A janitorial services company in the Chicago region recently implemented work hours cuts in order to avoid having to offer workers insurance coverage, as mandated by Obamacare. In response, members of the Service Employees International Union Local 1 are going on strike in opposition.
This is part of an alarming trend seen throughout the nation, as many of America's top employers are shaving hours and reducing health benefits for their employees in a bid to reduce the expenses associated with the Affordable Care Act. While the employer mandate – which requires them to buy insurance for employees if they have more than 50 on the payroll – has been postponed until 2015, the fact remains that many companies are still preparing for the tough times ahead.
The Washington Examiner noted in its report that the SEIU is a vocal supporter of Obamacare, and yet the White House refuses to acknowledge that the ACA is the root of this issue. In a recent news conference, White House Press Secretary Jay Carney dismissed reports of this kind as "anecdotal" and ignorant of "the statistics." Statistics aside, too many Americans are being forced into part-time employment as a result of the government's poorly considered mandate.
"We are seeing employer after employer cut hours so as to avoid the 30-hour definition of a full-time job," wrote Loretta Johnson, the leader of the American Federation of Teachers, another union, in a statement published by the Examiner.
Will this trend be reversed? It's tough to see a positive outcome, as the Obama administration is hell-bent on implementation. In the meantime, Americans can protect their income by investing in alternative options like cash flow real estate.