Thanks to the lobbying efforts of the National Association of Remodeling Industry (NARI), the National Association of Home Builders (NAHB) and others, the unfair burden on small construction companies was removed from the Healthcare bill. For now, the government won't be forcing small construction businesses to have to lay off their employees or face bankruptcy because they could not afford the mandate to provide health insurance or pay fines if they have five or more employees (for all other industries it is 50 employees). However, Senator Merkley's spokesperson Julie Edwards said the amendment could reemerge as a stand alone bill or be reattached to another bill.
(originally posted January 12, 2010)
Putting Mom & Pop Out of Business
That's what will happen to small construction companies if the Senate's Version of the Health Care Bill becomes law (H.R. 3590)!
On Christmas Eve, behind closed doors in a back room deal, the influence of Big Union Lobbyists succeeded in tacking on a mandate to burden small construction companies in the Senate's version of healthcare as proposed by Sen. Jeff Merkley (D-Ore.).
All other companies with 50 or more employees will be asked to comply with all the bill's mandates or pay penalties. Not so if you are in a construction related company. If you have only FIVE employees, or 250,000 annual payroll, you will be required to comply or pay fines which will devastate the industry. The National Association of the Remodeling Industry surveyed its members, and found 96% oppose the new provision. They believe that if the amendment is kept, thousands of remodeling and constructions firms will face bankruptcy.
It is an unprecedented assault on a single industry that is made up of mostly small businesses. In response to historic losses in which companies volume dropped upwards of 60% causing layoffs or closures, the unemployment rate for construction workers is 22%. Now they want unemployment to increase? As a remodeling business owner, I am sure that will happen.
Our company has always offered group health insurance to our employees since we first hired a crew in 2001. Because we are small, our premium is high compared to a large company, so we can only afford to help with 50% of the premium. Some of the employees are covered though their spouse's work and opt out of our plan, so that makes it doable. This labor burden increases our costs and pricing and we do lose some sales to companies who do not offer their employees insurance, but we do what we can to keep offering a health plan because it is the right thing to do.
If this is passed with this final hour addition, the only way for us to survive would be for us to cut back to 3 employees. Those that would be laid off will lose their health insurance benefit they currently have! Does that make sense???
As Mom & Pop would say, "Play fair!"
Please go here to tell your elected representative in Washington D.C. that you do NOT think it is right for the industry of construction to be singled out. All companies should have the same requirement of having 50 employees to be mandated to comply with all requirements, if that is what the law will be.
If you are a small business owner, you may want to click here to join the National Federation of Independent Businesses to be better informed, and get involved.
Thank you for taking the time to let your representative know you don't think it is right to single out the construction industry and force many companies into bankruptcy, causing many people to lose their jobs.
I have been saying all along, we need to make our voices heard. Sometimes we think we it won't effect us, but who are we kidding? When it effects our fellow Americans, it effects us.
ReplyDeleteKeith
This was a very informative post. Thx Janet!
ReplyDelete