ONTD Political

Papa John's CEO John Schnatter Says Company Will Reduce Workers' Hours In Response To Obamacare

10:14 pm - 11/09/2012

Papa Johns Obamacare

In the wake of President Obama's reelection, one CEO is doubling down on his criticisms of Obamacare.

Papa John’s CEO John Schnatter said he plans on passing the costs of health care reform to his business onto his workers. Schnatter said he will likely reduce workers’ hours, as a result of President Obama's reelection, the Naples News reports. Schnatter made headlines over the summer when he told shareholders that the cost of a Papa John’s pizza will increase by between 11 and 14 cents due to Obamacare.

"I got in a bunch of trouble for this," he said, referring to the comments he made in August, according to Naples News. "That's what you do, is you pass on costs. Unfortunately, I don't think people know what they're going to pay for this."

Schnatter went on to say he's neither in support of, nor against the Affordable Care Act, even admitting that "the good news is 100 percent of the population is going to have health insurance.” But he’s not the only one in the chain restaurant industry to admit that workers hours may be reduced, since Obamacare mandates that only employees that work more than 30 hours per week are covered under their employers health insurance plan. For example, Darden restaurants, the parent company of Olive Garden and Red Lobster, has already experimented with reducing workers hours in anticipation of the legislation.

Others have responded to the added costs of Obamacare more harshly, includingApplebee's which has said it won’t hire new workers because of the law. Just this week, a Georgia business owner also claimed he cut employees due to Obamacareand in fact had specifically laid off those who he thought had voted for President Obama.


Welp, yet another reason to patronize my local pizza place (that and their pizza isn't total shit...Go Amante is Seattle!) Also, yeah--I realy believe that this douchcanoe is totally neutral on Obamacare. Riiiiight.
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effervescent 10th-Nov-2012 05:16 pm (UTC)
:/ crossing my fingers that companies will get used to this being the new reality, rather than continuing for years to try and wriggle out of their responsibilities.

I can't help but think that this is why completely socialised healthcare would be better - you can't have business worried about profit involved in the health and welfare of the average person.
romp 11th-Nov-2012 09:05 am (UTC)
Exactly. They have to provide care...but they also have to maximize profit for shareholders. These conflict.
ceilidh 10th-Nov-2012 05:18 pm (UTC)
I hate his shitty pizza with its nasty cardboard crust and now it's officially banned at my house. I like the take and bakes from the local pizza place bette.r

not all businesses are acting this petulant, thankfully. my husband has been part time at best buy for the last year (he had a full time job and then quit when we moved so I can go to graduate school) and a couple weeks ago they made him full time and are sticking with it.
omimouse 10th-Nov-2012 06:33 pm (UTC)
Yeah, someone I know works at Best Buy, and they gave him an actual decent raise for "going above and beyond" what he strictly needed to do so that things ran more smoothly and efficiently. He also got IN PERSON PRAISE from his supervisor as part of this.
hinoema 10th-Nov-2012 05:29 pm (UTC)
Does he even know what the actual cost breakdown is, yet? What a whiner. His franchisees need to switch to a better company. LaRosa's and Papa Murphy's are big out here.
pennylane101 10th-Nov-2012 05:34 pm (UTC)
this will last a few weeks trying to make people believe obamacare is EVIL and that's that. if there's demand workers will ll get the hours period.

and just wait until obamacare kicks in in full. people will worship O forever
tigerdreams 10th-Nov-2012 07:05 pm (UTC)
Unless they just hire additional part-timers. That's a popular scam: hiring two part-time employees instead of one full-time, to avoid paying benefits and PTO and whatnot.
lovedforaday 10th-Nov-2012 05:41 pm (UTC)
This is a shitty form of protest.
amethystcitrine 10th-Nov-2012 05:42 pm (UTC)
No one wants to eat that shitty pizza anyway.
sunoftheskye 10th-Nov-2012 05:55 pm (UTC)
Does anyone have any idea for what can be done about this? I'm seriously so angry right now. People need to understand that you know, it's in your best fucking interest to have healthy employees who can take care of themselves and their families, and whose entire lives don't get ruined because they get sick or have some sort of accident.
layweed 10th-Nov-2012 05:59 pm (UTC)
Boycott the business? Idk what else they can do. If I actually bought from them, I would be more than happy to pay an extra 10-15c (shit even $1) if it meant that their employees would get healthcare benefits. 'course, I would rather the fat cats at the top tighten their belts and find some way of giving benefits without passing it on to the consumer, but that's not gonna happen. Sigh.
the_physicist 10th-Nov-2012 06:03 pm (UTC)
we have that chain of pizza places here in the UK. somehow it still exists despite things like minimum wage, healthcare for all, unemployment benefits... funny that.
layweed 10th-Nov-2012 06:06 pm (UTC)
Yeah but all you Europeans are socialists! NOT FREEDOM LOVING AMURRRRRRRRRRIKANS!
sunoftheskye Love this comment at the source10th-Nov-2012 06:06 pm (UTC)
I'm sorry but I am so cracking up at some of these comments supporting Papa Johns decision to cut hours and layoffs. I have heard everything from, "yeah now he is going to sell that pizza at $30 to stay in business or this "this Obamacare is going to bring our country down." In reality all this Papa John dude had to do was simply increase the price of his cut rate tasteless pizza by a mere 14 cents and life would go on and no one would even notice and at least his employees would be covered with a health care policy. But no, this dolt Papa John is intent upon making a big deal because he didn't have his way and who suffers for that? The people who need these jobs and the famalies who depend upon these wage earners. So Mr. Big Shot Papa John will do as he says but has he even thought once that he will lose revenue because people will stop buying that junk he passes off for pizza?

the_physicist Re: Love this comment at the source10th-Nov-2012 06:23 pm (UTC)
that is a great comment. thanks for quoting it.
furrygreen 10th-Nov-2012 06:33 pm (UTC)
This is so depressing. I was listening to "Who Stole the American Dream" at work last night and then I come home and read this. America has turned into the hardest first world country to rise above your current class. Companies are laying off workers because they don't like the expense of a sick family member and this asshat has a moat.

What more can you say?
bestdaywelived 10th-Nov-2012 08:09 pm (UTC)
It really is. And when you have Rethugs saying things like, oh, START A BUSINESS! SMALL BIZ OWNERS MAKE ALL THE MONEY, it doesn't help. If you grow up lower-class, you don't have the ability to get a loan to start that fucking business. If you grow up lower-class, you don't learn all of the things that middle and upper class folks are trained on from a young age and you can't benefit from the financial wisdom of your parents.

I was the first person in my whole family to go to college. I had to fucking WING IT. My parents were uninformed and are still uninformed about a whole mess of things, including whether students need their own computer (they said NO, just use the library ... not grasping that paper writing etc. requires more than a 2-hr stint at a computer, or that I couldn't handwrite things and turn them in), the value of unpaid internships ("you can't work for FREE"), the difference between an Associate and a Bachelor's degree ("community college is better because you're done faster and only take classes you NEED"), etc.

This is not to mention all of the cultural disadvantages that I had, growing up in a lower class home. I didn't learn how to have a proper restaurant meal, so I would do things like eat regular food on a salad plate at dinner events (until a kind friend told me), I can't benefit from career advice, and they are financially ignorant. My middle and upper class friends had much more of a leg up than my hard work and good grades could make up for. I didn't know what "professional dress" was, because my parents worked in factories.
mskye 10th-Nov-2012 06:39 pm (UTC)
ugh papa johns makes my intestines hurt
jeunelis 10th-Nov-2012 06:43 pm (UTC)
Dear Applebees, don't play, you didn't give health insurance to anyone but managers.

Former Apple Buddy.
etherealtsuki 10th-Nov-2012 08:36 pm (UTC)
You never have to convince me never stepping in another Applebee's again. Overpriced shit.

LOL, I remember there was a screencap of a 4chan post of a former Applebee employee who blasted their recipes online.
teacup_werewolf 10th-Nov-2012 06:43 pm (UTC)
Uuuughhh this is making me queasy, there is a good chance I can't find a new job before my ankle surgery and because I am part time at my old job, I have no health benefits (or job security) so I am fraking screwed. Whats more I am not sure if I am on medicaid yet to pay for said ankle care. Obamacare protected me until I was twenty six, now I am SOL.
the_physicist 10th-Nov-2012 10:02 pm (UTC)
i really hope you can find a new job, but i can understand it really isn't easy at the moment.
salienne 10th-Nov-2012 06:47 pm (UTC)
And this is why we need single payer/a public option, so assholes like this don't keep people from getting health insurance and medical care.

Or at the very least, some sort of regulation or financial punishment to keep business owners from screwing over their employees in this way.
liret 10th-Nov-2012 08:30 pm (UTC)
The one good thing is that at least now all the part time employees who are being kept just under 30 hours so they don't get benifits ( because it's not like that's new) will have better options in the state exchanges then they did before.
tabaqui 10th-Nov-2012 06:50 pm (UTC)
Fuck this guy.
lovelokest 10th-Nov-2012 06:59 pm (UTC)
Ugh, what a fucking douchecanoe. I haven't eaten there since he made his moronic comments about raising the price of his pizza because of Obamacare. Yet more reasons why I'll be eating mainly at Glass Nickel Pizza to get my pizza fix. Pizza is better tasting, they care about the environment and they had a pizza named after Ed Schultz for a while :D
mykaa 10th-Nov-2012 07:04 pm (UTC)
All I heard was "I am an asshole and don't want to pay for my workers health insurance."
365reasonswhy 10th-Nov-2012 07:06 pm (UTC)
"That's what you do, is you pass on costs. Unfortunately, I don't think people know what they're going to pay for this."

I won't be paying anything for this, since I won't be buying pizza from you, you unbelievable douchebag.

liret 10th-Nov-2012 07:30 pm (UTC)
For what it's worth, their online feedback form is here. And one of the options in the 'other' category is even 'corporate social responsibility issue.'

I just found out Domino's is apparently owned by Bain. I really hope Papa Gino's isn't also on the conservative pizza bandwagon, so at least New England will still have a decent chain option. (Aparently the founders were, 20 years ago, but they seem to have distanced themselves since and never involved the business so I can live with that.)
shortsweetcynic 10th-Nov-2012 08:06 pm (UTC)
I just found out Domino's is apparently owned by Bain.

so tonight i'll be finding a recipe for pizza dough and making my own at home from now on.

(not actually a huge loss; they fuck up more of my orders than they get right.)
celtic_thistle 10th-Nov-2012 07:47 pm (UTC)
Fuck this douchebag for skirting federal law and screwing over countless employees in the process. I was already boycotting them because of this, but him ACTUALLY doing it seals the deal for me. Prick.
caerfrli 10th-Nov-2012 07:49 pm (UTC)
The less pizza they make the fewer people who eat it and the less health care they'll need. Win win
liret 10th-Nov-2012 08:24 pm (UTC)
Um. What?
simply_blah 10th-Nov-2012 08:22 pm (UTC)
Asshole. It's not about Obamacare. It's about being cheap.
etherealtsuki 10th-Nov-2012 08:39 pm (UTC)
Yup, all he cares about protecting his profits. If the job economy wasn't so shit, I wish all the employee just fucking desert him.
thistlerose 10th-Nov-2012 08:25 pm (UTC)
I hate people like him so fucking much. They bleat about personal responsibility and how everyone has to pull their own weight, and then they go out of their way to make it impossible to do so.
skittish_derby 10th-Nov-2012 11:35 pm (UTC)
I am in the middle of a FB argument with several random guys who buy into that conservative crap and they don't get this very simple concept. I am feeling so vindicated and refreshed reading these comments though.
aviv_b 10th-Nov-2012 08:51 pm (UTC)
I see that the Republican rebranding has already begun. Makes sense, because there were apparently people who didn't see or didn't care that they were racist, misogynist and homophobic, because it didn't effect them.

Please make sure you let your white male low wage earners know that you are assholes as well. That should help you big time at the next election cycle. You really do want to be the party of rich white guys. Fine by me.
bestdaywelived 11th-Nov-2012 12:40 am (UTC)
Poor people, especially poor white men, are under the belief that they'll be rich one day, so they need to side with Rethugs now in order to protect their future interests.
ebay313 10th-Nov-2012 08:53 pm (UTC)
"Applebee's which has said it won’t hire new workers because of the law"

Really? Like, ever? I fucking hate these people who make over the top claims about how they are going to run their businesses into the ground due to democratic policies. Yeah, I totally believe you will destroy your business that is making you a shit ton of money to make a point -_-
And if you do, I'm not about to cry over that. I can live without Applebee's. Sucks in the short term for employees if you did do that, but in the end that business is just going to go to other restaurants instead who will then expand and hire to keep up with demands.

But all the business owners who are cutting hours- resulting in more employees working fewer hours to avoid paying healthcare- are just a bunch of assholes -_-
And a sign that we just need more and better healthcare reform. Like requiring employers to provide all employees with healthcare, even if they only work 20 minutes a week, or maybe actual universal healthcare.
kaelstra 10th-Nov-2012 11:57 pm (UTC)
lol@ all these companies throwing little childish fits over being told they have to provide health care. God forbid we have any healthy workers and shit!
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