Remember when the owners of Red Lobster and Olive Garden realized that denying health care coverage to food service workers was not super popular amongst their customers? Well, that looked like SO MUCH FUN that a Wendy’s franchise in Omaha wants in on it, so employee hours will be reduced accordingly.
The company has announced that all non-management positions will have their hours reduced to 28 a week. Gary Burdette, vice president of operations for the local franchise, says the cuts are coming because the new Affordable Health Care Act requires employers to offer health insurance to employees working 32-38 hours a week. Under the current law they are not considered full time and that as a small business owner, he can’t afford to stay in operation and pay for everyone’s health insurance.
This will affect over 100 employees, who will now have to get by on a combination of crappy pay and part time hours.
If we were the CEO of a franchise that employed at least 100 people, many of whom were serving or preparing food, we’d be quite happy to make sure they had decent health care coverage, even if it meant reducing our profits by 5-10 cents per order. But this is why we are not in charge of a franchise that employs over 100 people–we still have not learned that you do not get rich by giving money away.