Now that the American public have made their choice for President and other representatives who pushed for the Affordable Healthcare Act (A.K.A. Obamacare) the American public will now live with the consequences of that choice.
Now that President Obama has secured a second term, the prospects of Obamacare are not likely to be pulled back. Companies who were given waivers (SEIU, McDonald’s, Darden Restaurants (owners of the Olive Garden and Red Lobster restaurant chains), Aetna, the United Federation of Teachers Welfare Fund in New York, and Dish Network, ) aren’t too worried (See complete list of Obamacare waivers here) but many companies are going to be cutting back as a result.
Over a thousand companies have applied and been given waivers to this new piece of legislation and won’t have to operate under its mandate. It means that these companies believe that they can’t operate under the same rules as everybody else. I feel this is wrong.
Here is a list of companies planning layoffs due to Obamacare (Freedomworks.org)…”Forward!”
Welch Allyn, a company that manufactures medical diagnostic equipment in central New York, announced in September that they would be laying off 275 employees, or roughly 10% of their workforce over the next three years. One of the major reasons discussed for the layoffs was a proactive response to the Medical Device Tax mandated by the new healthcare law.
Dana Holding Corp.
As recently as a week ago, a global auto parts manufacturing company in Ohio known as Dana Holding Corp., warned their employees of potential layoffs, citing “$24 million over the next six years in additional U.S. health care expenses”. After laying off several white collar staffers, company insiders have hinted at more to come. The company will have to cover the additional $24 million cost somehow, which will likely equate to numerous cuts in their current workforce of 25,500 worldwide.
One of the biggest medical device manufacturers in the world, Stryker will close their facility in Orchard Park, New York, eliminating 96 jobs in December. Worse, they plan on countering the medical device tax in Obamacare by slashing 5% of their global workforce - an estimated 1,170 positions.
In October of 2009, Boston Scientific CEO Ray Elliott, warned that proposed taxes in the health care reform bill could “lead to significant job losses” for his company. Nearly two years later, Elliott announced that the company would be cutting anywhere between 1,200 and 1,400 jobs, while simultaneously shifting investments and workers overseas – to China.
In March of 2010, medical device maker Medtronic warned that Obamacare taxes could result in a reduction of precisely 1,000 jobs. That plan became reality when the company cut 500 positions over the summer, with another 500 set for the end of 2013.
A short list of other companies facing future layoffs at the hands of Obamacare:
- Smith & Nephew – 770 layoffs
- Abbott Labs – 700 layoffs
- Covidien – 595 layoffs
- Kinetic Concepts – 427 layoffs
- St. Jude Medical – 300 layoffs
- Hill Rom – 200 layoffs
Beyond the complete elimination of a significant number of American jobs is another looming problem created by the health care law – a shift from full-time to part-time workers.