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Trader Joe’s Drop Health Coverage For PT Workers

From the Huffington Post:

Trader Joe’s To Drop Health Coverage For Part-Time Workers Under Obamacare: Memo

September 11, 2013

After extending health care coverage to many of its part-time employees for years, Trader Joe’s has told workers who log fewer than 30 hours a week that they will need to find insurance on the Obamacare exchanges next year, according to a confidential memo from the grocer’s chief executive.

Wow, this is really hitting close to home for the typical wine and cheese Obama supporter. Trader Joe’s is second only to Whole Foods when it comes to where that crowd does their grocery shopping.

In the memo to staff dated Aug. 30, Trader Joe’s CEO Dan Bane said the company will cut part-timers a check for $500 in January and help guide them toward finding a new plan under the Affordable Care Act. The company will continue to offer health coverage to workers who carry 30 hours or more on average

Trader Joe’s has won kudos for offering its health care, dental and vision plans to part-time workers at a reasonable price — a rarity in an industry known for low pay and scant benefits. But with low-wage workers eligible for tax subsidies to buy health insurance next year, the company has apparently calculated that offering medical coverage to part-timers who work 18 hours or more is no longer worth the cost.

"Depending on income you may earn outside of Trader Joe’s" — i.e., another job — "we believe that with the $500 from Trader Joe’s and the tax credits available under the ACA, many of you should be able to obtain health care coverage at very little if any net cost to you," Bane wrote in the memo…

Sure they will.

A current Trader Joe’s worker described the coverage she’ll likely lose as "one of the best parts about the job." (The employee requested anonymity since she isn’t authorized to speak to the media.) She said she pays only $35 per paycheck, or $70 per month, for a plan that generally covers 80 percent of her medical costs, carries a reasonable $500 deductible and includes prescription drug coverage.

Don’t worry. She’ll be able to get a deal like that under Obama-Care. (Not.)

"There are several folks I work with who are there for the insurance as much as anything, mostly folks with young families," she said. "I can say that when I opened and read the letter yesterday my reaction was pure panic, followed quickly by anger." …

Elections have consequences. Even for low information voters.

This article was posted by Steve on Wednesday, September 11th, 2013. Comments are currently closed.

4 Responses to “Trader Joe’s Drop Health Coverage For PT Workers”

  1. untrainable says:

    when I opened and read the letter yesterday my reaction was pure panic, followed quickly by anger

    The question then is who is she angry at? Is she angry at her employer for doing the only thing they can to keep their doors open, or is she angry at Obama and the congress of the United States for creating her problem?

    • captstubby says:

      as the Obama Care Doomsday Clock ticks closer to Midnight, reports like these will ,
      like the Vietnam nightly news “body count and U.S. casualties” numbers,
      become part of the shows lineup.
      if, of course the Media won’t sweep them under the rug.

  2. GetBackJack says:

    I learned a valuable lesson in Business one night at the Fairmont in San Francisco. It’s a longish story, so bear with me ..

    In my murky past I was a gunslinger in the boutique investment firm where I also had the Title of Senior Managing Partner. Young, hip I had what the old guys didn’t, plus I did my effing homework where they relied on connections and Networks. So, when they needed an answer-man to bring along to important meetings, I would take a trip. This time it was to meet with a silver haired criminal with a billion dollar portfolio we wanted a goodly chunk of. Our man was somewhere north of 70 years old, rakishly slim and always expensively turned out. And, like a stand-in from Central Casting, always had a bombshell knockout lady attending him. It was quite the tableau.

    Dinner at the Laurel, in the back, with our man, his major-domo and the babe and .. us. My three partners and me. A $4,000 dinner. I was seated to right of this mafia kingpin look-a-like and I said not a freaking word during drinks and dinner but when the cigars got handed around and coffee service turned out, he turns to me and says, “Son? What’s the first rule of business?”

    Okay. I got this one.

    “To meet the needs of the customer at a profit.”

    KIngpin hit me. I swear to you. Back of my head like Gibbs on NCIS. But harder. You could see my partners lose control of their bladders while mouths flopped open. I was known as a bit of a hot head. Gym rat and (really) amateur boxer, I didn’t rake much guff in those days. A man had just hit me in public and I’m sure my guys had heart stoppage.

    I turned in my seat, levelly took his eyes which turned out to be the right thing to do and he says, “No. The first rule of Business is to stay in business.

    By punctuating his lesson the way he did I have never forgotten that gold nugget of wisdom and actually sent him a handwritten Thank You note later in life.

    Because it’s True

    The first rule of Business is to stay in business. The second rule of business is to meet the needs of the customer at a profit. Do not entertain confusion about which is which.

    Trader Joe’s ownership and senior management apparently understand this.

    The ‘workers’ are in for a rude shock. Well, f**k ’em. It ain’t their capital at risk.

    • Noyzmakr says:

      Okay wait…tell that agian. I zoned out after bombshell…..lol.

      Seriously, It is amazing how many people think businesses are there to supply them with something to do in their spare time, healthcare, childcare, office supplies for their home and a larger paycheck than they deserve.

      I told my brother this week, when he informed me that I was stingy because I insisted he pay me the $ I loaned him, and he’s 2 months late paying me back, that his recently aquired sense of entitlement outweighed the morals and ethics he learned from our parents. (He payed when I threated to “whoop dat azz”.) Violence is the only thing this culture understands.

      This entitlement culture will bring about our demise.

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