Papa John himself, John Schnatter, hates the Affordable Care Act. He said earlier this year that providing healthcare for workers would add as much as 14 cents to the cost of a pizza. Many customers opined that they'd be happy to pay it. This week, now that the election makes implemention of the law a certainty, Papa came back with a new argument: it's likely that fulltime employees will have their hours cut below 30 so they won't have to be covered.
Papa says it will cost as much as $8 million a year to comply with the new law. To put that in context, the company had revenue of $1.2 billion last year, and net income of $55 million. John Schnatter's total compensation last year was $2.7 million and his net worth is estimated at slightly under $300 million. The company is giving away 2 million free pizzas this fall as part of a football promotion.
There's not much I can do to persuade a captain of industry to behave more like a mensch. I could point out that healthy employees are an asset to a company, particularly one in the food service business (who wants sputum with their pepperoni?). I could point out that the US has been the only major nation in the world without some kind of universal health care system. But those arguments probably aren't going to make much of a dent in Papa John's cranium.
What I can do is buy pizza from somebody else. Which I, and many of my friends, have resolved to do.
Thanks for bringing this to my attention. No Papa John's for me!
ReplyDeleteSince I don't buy much pizza, and haven't ever gotten his, my abstention won't make much of an impact, however, I will send an email and certainly won't start buying. :)
ReplyDeleteAgreed. We need to vote with our feet, or mouths, as the case may be. Thanks for giving this issue a little added visibility. I'm so tired of arguing about this topic!
ReplyDeleteI agree completely!
ReplyDeleteThis is the real world of what happens in business. When companies are forced to provide more by gov't regulation, they just pass the cost on to those who buy their products. The cost that every company incurs to meet FDA labeling guidelines, for example, adds a few cents onto every item you buy. It is Econ 101. If it costs more to make, the consumers pay. It is happening all around you, everyday.
ReplyDeleteDyeing -- you are absolutely right! Just as companies are forced to pass along increased costs of materials, electricity, etc. (unless they decide to take some of the hit themselves, in the form of lower executive compensation or lower shareholder return). And customers know they have to pay for increased costs. So what's the big deal? I'm happier to pay an extra 15 cents per pizza if I know it's going toward employee healthcare than if it's going toward big bonuses for the CEO.
ReplyDelete