, and now we get to see where it leads us. If this is happening during the first week after the election, the next four years are going to be rocky path indeed.