The President recently chastised Staples for reducing worker hours and mandating that no part-time employee work more than 25 hours per week. Staples says the policy has been in effect for many years and is just being reinforced.
MarketWatch says “The news website BuzzFeed had reported earlier this week that Staples had toughened up enforcement of a rule limiting part-time employees to 25 hours. The story reported that the company’s stance was seen by many workers as an effort to avoid paying benefits.”
The President in typical fashion jumped on the CEOs pay ($10 million) and Company earnings.
“I haven’t looked at Staples stock lately or what the compensation of the CEO is, but I suspect that they could well afford to treat their workers favorably and give them some basic financial security, and if they can’t, then they should be willing to allow those workers to get the Affordable Care Act without cutting wages,” Obama said. NYTs
Well, you can look at Staples financials right here. It’s revenue has not been increasing, net income is flat and its profit margin is modest.
Looking at the memos to managers and notices posted in work locations, it is highly questionable that this was merely reinforcing adherence to a long standing policy. Either that or their corporate communications did a poor job.
However, Staples not only promotes healthcare.gov on it’s employee website, it also offers benefits to part-time workers, although not credible coverage as defined by the ACA.
Whatever the truth, Staples and all other corporations are reacting to the ACA and doing so to avoid additional costs. As much as we would like those running corporations to act ethically, they are not social agencies and have a responsibility to act in the best interest of their investors [much like we hope politicians act in the best interest of their constituents as opposed to their largest donors😏].
Staples may be acting in its own interest to the extent permitted by law not unlike Mr Obama legally placing five years of 529 contributions into his children’s accounts thereby grandfathering the tax benefits in advance of proposing the now defunct tax change. 👌
QUINNSCOMMENTARY 