POST ELECTION BUTTHEADS
In a previous post I commented about businesses that threatened employees with their jobs if Obama was re-elected. Without regard to what impact the election may have on their businesses, if any, some owners have followed through on their threats.

Robert Murray, chairman and CEO of Murray Energy, read a prayer to staff members the Wednesday after Obama’s re-election. “Lord, please forgive me and anyone with me in Murray Energy Corp. for the decisions that we are now forced to make to preserve the very existence of any of the enterprises that you have helped us build.” Murray then announced layoffs, including 54 people at American Coal, a subsidiary company, and 102 at Utah American Energy. Murray said that Obama’s “war on coal” was to blame, even though analysts have stated that the low-cost of natural gas coupled with the rise in costs of coal production is the true culprit. According to Murray Energy’s website, the company is the largest privately owned coal mining company, with close to 3,000 employees.

John Schnatter, the CEO of Papa John’s, says that he’d reduce workers’ hours in order to avoid paying for their health insurance. Before the election Schnatter told shareholders that Obamacare would make the cost of Papa John’s pizza increase anywhere between 11 and 14 cents. He said that “cutting employees’ work hours is probably what’s going to happen. It's common sense.” Papa John’s brought in over $454 million in gross income in 2011 from over $1.22 billion in sales. Schnatter estimates that implementing Obamacare will cost Papa John’s $5 to $8 million annually or less than 2% of their gross income on the high end.

Zane Tankel, CEO of Applebee’s restaurants said “We’ve calculated it will cost some millions of dollars across our system. So what does that say—that says we won’t build more restaurants. We won’t hire more people.” Tankel said he would also consider possible layoffs and cutting workers hours in order to avoid paying for their health insurance. Many Applebee’s employees make under $7/hour, while Applebee’s brings in an estimated $85,639 per employee. They had $1.08 billion in retail sales in 2011 and $419 million in gross income.

John Metz, the owner of 40 Denny’s franchise restaurants in Florida, plans to add a 5 percent surcharge to his customers’ checks to provide health care coverage to his employees. Metz said he hopes to get more restaurant owners to add a 5 percent surcharge on customers' checks: “We’re trying to get more restaurant operators rallied around the concept of adding a 5 percent surcharge to their bill to cover the costs of Obamacare as opposed to raising prices.” He has also said he will cut employees hours.
Jimmy John’s owner, Jimmy Liautaud said he will reduce workers' hours in order to avoid the Affordable Care Act's requirement to provide health coverage. According to Liautaud, Jimmy John's franchise restaurants employ around 60,000 hourly workers.
He has publicly attacked government levies before. He attracted attention in 2011 after telling local media in Champaign, Ill., that he was upset about a state tax hike. He said that he had already moved his family to Florida and said he will move his company's licensing division to Florida.
Hardee's, a $1.3 billion/year company, estimates that to give all their employees healthcare would cost an additional $18 million a year. The money, CEO Andy Puzder says, will have to come from somewhere. And he is not referring to the $1.3 billion they rake in annually. Instead, it will mean, according to Puzder the loss of 175 potential new jobs.
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What is happening is what is known as a self fulfilling prophecy. These businesses prophesied gloom and doom ahead of the elections and now are making it happen by following through on their threats to lay off workers. They are also trying to sway public opinion by threats of raising prices on product. They are acting out of spite, without any attempt at making it work and for that they are buttheads. What’s the old saying about “cutting off one's nose to spite the face?” Just one day more...