top Ad Widget

Collapse

Announcement

Collapse
No announcement yet.

Darden tests limiting worker hours as health-care changes loom

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

    Darden tests limiting worker hours as health-care changes loom

    7:15 p.m. EST, October 7, 2012

    In an experiment apparently aimed at keeping down the cost of health-care reform, Orlando-based Darden Restaurants has stopped offering full-time schedules to many hourly workers in at least a few Olive Gardens, Red Lobsters and LongHorn Steakhouses.

    Darden said the test is taking place in "a select number" of restaurants in four markets, including Central Florida, but would not give details. The company said there has been no decision made about expanding it.

    In an emailed statement, Darden said staffing changes are "just one of the many things we are evaluating to help us address the cost implications health care reform will have on our business . There are still many unanswered questions regarding the health care regulations and we simply do not have enough information to make any decisions at this time."

    Analysts say many other companies, including the White Castle hamburger chain, are considering employing fewer full-timers because of key features of the Affordable Care Act scheduled to go into effect in 2014. Under that law, large companies must provide affordable health insurance to employees working an average of at least 30 hours per week.

    If they do not, the companies can face fines of up to $3,000 for each employee who then turns to an exchange — an online marketplace — for insurance.

    "I think a lot of those employers, especially restaurants, are just going to ensure nobody gets scheduled more than 30 hours a week," said Matthew Snook, partner with human-resources consulting company Mercer.

    Darden said its goal at the test restaurants is to keep employees at 28 hours a week.

    Analysts said limiting hours could pose new challenges, including higher turnover and less-qualified workers.

    "It's a real problem for restaurants," said Howard Penney, a restaurant analyst and managing director for Hedgeye Risk Management .
    Darden, the world's largest casual-dining company and one of the nation's 30 largest employers, said it offers health insurance to all its approximately 185,000 employees. Many are offered a limited-benefit plan. That type of coverage is being phased out under health-care changes, which will ban annual limits for most plans.

    About 25 percent of Darden workers are full time, meaning they work more than 30 hours a week. Though employees say Darden already offers traditional health insurance to full-timers, Janney Capital Markets analyst Mark Kalinowski said the cost of providing that could become higher for Darden under the Affordable Care Act. Because that law requires everyone to have health insurance, more workers will likely choose its coverage, Kalinowski said.

    "Even a modest jump up in the amount of employees that decide they want the insurance you're offering could have a meaningful impact on your bottom line," he said.

    Under the system Darden is testing, employees are to be scheduled for no more than 28 hours each week. They can run over that if things get busy, but Darden acknowledged they are not supposed to exceed 30 hours.

    At a new Olive Garden in Stillwater, Okla., former busboy Keaton Hasty said employees were routinely limited to 29 1/2 hours.
    "It was 29 1/2, and they'd kick you out," said Hasty, a college student who now works at a pharmacy.

    "They'd always print off a little slip every day and say who was getting close."

    And Michael Walker said when he applied for a job at a new Olive Garden in Hammond, La., he was told that except for a few "key training positions," only part-time jobs were available for hourly workers.

    "Without having full health care … I don't see that as an option," Walker said. He decided to stick with his current job at another restaurant.

    Darden told analysts last year it would consider changing its mix of part-time and full-time employees to reduce costs.

    Darden has been aggressively keeping labor costs down. It has cut bartenders' pay and required servers to share tips with them. It also has eliminated busboy positions at Red Lobster and reduced the number of servers working each shift at that chain.

    Labor costs as a percentage of sales have dropped steadily from 33.1 percent in fiscal 2010 to 30.8 percent in the most recent quarter.

    By Sandra Pedicini, Orlando Sentinel

    Last edited by AngelinaCat; 10-08-2012, 09:19 AM.
    "To go bravely forward is to invite a miracle."

    "Worry is the darkroom where negatives are formed."

    #2
    I am not surprized, My hubby Boss has told him , They will pay 3000 fine, rather then give 9000 insurance a yr to the employees. They will possibly give employee 1000 yr to buy there own.
    chpt 7 ,5-2009

    Comment


      #3
      this has been going for YEARS in other industries. even at the state and county levels, hours have been cut so the employers don't have to be given insurance or other benefits. everything is for the sake of saving a buck at the cost of whom, the poor working class.

      in as much as this being a principal argument for or against obama-care is simply off the wall and again is nothing "new" for employers attempting to cut costs to the bare bone. these employers should be accountable just as those throwing our jobs overseas to help fill their pockets with more gold. i hope they choke on it.
      8/4/2008 MAKE SURE AND VISIT Tobee's Blogs! http://www.bkforum.com/blog.php?32727-tobee43 and all are welcome to bk forum's Florida State Questions and Answers on BK http://www.bkforum.com/group.php?groupid=9

      Comment


        #4
        Originally posted by Floridagail View Post
        I am not surprized, My hubby Boss has told him , They will pay 3000 fine, rather then give 9000 insurance a yr to the employees. They will possibly give employee 1000 yr to buy there own.
        yes, i have heard that one as well. what the heck kind of health care can anyone buy with that money?
        8/4/2008 MAKE SURE AND VISIT Tobee's Blogs! http://www.bkforum.com/blog.php?32727-tobee43 and all are welcome to bk forum's Florida State Questions and Answers on BK http://www.bkforum.com/group.php?groupid=9

        Comment


          #5
          Originally posted by tobee43 View Post
          this has been going for YEARS in other industries. even at the state and county levels, hours have been cut so the employers don't have to be given insurance or other benefits. everything is for the sake of saving a buck at the cost of whom, the poor working class.
          Part time =

          No health insurance benefits
          No vacation days
          No sick days
          No retirement
          No unemployment insurance problems
          and the list goes on...........
          All information contained in this post is for informational and amusement purposes only.
          Bankruptcy is a process, not an event.......

          Comment


            #6
            Originally posted by frogger View Post
            Part time =

            No health insurance benefits
            No vacation days
            No sick days
            No retirement
            No unemployment insurance problems
            and the list goes on...........
            exactly. again, i think there needs to be some type of accountability or penalty for employers that do that. i know that's not only NOT possible, but it infringes upon wiay to many things to mention. just like i think those that ship our jobs overseas should be taxed to bring the finished products back into this country and hit them HARD! oh, this really gets me going!
            8/4/2008 MAKE SURE AND VISIT Tobee's Blogs! http://www.bkforum.com/blog.php?32727-tobee43 and all are welcome to bk forum's Florida State Questions and Answers on BK http://www.bkforum.com/group.php?groupid=9

            Comment


              #7
              It would be better if companies could simply not offer benefits if they did not wish to, and honestly disclose this fact during salary negotiations. Working in a completely different industry, I discovered that companies would hire you for a so-called "probationary period" which ranges from 90 days to a year (during which you get no benefits) and then when the time is up, lay you off for bullsh** reasons rather than pay the benefits. I would have much rather been able to keep my job, continue working full time, and just not get the benefits, which I have never succeeded in obtaining, anyways.

              I think this plan by Darden Restaurants will backfire, because the only people who want part-time jobs with no benefits are high school and college students, and these people are only looking to the job as a "stepping stone" so they won't invest too much effort and energy into it. The experienced workers, who are actually trying to support themselves and possibly their families on their wages will quit and move on to greener pastures. A job that only gives 28 hours is utterly worthless for trying to live on, yet it takes up too much of your time to be able to hold another job.

              Comment


                #8
                Employers are tired of the escalating costs of health insurance premiums due to tens of million of the uninsured and out of whack medical inflation costs. Would be good to get rid of the health benefits and let people be consumers of their health care.

                Comment


                  #9
                  Originally posted by jacko View Post
                  Employers are tired of the escalating costs of health insurance premiums due to tens of million of the uninsured and out of whack medical inflation costs. Would be good to get rid of the health benefits and let people be consumers of their health care.
                  what a GREAT idea...let's see now....i know at least for many an average take home pay is appox 1500 every two weeks and for one to cover a family of four it's going to cost the average family for ok insurance appox 1k a month. OH!! but who cares, i guess the babies shouldn't get their vacines, that way maybe we can just get rid of many of them before they get to expensive to care for and the elderly shouldn't get care either, i think that would also help....let the senior citizen on SS just give up their food and make certain they don't have enough for a phone, or even a tv...that's would be good too?

                  consumers???? what the heck is a consumer? you mean a human being? i'm done ranting.
                  8/4/2008 MAKE SURE AND VISIT Tobee's Blogs! http://www.bkforum.com/blog.php?32727-tobee43 and all are welcome to bk forum's Florida State Questions and Answers on BK http://www.bkforum.com/group.php?groupid=9

                  Comment


                    #10
                    Health insurance. My favorite subject.
                    That's why we are bk.
                    Who the heck can afford private insurance? Even Obama blithely threw the number 6000/yr around in the debate. As a low cost. Per person. Like it's chump change.
                    For sure SOMETHING needs to happen.

                    Keep On Smilin'

                    Comment


                      #11
                      i know there is no simple answers, just a simple concept....AID the poor and CARE for the elderly. who should fund this? i don't care anymore, i'm getting to the point just do it,! now see that's a great answer...just do it.

                      i know kasier, was at a point, a model of successful health care for the entire county. the nightmares about that place are an entire different story.
                      8/4/2008 MAKE SURE AND VISIT Tobee's Blogs! http://www.bkforum.com/blog.php?32727-tobee43 and all are welcome to bk forum's Florida State Questions and Answers on BK http://www.bkforum.com/group.php?groupid=9

                      Comment


                        #12
                        Change the law so that it requires employers to have to hire you as full-time, and then give the choice of part-time if you so choose...

                        Comment


                          #13
                          Have you ever asked your doctor the cost of today's visit will be? Of course not, my employer is paying for it. Where better off putting everyone on medicare or medicaid with premium paid by employer/employee.

                          Originally posted by tobee43 View Post
                          what a GREAT idea...let's see now....i know at least for many an average take home pay is appox 1500 every two weeks and for one to cover a family of four it's going to cost the average family for ok insurance appox 1k a month. OH!! but who cares, i guess the babies shouldn't get their vacines, that way maybe we can just get rid of many of them before they get to expensive to care for and the elderly shouldn't get care either, i think that would also help....let the senior citizen on SS just give up their food and make certain they don't have enough for a phone, or even a tv...that's would be good too?

                          consumers???? what the heck is a consumer? you mean a human being? i'm done ranting.

                          Comment


                            #14
                            Before this thread gets out of control, let's be careful of our discussion in order that we don't have to lock it.
                            All information contained in this post is for informational and amusement purposes only.
                            Bankruptcy is a process, not an event.......

                            Comment


                              #15
                              Originally posted by jacko View Post
                              Have you ever asked your doctor the cost of today's visit will be? Of course not, my employer is paying for it. Where better off putting everyone on medicare or medicaid with premium paid by employer/employee.
                              unfortunately, i know exactly what it cost. everyday and every dime. we incurred well over 500k this year. no employer is paying our bills.

                              the fighting i had to do to get the care has almost broken my soul. so, i for one know what it's like. no employer is paying for our costs again. our collective 90 years plus working is paying. additionally, we are fortunate to have excellent insurance which now cannot have a cap for catastrophic illness. if not, one of wouldn't have survived this last year.
                              8/4/2008 MAKE SURE AND VISIT Tobee's Blogs! http://www.bkforum.com/blog.php?32727-tobee43 and all are welcome to bk forum's Florida State Questions and Answers on BK http://www.bkforum.com/group.php?groupid=9

                              Comment

                              bottom Ad Widget

                              Collapse
                              Working...
                              X