Restaurant chain experiments with more part-time work to avoid Obamacare costs

[cal04]

Last edited Mon Nov 12, 2012, 08:26 PM - Edit history (2)

Darden Concepts, Inc.—the umbrella corporation behind Red Lobster and Olive Garden, among other chain restaurants—is experimenting with hiring more part-time staff in order to offset the cost of implementing the Affordable Care Act. Rich Jeffers, a spokesperson for Darden, said the company was working on finding the “optimal mix” for satisfying the law’s requirements while “address[ing] the cost implications of the Affordable Care Act.”

“We’re not moving people from full time to part time,” said Jeffers. Instead, Darden has been “bringing on more people in part-time roles” in the restaurants they’ve opened since February, when the experiment began. The question the experiment is supposed to answer, he said, is, “Can we continue to deliver our brand experience with more part-time?”

If the experiment is a success, the company overall could come to rely more on part-time workers. Those new employees would likely not enjoy the same health benefits that all employees currently do. “Today we offer health care to all of our employees,” said Jeffers. But under the Affordable Care Act, which sets minimum standards for the health care being provided, “we can’t offer that.”

(snip)
Saru Jayaraman, the director of Restaurant Opportunities Centers (ROC) United, alleged that Darden was using the Affordable Care Act as a mere pretext to cut back on labor costs. ”Maybe they want to portray that that’s the cause of the issue, but it really isn’t,” she said. As In These Times reported in July, ROC has been engaged in a multi-city campaign against Darden for months over charges of wage theft, grueling hours, unpaid overtime, and even racial discrimination.
http://www.inthesetimes.com/working/entry/13585/restaurant_workers_target_unsavory_labor_practices_at_darden/


http://tv.msnbc.com/2012/10/11/restaurant-chain-experiments-with-more-part-time-work-to-avoid-obamacare-costs/


The Ed Show:
Papa John’s and workers: What’s Obamacare got to do with it?
(snip)
It’s just a convenient boogeyman that bosses like Schnatter can use to justify shedding decent, stable jobs from their companies.

http://tv.msnbc.com/2012/11/12/papa-johns-and-workers-whats-obamacare-got-to-do-with-it/

[mr_hat]

1. Let's hope that neither Red Lobster nor Olive Garden

can continue to deliver their "brand experience."

[kestrel91316]

12. I dunno. I'd kill for some Red Lobster cheese biscuits right about now.

[Panasonic]

18. Ask MineralMan for the receipe

Apparently he knows how to make it.

(I'd like to learn too)

[Skittles]

2. yup, it is total bullshit to blame it on ACA

this the trend from the capitalistic vulture bastards - keep everyone part time or contracted, begging for hours so they compete against each other

[nichomachus]

4. I had a friend who worked as a waiter

at a top-of-the-line restaurant. You got no benefits unless you worked 30 hours or so. The trick was that you had to repeatedly kiss the manager's ass. If you didn't, or if you complained about something, you were immediately put on 29 hours a week.

[Skittles]

9. that is exactly the way they want it

"kissing" his ass is probably the least of his demands

[nichomachus]

3. It has nothing to do with Obamacare

Big chains have been denying workers full-time work for decades.

My other half worked for Office Max in the '90s. He was one of four full-time employees. Everyone else got 28 hours a week.

Saying it's due to Obamacare is just nonsense.

[NYC Liberal]

14. I'll bet you that's the case for all these supposed layoffs.

Companies lay off people all the time. CEOs/owners who are mad that Romney lost are just blaming the layoffs they'd already planned on Obama to try to "stick it to him".

[liberal_at_heart]

20. My dad was at O'Reilly auto parts store

They guy he bought a part from said they work on commission now.

[GitRDun]

5. The Darden Brands

Red Lobster
Olive Garden
LongHorn Steakhouse
Bahama Breeze
Seasons 52
The Capital Grille
Eddie V's
Yard House

Screw them!

[redqueen]

15. Thanks. nt

[Vinca]

6. I know I'm a bad person for hoping this, but . . .

one good epidemic that originates in one of these restaurants and was caused by an employee who didn't have health coverage would wake these suckers up. Nothing captures their attention like millions of dollars in lawsuits.

[former-republican]

7. We are going to see a lot more of this.

[JVS]

8. In the silver lining department: more part time work means lower unemployment.

Underemployment may increase though.

[marmar]

13. Fewer hours at already low-wage service jobs?

Yaaaay !!!!

[JVS]

23. 3 40 hour jobs can also be 4 30 hour jobs.

[Dawson Leery]

10. Shop locally.

Ever see how many calories and fat are in Darden Dinners?

[Motown_Johnny]

11. I'm betting it won't last

I spent over 25 years in the restaurant business and I can tell you that 30 hour work weeks are about as common as unicorns.


Just the increased training costs of 30 hour per week employees v. 40 hour employees will be more than the cost of health care.

Most people want to try and increase the work week for businesses like this to 45 or 48 hours a week instead of 40. 30 is a joke.


If this does catch on then all we need to do is tweak the law so it covers employees who work more than 25 hours a week.

Their cure is worth than the disease, so to speak.

[Sheepshank]

16. I've worked in the Gov't regulatory end for decades

and typically 80-85% of food service employees are part time already and have been for years. For instance Chili's has 75 employees on the books at the local restaurant....only 6 are full time. All of this posturing and empty threats by the chains are annoying as hell.

[CurtEastPoint]

17. In poking around Darden's website

their 'comments' area has been removed (error 404). And I hope this doesn't sound racist but their CEO and Board Chairman is African American. One would think that someone of his stature would recognize the needs of the employees.

[Whovian]

19. I know that I won't be eating in a Darden restaurant again.

[Iggy]

21. Hasn't STARBUCK's Already Proven

You can give your workers health bennies.. and still make MONEY??

Darden's owns/operates Dead Lobster, Olive Garden, etc... These restaurants, like most chains, operate on very thin profit margins. if they have to pay an extra $50 for something-- anything, it matters because you have to multiply the cost by the 1,000 stores they own.

Regardless, the doctors looking at our OBESITY problem likely think we have too many restaurants. so if Darden's can't figure out how to make money by paying benefits to their skilled workers-- a couple of things are going to happen: 1.) part time less skilled workers means bad service for the customers-- they're going to lose those customers to other restaurants, and likely never get them back 2.) Darden's may have to close some of their restaurants-- kind of stupid/radical since a restaurant costs big money to build and operate. they may have a lease on the property the restaurant sits on-- typically ten year lease. it's not easy to close a restaurant and save money. it may actually cost more money to close a restaurant than keep it open. 3.) doctors might be happy, because people may eat out less.

if they close too many restaurants, the brand suffers overall-- again, stupid. that's why they saturate the country with their restaurants. you can't make big profits with just 50 restaurants.

[jody]

22. Some customers do choose restaurants based on price. To compete owners try to reduce costs and

what we see is the result of business decisions driven by competitive forces controlled by customers.

The alternative is government dictated rules that constrain operational decisions.

More government rules that affect Darden Concepts, Inc also affect any new small business.

Which do DUers want, (1) more government regulations that impedes small businesses or (2) more freedom for first time entrepreneurs to gamble on starting a new small business?