Many leaders of corporations argue that maximizing profits through lawful manners is the most important aspect of business even if that means completely or partially reducing the benefits of employees. According to Kim Bhasin of Huffington Post, the CEO of the fast growing retail institution, Forever 21, appears to be an activist of this belief as he shortened the hours of numerous full-time employees and cut “medical, dental, vision, voluntary plans” and paid time off of part-time employees shortly after President Obama passed the “Affordable Care Act”. This act “requires companies who employ 50 or more workers to provide health insurance coverage for their full-time employees or face a penalty”.

Although representatives of Forever 21 state that these cuts weren’t in response to the act, I strongly disagree as their actions have already allowed Forever 21 to avoid the additional costs of Obamacare. I believe this is unfair for employees as many depend on their previously accustomed wages to meet monthly expenses and simply cannot afford to provide their own health plans in this society. On the contrary, Forever 21 has the right to do this as it is not illegal, but simply against my morals and many others.

Will other companies follow Forever 21 in cutting benefits and hours in order to avoid the additional costs of Obamacare or any other regulation to assist employees? Has this already become a trend in the business world?

References:

http://www.huffingtonpost.com/2013/08/16/forever-21-memo_n_3769605.html