They were not offering healthcare benefits anyway; where do you think those people have been going? Did Darden do what Walmart did? Instruct them on how to apply for Medicaide? or did they just go to the ER for free care like Mitt suggested was possible?<quoted text>
Darden Foods, owners of the Olive Garden and Red Lobster franchises, announced plans to cut back hours to make employees part time instead of full time. This measure is being done to circumvent obamacare legislation. Oddly enough Darden's CEO is an ardent supporter of the democratic party and president Uh-bama. My-oh-my.
The issue, Peppy, is that we, the taxpayers end up paying for all of the uninsured as it is; that is why we have a healthcare act.
Nationally, 60 percent of companies offer health benefits, but the figure varies depending on the size of the company. Nearly all companies with 200 or more workers offer benefits, compared with 48 percent for companies with 3-9 workers, according to the Kaiser Family Foundation.
Even beyond health care costs, however, Darden has made cutting labor costs a priority in recent years as sales growth has stalled at its flagship chains. In the most recent fiscal quarter, the company's restaurant labor costs were 31 percent of sales. That's down from 33 percent three years ago.
And last year, the company also put workers on a "tip sharing" program, meaning waiters and waitresses share their tips with other employees such as busboys and bartenders. That allows Darden to pay more workers a far lower "tip credit wage" of $2.13, rather than the federal minimum wage of $7.25 an hour.
Starting next year, the company will change the way it offers health insurance to full-time employees, to keep costs more predictable. Instead of offering one insurance plan for all 45,000 employees, it will give workers a contribution toward buying coverage and then send them to an online health insurance exchange where they can chose from five medical, four dental and three vision plans.
More employers are looking at this concept, known as defined contribution health insurance, as a way to stabilize health insurance costs.
Darden said it decided to do it because a survey indicated that employees wanted more options.