Something to Think About

"I found it is the small everyday deeds of ordinary folk that keep the darkness at bay. Small acts of kindness and love."
- J.R.R. Tolkien, The Hobbit

Friday, November 16, 2012

Pizza CEO To Raise Pizza Prices Over Obamacare

Papa John's CEO, John Schattner, has an issue with the Affordable Care Act, also known as Obamacare. Part of the plan that has yet to kick in will require any employer with more than 50 employees to provide health insurance coverage for them or pay a fine of $2000 per employee per year. Currently, Mr. Schattner doesn't provide health insurance coverage for his employees.

Now many employers in this situation would simply decrease the wages for the employees to help cover that cost.  Mr Schattner's company, however, hires many of its workers at minimum wage so he cannot reduce their wages.  He'll have to pass that expense on to his customers, he declares!  It will now cost an extra 11 to 14 cents more per pizza!

Well, now.  Things might not be exactly the way he wants us to believe.  For one thing, Clare O'Conner of Forbes says it will be more like 3.4 to 4.6 cents per pizza, not the 11 to 14 cents more that Schattner touts.  Secondly, I don't know about you, but personally I wouldn't mind a 15-cent increase in the price of a pizza if I knew that extra money was going to insure the employees of the company.  Seriously.  15 cents isn't going to break me.  I find more change than that in the laundry every week.

Now, I'll be honest.  I'm not a fan of John Schattner. No, it's not because he was a major Romney supporter and fundraiser nor because he is a multi-millionare who lives in a mansion.  Nope! What gripes me is that he makes that much of a profit while he pays many of his employees minimum wage -which isn't enough for a person to live on now days- and then he turns around and gives away 2 million free pizzas this year as part of an NFL promotion. And now he has the nerve to complain that he will have to spend money to do right by his employees by offering health insurance to them.  There is something wrong with this picture, don't you think?

Sorry, Papa John.  I have no sympathy for you. I would feel my nerve to have to admit that I pay my employees minimum wage and then complain about a program that will cost me $5 to $8 million a year while I'm literally giving away $24 to $32 million in free pizzas.

Image obtained here

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