A business newsletter reams out Darden (owners of Olive Garden) for not providing health insurance!

[KamaAina]

http://www.investopedia.com/stock-analysis/062413/dardens-california-fight-huge-mistake-dri-sbux-afce-wfm.aspx

Darden (NYSE: DRI) CEO Clarence Otis is fighting California's passage of Assembly Bill 880, which prevents large companies from cutting workers' hours to avoid paying for insurance under the Affordable Care Act....

While Darden's made some good moves in the last year including acquiring Yard House, its upscale-casual brewpub restaurant, its latest protest is blatantly stupid and an affront to both its employees and shareholders. As long as Darden maintains this position, investing in its shares makes absolutely no sense whatsoever. Here's why....

One of the best reasons for U.S. companies to do business in Canada is universal healthcare. Despite operating costs that are generally higher north of the border and employment laws much stricter than in the U.S., the simple fact that businesses have cost certainty when it comes to health care (excluding cost of drug plans, etc.) allows them to focus on doing business rather than fighting with government bureaucrats and insurance companies. While the Canadian medical system has definite flaws of its own, I've recently had the opportunity to see both systems under a microscope.

And this is what is so puzzling about Darden's fight. California's proposed bill is simply trying to protect those working full-time (more than 30 hours) but paid hourly from having their hours cut. The company would rather see employees who already make minimum wage earn less so it can avoid a penalty of up to $5,500 per employee per year than to do the right thing and provide health insurance to its front-line employees who interact with customers every day. It's shameful morally and extremely short sighted from a business perspective.

[RainDog]

1. k&r n/t

[Fuddnik]

2. In Florida, they're trying to cut the minimum wage for tipped workers.

It's only about $2 an hour, and they want it lower.

[winterpark]

4. In Florida they're trying to get everything they can and screw their workers coming and

going.They helped Theresa Jacobs and her corrupt Orange County commission scuttle a paid sick leave referendum on last novembers ballot. I've boycotted them ever since. Not that I went to their restaurants anyways.

[NJCher]

3. Here's a pic of Clarence Otis, CEO

And this article about him tells how he came from a home where the father was a custodian and the mother a homemaker. He is gifted, which helped fuel his rise to the top. Please note he is also a Stanford-educated lawyer.

Here's the article link, in case you would like to read it:

https://stanfordlawyer.law.stanford.edu/2013/06/clarence-otis-leading-a-casual-dining-%E2%80%A8empire/

So the question is--how quickly did he forget?

The article posted by the OP points out other food and beverage chains that provide insurance. It is not a big deal--for example, it is only 3 per cent of Starbucks' overall revenue. Why, then, is RL trying so hard to get out of it?

The article estimates the costs to RL in CA and this is clearly not a priority item on the "to do" list of making their goal for earnings. It makes me wonder if there is something else to this.


Cher