The LuLac Edition #2499, August 20th, 2013
Subway. (Photo: Entrepreneur.com)
MY SUBWAY DERAILED
I love Subway. My favorite sub is the Tuna on whole wheat, with Spinach, Provolone Cheese and light onions. It is the single best tasting lunch or light dinner that just electrifies my taste buds. And they tell me its good for you which I guess is a plus.
But now I must tell you that I am no longer going to eat any Subway product. So I guess you can say, “I loved Subway”.
The reason is the way certain Subway franchise owners have reacted to the Affordable Health Care Act. When the President said he was going to give businesses a year’s grace period to ramp up so that it could be prepared, I wrote here that it was a mistake and an open invitation for employers to screw their employees out of hours and health care. And damn if I wasn’t right.
In New England, a franchisee who owns 21 Subways has cut back his employees to 29 hours per week. You can qualify for health care at 30.
According to CNBC, Loren Goodridge who owns the eateries said, "To tell somebody that you've got to decrease their hours because of a law passed in Washington is very frustrating to me. I know the impact I'm having on some of my employees."
Goodridge said he's cutting the hours of 50 workers to no more than 29 a week so he won't trigger the provision in the new health care law that requires employers to offer coverage to employees who work 30 hours or more per week. The provision takes effect in 16 months. So the thing isn’t even going into effect yet and this guy sees an opportunity to mess with the health and welfare of his workers. And Washington didn’t tell him to cut those employees, he is doing it of his own selfish volition.
What galls me is he is blaming the Affordable Care Act for his unfair treatment of employees. A difference in an hour is what he is pissing and moaning about. The workers will blame Washington of course but maybe they should look in the eyes of the guy who owns 21 of these money making machines and ask “Why?”
Business people, if left to their own devices will always try to skirt the government regulations they so often wring their hands about. That’s why government has regulations to control these pillars of society. I heard this joker Goodridge doing the math on TV saying the cut to his employees per month could easily be a car payment for them. What a hypocrite! You’re the guy that’s cutting the hours. It’s like the old days around here when a miner got killed and the coal barons shrugged their shoulders and said, “Yeah, tragedy, heyna?”
But really, you have 21 franchises and you can’t do the decent thing? No where did this guy say anything about how much he stands to make as he screws his workers and buries them deeper into the lower middle class.
I’m off Subway because these mothers don’t deserve a red cent from any thinking American who has a friend or neighbor getting boned from cheap, punitive, small business moguls who hide behind their real intentions (like little babies hiding behind Momma’s skirts) and blame it on a health care program that has not even been enacted.
This guy’s Business Plan must have been a beaut.
In the meantime, you want a Sub around here, go to Primo’s, Wegmans’s or any reputable pizza joint. BUT NOT SUBWAY!!!!
IT CAN HAPPEN TO YOU!!!!!
Why is Health Care for the middle class so important? Let me give you two examples. This month there is a fundraiser for one of the women who was injured in the Ross Township Municipal Meeting shootings. The woman had no health care and now needs help with her Medical Bills after being shot. I don’t think she imagined she would be in that position but if affordable health care was available, perhaps her burden would be eased a bit.
On Friday night at PNC Park, a young lady, about 26 circled the bases as the Railriders and the Charlotte Knights cheered her on. A patient at Allied Services, in the prime of her young adulthood, she could not walk. I dson’t think she ever expected that would happen to her.
My point is this, these two cases are indicative of why providing affordable health care for middle class Americans is so important.
The GOP who is lying about this bill, passed by the Congress and reaffirmed by the Supreme Court keeps saying the Act will enable illegal immigrants and people on welfare free heath carer. They say it will cost you money because of that.
But they are wrong.
The Affordable Health Care Act, which is not free will give Americans access in case they get a disease that robs them of their mobility or in case they get shot minding their own business.
The lies really, really have to stop.
They are not only deceitful but downright unpatriotic.
posted by David Yonki @ 8:15 PM
21 comments
21 Comments:
So lets see. This guy spends his own money to open some franchises. Franchises that operate on a relatively low margin but still make him some money.
He gives people jobs but according to you doesn't have the right to decide how many people to employ, or how many hours he can have them work. He has to operate on an even smaller margin or even start closing his stores because of the whim of a government that feels it is entitled to tell him what to do with his investment.
It is really sad that you seek to punish people who take risks and can't run their businesses how they see fit. I guess everyone should just sit on their hands and do nothing, waiting for the government to come give them what the government deems they deserve.
I say he's doing the "decent thing" by opening a business and employing people, but to you the only "decent thing" is what you think he has to give people who CHOOSE to work for him.
About the only good thing you say in here is to go to a place for a good hoagie. Subway should always be your last resort if you want a quality sandwich.
Have you been paying attention and listening to business owners? I have. There are more and more requirements from the EPA, HSS, and other regulatory agencies that cost money. Money not associated with the product - extraneous cost.
The tactics Subway adopted was for their financial survival. EVERY business owner must find ways to be competitive and stay in business.
When are you going to wake up David? Boycotts don't work. The only thing you are doing is screwing the local economy and the kid making your food. You and Obama should rethink your action.
The leaders of three major U.S. unions, including the highly influential Teamsters, have sent a scathing open letter to Democratic leaders in Congress, warning that unless changes are made, President Obama’s health care reform plan will “destroy the foundation of the 40 hour work week that is the backbone of the American middle class.”
If that’s not bad enough, the Affordable Care Act, if not modified, will “destroy the very health and well being of our members along with millions of other hardworking Americans,” the letter says.
Lawmakers and staff can breathe easy — their health care tab is not going to soar next year.
The Office of Personnel Management, under heavy pressure from Capitol Hill, will issue a ruling that says the government can continue to make a contribution to the health care premiums of members of Congress and their aides, according to several Hill sources.
A White House official confirmed the deal and said the proposed regulations will be issued next week.
The problem was rooted in the original text of the Affordable Care Act. Sen. Chuck Grassley (R-Iowa) inserted a provision which said members of Congress and their aides must be covered by plans “created” by the law or “offered through an exchange.” Until now, OPM had not said if the Federal Employee Health Benefits Program could contribute premium payments toward plans on the exchange. If payments stopped, lawmakers and aides would have faced thousands of dollars in additional premium payments each year. Under the old system, the government contributed nearly 75 percent of premium payments.
A report from the House Ways and Means Committee finds that 71 of the nation’s top 100 companies would find it far more economical to drop their health care plans and simply pay the penalty for not complying with the Obamacare employer insurance mandate.
The report, published May 1, surveyed 71 of the 100 companies in the Fortune 100 list of large corporations and finds that all of them would save considerable amounts of money by dropping their health care coverage instead of complying with the Obamacare insurance mandate.
“According to data provided by the 71 Fortune 100 companies that responded to the inquiry, they could save a total of $28.6 billion in 2014 alone if they stopped offering health insurance to their U.S. employees and instead paid the employer mandate penalty for not doing so,” the report said.
How is cutting workers hours going to hurt Mr. Subway??? he'll just hire a few extra slaves to make up the difference..and not be forced to provide health care.
"If Medicare is adopted it will destroy America as we know it>"
Ronald Reagan, 1964
Now, in disagreement w/ Yonki, I will NOT go to Subway, but not solely because mgt. are PIGS, but the food sucks.
Want a good hoagie, go to a local non-franchise deli. Same for pizza.
Compare Papa Johns (who also employ slaves) to any local Mom/Pop establishement.
Papa's and the rest of the chains pizza is nothing less than cheap ketchup on cardboard w/sawdust compared to "real" pizza.
Fuck 'em all--the franchisees!!!!!!
Yonk, I understand your frustration but understand an owner's plight. Everyone, right away says that the owners are looking to increase their profits. Hogwash. They are preventing the government from transferring their salaries to health insurance. People are forgetting the investment that small business owners make in their community. If they put that money in the stock market it would be worth something aka it has value. So their salary plus the profit on their investment is what they are working for. I have $750,000 invested in my business which opened in 1982. I should be able to make $75,000 on that investment before salary otherwise what is the sense of me buying property, paying property taxes, and getting out of bed.
Under Medicare seniors had a choice on whether they wanted supplemental insurance to pick up the 20% Medicare didn't cover. Some chose not to purchase that supplement. This country is about freedom and choice, not a subtle takeover of those rights.
This is the same situation you see in California where you change the rules and try to force small business to pay, although in their situation its retroactive. Some business owners are facing as much as $200,000 in payments.
Each Subway franchise only employess about 8-12 employees according to its website. Under the ACA an individual store would be exempt. But because a franchisee is encouraged to open more than one store the number of employees employed by the franchisee increase over time. The franchisee didn't know the ACA would happen at the time. The ACA should have exempted situations like this to prevent this backlash. There isn't enough profit on an individual store basis to support health insurance for everyone. It would cost between $40-60,000 per store.
Total funds needed to open a single franchise range from $115,000 to $260,000 per store. Subway takes 12.5% off the top.
It isn't fair for people who make no investments in their communities and give people jobs to tell those who do its about their profits. Not meant as a personal attack but a general attack on what I read nationwide.
How many small business owners can afford to golf at Martha's Vineyard or go on a safari in Africa?
Yonk, it's only the beginning!! You know where I work and I get alot of calls about the exact same thing,businesses cutting hours to make their employees not eligeble for healthcare. Trust me, it's not only Subway---but I agree go to Primos, they are better anyway!
Hey 8:29
Isn't there room for all these choices and their price points? Get used to mom and pops going under when their prices are no longer competitive because they have to cover more and more government fees.
Slaves? Really? The "Occupy" movement has dissolved in its own acid. People can walk away and no one comes looking to drag 'em back.
Stuck in a dead-end job? Not slavery just choice results.
Have you seen the monetary chaos Medicare has wrought? Probably not. It's easy to pretend all is well.
Just what I look for in a restaurant---counter help, lacking a serious preventive health care plan, forced to come to work when they are ill because their employer is too cheap to provide decent benefits! What some flu virus with that flatbread? Pardon me while I retch!
Healthy in Ohio!
Subway sandwiches suck. Get yourself a good hoagie from one of the many local shops in NEPA.
As pointed out by posters there are at least two sides to this story. Lets get to the heart of it all and take on the Insurance Companies and the lobbyists particularly the retired ex congressmen and senators who continue peddling influence by becoming lobbyists.
How is cutting workers hours going to hurt Mr. Subway??? he'll just hire a few extra slaves to make up the difference..and not be forced to provide health care.
"If Medicare is adopted it will destroy America as we know it>"
Ronald Reagan, 1964
Now, in disagreement w/ Yonki, I will NOT go to Subway, but not solely because mgt. are PIGS, but the food sucks.
Want a good hoagie, go to a local non-franchise deli. Same for pizza.
Compare Papa Johns (who also employ slaves) to any local Mom/Pop establishement.
Papa's and the rest of the chains pizza is nothing less than cheap ketchup on cardboard w/sawdust compared to "real" pizza.
Don’t forget about Modern Markets subs. Yum!!!!
You are an idiot. Do you think all these local places aren't going to do the same thing as Subway.
Many chains are going to do the same thing. Dallas school district among many are going to do the same thing.
50 employees x $500 a month, minimum for health insurance adds up quickly. People don't go into business to provide jobs, they go into business to make money and employees are simply a tool to that end. Employees cost much more than just their salary, but do you have any clue, of course not. And, why should they over pay for unskilled labor? Subway and the like jobs were never intended to be primary wage earner jobs, but the economy, and it is now time for Obama to own this economy has not created any meaningful jobs.
"But really, you have 21 franchises and you can’t do the decent thing?"
Who the **** are you to decide what is decent? Have you ever had the balls to start a business? Have you ever men man enough to do anything but to attack others?
You try starting a business in this environment. Try investing your life savings, go into debt, put hours upon hours of sweat equity, and have some **** like you deem what is decent.
You think it is so easy, try it. Wait, that would mean you would have to have to actually have to take some risk and be held accountable instead of just attacking on a website. Until you have actually done something meaningful with your life, besides bitching about others, go **** yourself.
This comment has been removed by a blog administrator.
IN RESPONSE
You think it is so easy, try it. Wait, that would mean you would have to have to actually have to take some risk and be held accountable instead of just attacking on a website. Until you have actually done something meaningful with your life, besides bitching about others, go **** yourself.
STARTING A BUSINESS IS NOT EASY. BUT HENRY FORD PAID HIS EMPLOYEES A LIVING WAGE BACK IN THE DAY. I'M NOT ATTACKING ANYONE, JUST POINTING OUT THE FACTS THAT BUSINESSES DO NOY WANT THEIR EMPLOYEES UNDER THIS PLAN. AND IF THEY DON'T< AT SOME POINT< HEALTH CARE WILL BE SO MESSED UP, YOU'LL GET A PUBLIC OPTION.
AND YOU ARE RIGHT, I'D NEVER BE ABLE TO PERFORM SOME OF THE "BUSINESS" PRACTICES OF PEOPLE TODAY BECAUSE I'M NOT IN THE BUSINESS OF SCREWING PEOPLE OVER. HOW LONG SHALL 30 YEAR OLD COLLEGE GRADUATES HAVE TO BE "GRATEFUL" FOR JOBS AT PLACES LIKE SUBWAY?
AND DO NOT BLAME OBAMA FOR THIS BECAUSE THE GOP CONGRESS HA HELD U EVERY JOBS PROGFRAM HJE HAS PROPOSED.
AND BTW, MEANINGFUL IS IN THE EYE OF THE BEHODER AND THE PEOPLE WHO MATTER TO ME ARE I CARE ABOUT.
GO **** YOURSELF? WATCHING THE PORN AGAIN???
Dave, what is interesting is that no oner who is attacking you has said anything about your reference to the two people who had unintended health issues!! They just don't get it!
IN RESPONSE
Dave, what is interesting is that no oner who is attacking you has said anything about your reference to the two people had unintended health issues!! They just don't get it!
YEP, THEY'D PREFER TO SAY OBAMA CARE WILL ONLY HELP THE WELFARE CHEATS AND THE DRUG DEALERS HOPPING THE FENCES IN MEXICO.
Dave, I was a spectator at the Ciavarella trial in Scranton and enjoyed your fine reporting on it. One of my guity pleasures was the subs at Pappas. I think they called them grinders. Wonderful eats!
OK 9:49. I'll say it. It is quite sad that people have unintended health issues. Most of us have had them, and have had to weather the storms, both financially and physically.
I ask you, why is it expected that you pay on your own for insurance on your possessions, but not your health. You might have an unintended loss of property that can just as easily put you in the poorhouse.
The ACA isn't going to stop people from getting sick, so why is health coverage treated differently from any other insurance?
The fact of the matter is that many people gamble on not having coverage because they don't think they'll get sick and figure they'll save the bucks instead of spending them on insurance.
If the same people gamble and don't insure their house no one screams about universal homeowners coverage after lightning strikes the roof. "Should have planned better" would be the common refrain. Not so with health insurance. Why not?
Yonk, Looks to me like the several posts which were very verbose were written by the same person.
He/They are a perfect example of how middle America is voting against their own best interest and protecting the very wealthy. He/they can quote many reports that look like they were commissioned by FOX but he did not quote how the spread between workers and CEO's have grown so importunately. He leaves out the profit motive and I don't think any logical person thinks an investor in the private sector does not deserve a profit. To think that the Subway stores operate on a very small margin is beyond stupid. NO business continues to grow while earning very little. The return on investment just does not out weigh the risk if what they say is true.
Employers have more than one option in providing health insurance to employees but these guys think that employers are forced to cut employee hours yet they go on to quote how many billions business saves by screwing their employees. The working middle class would do very well if these idiotic good citizens would just simply fall of the face of the earth. We don't need corporate flag waiving shit for brains idiots fighting against the welfare of the average Americans while corporate America earns more and more in profit. I just listened to a report the other day about how the banks we the tax payers bailed out are now bigger than ever. Where is their outcry against sinful profits. Why are they not screaming that the bankers who raped America were not prosecuted? Its nice of you to post their stupid comments but if I ran LuLac, I would not give the idiots a platform to spread the FOS philosophy. I guarantee that these are the same fools who want Social Security privatized and forget what happened to the stock market in recent years. Idiots all.2
I'm in total agreement with you Yonk. There is a moral choice here to be made by these business owners. Do they offer their employees who unless they invent machines to replace them, have to be healthy to handle the food products, that cause their income? I would much rather see them raise the price of their product a buck, and give them healthcare What has become of this country? Is it time for a second revolution?
The working middle class would do very well if these idiotic good citizens would just simply fall of the face of the earth. We don't need corporate flag waiving shit for brains idiots fighting against the welfare of the average Americans while corporate America earns more and more in profit.
More anger than logic reduced the drone to name calling. Sad he never had to meet payroll. I do.
Something to consider:
Welfare pays more than a minimum-wage job in 35 states, creating little incentive for Americans to take entry-level work and likely increasing their long-term dependency on government help, according to a new study by the libertarian think tank Cato Institute. (hard to fault the logic when it confirms the things I see and hear daily)
The finds come 17 years after the Clinton administration, with bipartisan support from Congress, passed landmark welfare reform legislation that was supposed to move Americans away from entitlements and into the workforce.
However, “welfare benefits continue to outpace the income that most recipients can expect to earn from an entry-level job,” the study authors said. “And the balance between welfare and work may actually have grown worse in recent years.”
Among the other findings is that welfare in 13 states pays more than $15 an hour, compared with the federal hourly minimum wage of $7.25.
The disparity was even higher in nine states in which welfare pays more than the average first-year teacher’s salary and in the six most-generous states, which pay more than the entry-level salary for a computer programmer. (Montana $26,734)
The 52-page study, titled “The Work Versus Welfare Trade Off,” points out a full package of welfare benefits often exceeds take-home pay in part because benefits are tax-free. (California $26,962)
The study’s author argues that if Congress and state legislatures are serious about reducing welfare dependence and rewarding work, they should consider strengthening welfare-to-work requirements, removing exemptions and narrowing the definition of work. This could include reducing benefit levels and tightening eligibility requirements.
Cato senior fellow Michael Tanner, who did a similar study in 1995, repeated that the problem goes beyond legislative changes and that the country needs to reform its education system to better prepare Americans for the workforce.
He also repeated the argument that entry-level workers don’t stay at that level, arguing just 2.6 percent of full-time worker are poor and only 42 percent of Americans are engaged in work activities, which includes job training and looking for employment.
“We need to get people to think long term,” Tanner said
The Washington-based Center on Budget and Policy Priorities argues the study has several flaws, including that it "lumps together" a set of safety-net programs, including Medicaid, housing assistance and food stamps, and that "all poor families in which the parents aren’t working receive all of these benefits."
The study was also released amid a renewed standoff in Washington and elsewhere over whether to increase the minimum wage.
Fast-food workers in at least seven states have recently gone on strike to demand higher wages.
And President Obama last month again called to increase the minimum wage to $9 an hour for those who don’t get tips, saying “No one who works full-time in America should have to live in poverty.”
However, Congress appears to be in no hurry to fully address the issue.
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