When William J. Casey was a young attorney during the Great Depression, he learned an important lesson.
Jobs were hard to come by, so Casey thought himself lucky to land one at the Tax Research Institute of America in New York.
His task was to closely read New Deal legislation and write reports explaining it to corporate chieftains.
At first, he thought they wanted detailed legal commentary on the meaning of the new legislation.
But then he quickly learned a blunt truth: Businessmen neither understood nor welcomed Franklin D. Roosevelt’s efforts to reform American capitalism. And they didn’t want legal commentary.
Instead, they wanted to know: “What must we do to achieve minimum compliance with the law?”
In short: How do we get by FDR’s new programs?
Fifty years later, Casey would bring a similar mindset to his duties as director of the Central Intelligence Agency for President Ronald Reagan.
William J. Casey
Congress had banned the Reagan administration from funding the “Contras,” the Right-wing death squads of Nicaragua.
Casey gave lip service to the demands of Congress. But privately, he and Marine Lieutenant Colonel Oliver North set up an “off-the-shelf” operation to overthrow the leftist government of Daniel Ortega.
For three years the operation stayed secret. Then it blew up in November, 1986, as the Iran-Contra scandal.
But the “Casey Doctrine” of minimum compliance didn’t die with Casey (who expired of a brain tumor in 1987).
It’s very much alive among the American business community as President Barack Obama seeks to give medical coverage to all Americans, and not simply the ultra-wealthy.
The single most important provision of the Affordable Care Act (ACA)–-better known as Obamacare–-requires large businesses to provide insurance to full-time employees who work more than 30 hours a week.
For part-time employees, who work fewer than 30 hours, a company isn’t penalized for failing to provide health insurance coverage.
Obama prides himself on being a tough-minded practitioner of “Chicago politics.” So it’s easy to assume that he took the “Casey Doctrine” into account when he shepherded the ACA through Congress.
But he didn’t.
The result was predictable. And its consequences are daily becoming more clear.
Employers feel motivated to move fulltime workers into part-time positions–-and thus avoid
- providing their employees with medical insurance and
- a fine for non-compliance with the law.
Some employers have openly shown their contempt for President Obama–-and the idea that employers actually have an obligation to those who make their profits a reality.
The White Castle hamburger chain is considering hiring only part-time workers in the future to escape its obligations under Obamacare.
No less than Jamie Richardson, its vice president, admitted this in an interview.
“If we were to keep our health insurance program exactly like it is with no changes, every forecast we’ve looked at has indicated our costs will go up 24%.”
Richardson claimed the profit per employee in restaurants is only $750 per year. So, as he sees it, giving health insurance to all employees who work over 30 hours isn’t feasible.
Nor is Richardson the only corporate executive determined to shirk his responsibility to his employees.
John Schnatter, CEO of Papa John’s Pizza, has been quoted as saying:
- The prices of his pizzas will go up–by 11 to 14 cents per pizza, or 15 to 20 cents per order; and
- He will pass along these costs to his customers.
“If Obamacare is in fact not repealed,” Schnatter told Politico, “we will find tactics to shallow out any Obamacare costs and core strategies to pass that cost onto consumers in order to protect our shareholders’ best interests.”
Consider:
- Papa John’s is the third-largest pizza takeout and delivery chain in the United States.
- Its 2012 revenues were $318.6 million, an 8.5 percent increase from 2011 revenues of $293.5 million.
- Its 2012 net income was $14.8 million, compared to its 2012 net income of $12.1 million.
Had Obama been the serious student of Realpolitick that he claims to be, he would have predicted that most businesses would seek to avoid compliance with his law.
To counter that, he need only have required all employers to provide insurance coverage for all of their employees—regardless of their fulltime or part-time status.
This, in turn, would have produced two substantial benefits:
- All employees would have been able to obtain medical coverage; and
- Employers would have been encouraged to provide fulltime positions rather than part-time ones; they would feel: “Since I’m paying for fulltime insurance coverage, I should be getting fulltime work in return.”
The “Casey Doctrine” needs to be kept constantly in mind when reformers try to protect Americans from predatory employers.
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A LABOR DAY REMINDER: CEO GREED VS. EMPLOYEES’ NEED
In Bureaucracy, Business, History, Law, Politics, Social commentary on September 7, 2015 at 12:57 amJohn Schnatter, the CEO of Papa John’s Pizza, doesn’t like the Affordable Care Act (ACA), better known as Obamacare.
And Schnatter bluntly warned his employees: When the Act took effect, Papa John’s Pizza would change in two ways.
First, it would be forced to do something it hadn’t done since its founding in 1984: Offer healthcare coverage to its 16,5000 employees or pay a penalty to the government.
Second, it would raise the prices of its pizzas.
John Schnatter
How high would they go up?
By as much as eleven to fourteen cents price increase per pizza, or fifteen to twenty cents per order!
And Schnatter made it clear: He wasn’t going to take this lying down. He was determined to pass along those costs to his customers.
“If Obamacare is in fact not repealed,” Schnatter told Politico, “we will find tactics to shallow out any Obamacare costs and core strategies to pass that cost onto consumers in order to protect our shareholders’ best interests.”
After all, why should a multi-million-dollar company show any concern for those who make its profits a reality?
Consider:
Click here: Papa John’s Announces Fourth Quarter and Full Year 2014 Results (NASDAQ:PZZA)
Nor should anyone expect Schnatter to take a pay cut, just so his employees can obtain medical care when they need it.
Schnatter’s total calculated compensation for 2014 came to $3,456,146.
Click here: John H. Schnatter: Executive Profile & Biography – Businessweek
“We’re not supportive of Obamacare, like most businesses in our industry,” Schnatter–a supporter of Republican Presidential candidate Mitt Romney–admitted in a 2012 interview with Politico.
To demonstrate his opposition to providing medical insurance for all Americans, Schnatter hosted a fundraising event for Mitt Romney at his own Louisville, Kentucky mansion in May, 2012.
The luxurious setting for the fundraiser gave Romney a rush of pure, plutocratic ecstasy.
“What a home this is,” gushed Romney. “What grounds these are, the pool, the golf course.
“You know, if a Democrat were here he’d look around and say no one should live like this. Republicans come here and say everyone should live like this.”
John Schnatter’s estate
Of course, Romney conveniently ignored a brutally ugly fact:
For the vast majority of Papa John’s minimum-wage-earning employees–many of them working only part-time–the odds of their owning a comparable estate are non-existent.
In a typical demonstration of corporate thinking, Judy Nichols, a Papa John’s franchise owner in Beaumont, Texas, said:
“I have two options, I can stop offering coverage and pay the $2,000 fine, or I could keep my number of staff under 50 so the mandate doesn’t apply,” she told Legal Newsline.
In short: Defy the law, and employee helathcare needs be damned.
In fact, that’s exactly what Schnatter announced he would do: Reduce his workers’ hours–since Obamacare mandates that only employees working more than 30 hours per week are covered under their employers’ health insurance plan.
Nichols claimed that the the law might cost her $20,000 to $30,000 in taxes: “Obamacare is making me think about cutting jobs instead,” she said.
Translation: If you force me to behave responsibly, I’ll just have to take it out on millions of willing-to-work Americans.
So how can America cope with behavior that destroys not only lives but the economy as well?
By passing–and vigorously enforcing–a nationwide Employers Responsibility Act.
Among its provisions:
Employers would be required to provide full medical and pension benefits for all employees, regardless of their full-time or part-time status.
Increasingly, employers are replacing full-time workers with part-time ones—solely to avoid paying medical and pension benefits.
Requiring employers to act humanely and responsibly toward all their employees would encourage them to provide full-time positions—and hasten the death of this greed-based practice.
The seeking of “economic incentives” by companies in return for moving to or remaining in cities/states would be strictly forbidden.
Such “economic incentives” usually:
Employers who continue to make such overtures would be prosecuted for attempted bribery or extortion:
This would
It’s past time for America to protect employees who work for a living from CEOs who simply take credit for the work those employees do.
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