Health Scare for Small Businesses Essay Paper

Employment Law

First Quote

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“We are poised this year to more than double or even triple business,” says Ms Turley. Ms Turley is a 58-year-old lady who has a company which makes clothes which are licensed with colleges and football team logos and colours. “And then this happened…. We have to find another way to get there.” (Maltby, 2013)

Context of the quote

Penalties may be imposed on small businesses when healthcare law would thrust in 2014 with an employer mandate provision. According to the new rule fifty or more employees of all businesses should be provided with insurance.

Elizabeth Turley recruited a number of employees for her apparel Co. Meesh & Mia Corp, throughout her two-plus years of business, in order to keep up with the rapid growth. For this year, Elizabeth has different plans. Instead of recruiting more employees, she has decided to outsource tasks, like product and marketing development to independent contractors.

The reason behind this decision is probably the number of employees in Meesh & Mia which are about to reach fifty. If this threshold is reached then the company would have to provide health coverage to the employees to meet the standards of the government. And if these standards are not met then penalties can be imposed upon the company.

Second quote

Michael Peterson says, “you have an agency that comes in and is pretty aggressive on these issues, but isn’t really clear on drawing lines,” (Trottman, 2011). Michael Peterson is the Vice president of HR policy Association. This association is a trade group of all human resource executives. According to Michael Peterson, the negative online postings would damage the reputation of the company in near future; therefore a better guidance is needed by the agency.

Context of the quote

Those workers or are fired because of viciousness against the employers on the social networking sites, are fighting back by making the use of a decade old labour law. This decade old labour law is a new front in the gloomy battle over the online comments of the workers.

From the time this Twitter and Facebook have come into being, the Employers believe that it is their right to fire those employees who post hostile comments regarding their employers on these sites.

WSJ’s Melanie Trottman has reported on the National Labor Relations Act. This act protects the employees under many circumstances i.e. when they condemn their employers in public and on social networking sites.

However, recently, the workers have tried to come up with the solution for their job related problems by employing the law which, in the first place, give an impetus to the U.S. labour campaign- the National Labor Relations Act of 1935. According to this law, those working in the private sector have the right to protest about their safety, salary and the working factors. It does not directly deal with simple complaints.

As per the National Labor Relations Board, the inappropriate activity concerning social media policies and practices has led to accusations by the workers against a saloon, Wal-Mart Stores Inc. And a BMW franchise. National Labor Relations Board is an agency operating on a federal level which responsible for law enforcement and determines whether the grievances of the employees are justified.

Third Quote

Mr. Pierron stated that “The objective of creating conditions to fight insecurity and boost employment has been achieved,” (Horobin, 2013).

Context of the quote

On Friday, the French business unions unanimously approved of the wide-ranging changes in the labour laws. This law is the essential part of President Francois Hollande’s struggle to put an end to the increasing level of unemployment and reinstating France’s competitive benefit.

However, after the arguing for months, only three out of the five labour unions involved in the discussion actually supported the agreement. Due to this Mr. Hollande lost the undisputed backing which would have given his political career a great push.

Mr Hollande remarked that no negotiation in the past 30 years has been so successful as this one has. This was not less than a success in social dialogue.

Next the text will be presented before the Parliament where Mr. Hollande has supporters.

Delegates will still have to go back to their respective union to eventually sign on the settlement. A positive judgement will be given by a moderate CFDDT union mediator Patrick Pierron and Joseph Thouvenel who is a representative for the Christian CFTC union whereas the CFE-CGC union negotiator Marie-Francoise Leflon says that she had contributed to a more sensible settlement.

Mr. Pierron said, “The objective of creating conditions to fight insecurity and boost employment has been achieved.”

The mediator for the employers’ group Medef, Patrick Bernasconi said, “We have met the challenge of getting extremely positive things for business and new points for employees.”

The two extremist unions CGT and the FO has stated that they will not sign the agreement.

Like the German businesses have worked during the time of international economic meltdown to make their survival certain, likewise, as per the terms of the settlement, business associations achieved s success which will permit the companies to reduce salaries and working hours during the tough period. The workers will have the advantage of getting their jobs secured at the time of flexible hours and salaries.

Forth Quote

Mr. Russell said, “The tendency is to say, ‘Let me fill this position with a 40-hour-a-week employee. I think we have to think differently” (Jargon, 2012).

Context of the quote

As a result of the refurbishment of the health-care, some companies providing low salaries are concentrating on recruiting part-time workers rather than fill-time ones so that they can minimise the requirements of the law that large organizations have to either pay a fee or give health insurance to its workers.

Many hotels, retailers and restaurants have already begun or are in a process to reduce the schedules of hourly workers to less than 30 hours per week. This is the starting point at which huge companies in 2014 would have to provide a smallest possible level of insurance to their employees or pay a fine of $2,000 per worker.

This change marks one of the most important moves by the companies to avoid the conditions set by the health-care law. The continuance of this trend will depend on the results of Tuesday’s election. It has been vowed by the Republican presidential nominee Mitt Romney that though he would face difficulties in toppling the Affordable Case, he would still do it.

If President Barack Obama is re-elected he would definitely implement the law of 2010.

Chief Executive Chris Russell says that after the episode of the Supreme Court’s support for the refurbishment of health-care, Pillar Hotels & Resorts has, this summer, started concentrating on recruiting part-time employees amongst a total of 5,500 employees. The organization comprises of 210 franchise hotels bearing names like Holiday Inns, Fairfield Inns, Sheraton, and Hampton Inns.

Fifth Quote

Nelson Lichtenstein, who works in the University of California at Santa Barbara as labour historian, said “The decline in membership generates a weaker political position, and that leads to a situation where membership declines even more.”

Context of the quote

The federal data reveals the sudden drop in the number of employees belonging to the respective work unions of their organizations. This is the biggest decline ever since World War II. The majority number of such turnovers is from public sector organizations.

As per the statistics, approximately 2.8% of members left their respective unions. This percentage accounts for around 400,000 people. Majority of these belonged to public sector. The major decrease in the number of members was observed last year when the percentage dropped from 11.8% (2011) to 11.3% (2012).

Public sector organizations have always been the biggest supporter of workplace union formation as compared to private ones. However, last year gave a tough time to the public companies as well as the private ones. Then membership rate in unions of public companies came to 35.9% (2012) from 37% (2011). Whereas, in case of private sector companies, the rate showed less fluctuation and came to 6.6% from 6.9%.

This drastic decline in number of members is justified by the officials of unions. According to them, it is due to state driven arguments’ regarding collective bargain and traditional federal laws for labours which has resulted in such decrease in number of members.

Some people say that unions are just adding up the organization’s costs. They are not a source of value addition; neither to the workplace nor to the employees. According to James Sherk from conservative Heritage Foundation, a policy analyst in labour economics at Heritage Foundation, the aged employees of the organization are one of the many reasons for the expected failure of the current business model and this trend seems to stay here for quite long.

According to some labour experts, labour’s strength can be negatively affected due to current deteriorating condition of union rights in few countries. However, democracy seems to be fully supported by the public sector unions.


Maltby, E. (2013). A Health Scare for Small Businesses. Available at:

Trottman, M. (2011). For Angry Employees, Legal Cover for Rants. Available at:

Horobin, W. (2013). French Employers Win New Labor Flexibility. Available at:

Jargon, J, Radnofsky, L. And Berzon, A. (2012). Health-Care Law Spurs a Shift to Part-Time Workers. Available at:

Trottman, M and Maher, K. (2013). Organized Labour Loses Members. Available at:

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