Starbucks: We Won’t Use Obamacare as Excuse to Cut Benefits

by Christopher Freeburn | August 28, 2013 9:49 am

Starbucks: We Won’t Use Obamacare as Excuse to Cut Benefits

starbucksnyc 300x200  Starbucks: We Won't Use Obamacare as Excuse to Cut Benefits[1]While a number of companies are considering workforce changes in advance of the implementation of President Barack Obama’s Affordable Care Act, the nation’s leading coffee shop chain won’t be one of them[2].

On Monday, Starbucks (SBUX[3]) CEO Howard Schultz told Reuters that the chain will keep its current employee benefits and working hours in place. He said that Starbucks “won’t use the new law as an excuse” to reduce benefits.

Under the Affordable Care Act, businesses with more than 50 employees must provide health care coverage for those who work at least 30 hours a week. The law was originally scheduled to take effect next year. However, the Obama administration recently delayed implementation of the provisions covering businesses[4] until 2015.

A number of companies, including a variety of fast food chains, have begun trimming employee hours[5], in order to lower their numbers of full-time employees since the law was passed.

Shipping giant UPS (UPS[6]) announced this month that it would stop providing insurance to employee spouses who have jobs and are eligible for coverage by their employers[7].

Schultz has long been a political supporter of the president, endorsing him during both his presidential campaigns[8].

Shares of Starbucks edged up slightly in Wednesday morning trading.

Endnotes:
  1. [Image]: http://investorplace.com/wp-content/uploads/2013/07/starbucksnyc.jpg
  2. won’t be one of them: http://www.huffingtonpost.com/2013/08/26/starbucks-worker-benefits-obamacare_n_3818870.html?utm_hp_ref=business
  3. SBUX: http://studio-5.financialcontent.com/investplace/quote?Symbol=SBUX
  4. recently delayed implementation of the provisions covering businesses: http://investorplace.com/investorpolitics/obamacare-businesses-get-1-year-delay-to-provide-coverage/
  5. have begun trimming employee hours: http://investorplace.com/investorpolitics/fast-food-chain-may-only-hire-part-time-workers-due-to-obamacare/
  6. UPS: http://studio-5.financialcontent.com/investplace/quote?Symbol=UPS
  7. who have jobs and are eligible for coverage by their employers: http://investorplace.com/2013/08/ups-to-end-health-benefits-for-employees-working-spouses/
  8. endorsing him during both his presidential campaigns: http://investorplace.com/investorpolitics/starbucks-ceo-nyc-mayor-bloomberg-endorse-obama/

Source URL: http://investorplace.com/2013/08/starbucks-we-wont-use-obamacare-as-excuse-to-cut-benefits/
Short URL: http://invstplc.com/1fqgyse