U.S. President Barack Obama said against office supply giant Staples Inc. as destabilizing his healthcare improvement law and said large organizations should not use the health insurance subject as an explanation for cutting wages, the news website BuzzFeed reported.
“It’s one thing when you’ve got a mom-and-pop store who can’t afford to provide paid sick leave or health insurance or minimum wage to workers but when I hear large corporations that make billions of dollars in profits trying to blame our interest in providing health insurance as an excuse for cutting back workers’ wages, shame on them,” Obama stated in his discussion with BuzzFeed.
The Affordable Care Act necessitates corporations with more than 50 employees to remunerate for health insurance for individuals who work 30 hours a week or more. Reuters has informed that some industries are keeping employment numbers below 50 or cutting the work week to less than 30 hours to dodge providing employee health insurance.
Staples, the No. 1 U.S. office supplies vendor, has informed its employees not to work more than 25 hours per week, as per Buzzfeed report on Monday.
Staples CEO “Ronald Sargent” carried home $10.8 million in total compensation in 2013. The company stated net profit of $620.1 million in net profit through Feb. 1, 2014.
“There is no reason for an employer who is not currently providing health care to their workers to discourage them from either getting health insurance on the job or being able to avail themselves of the Affordable Care Act,” Obama expressed in his interview on Tuesday.
“I haven’t looked at Staples stock lately or what the compensation of the CEO is, but I suspect that they could well afford to treat their workers favorably and give them some basic financial security, and if they can’t, then they should be willing to allow those workers to get the Affordable Care Act without cutting wages,” Obama said.
Reaction from Staples
Staples report back on Wednesday, saying the company’s policy on part-time employees was more than a decade old and not a reaction to the 2010 health care law, recognized as Obamacare.
“Unfortunately, the president seems not to have all the facts,” Staples spokesman Kirk Saville said in his speech. “It’s unfortunate that the president is criticizing a company that delivers more than 85,000 jobs and is a chief tax payer.”
Approximately 7.5 million people have engaged with 2015 Obamacare health plans through HealthCare.gov with demand increasing as the Feb. 15 enrollment deadline approaches, according to government records.
Staples and No. 2 office retailer Office Depot Inc. publicized past week a $6.3 billion plan to join forces to strive against big box stores and online competitors.
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