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Papa John’s Pizza CEO to Cut Hours of Employees; Puts Blame on Obamacare

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Papa Johns CEO Cuts Worker Hours

While supporters for Barack Obama celebrated his win for a second term in the White House, big business reacted negatively to the news. The first was the market dropping more than 200 points following the news of Obama’s victory. Next, massive feedback on social media voiced concerns for companies on Twitter as people speculated that companies will be planning massive layoffs now that Obamacare has become a reality. Finally, with the controversy surrounding Obama’s mandate to make sure employees are provided health insurance to those who work thirty or more hours, Papa John’s, one of America’s largest pizza chain, has formally declared that it will shorten workers hours as a result of expenses related to healthcare.

John Schnatter, the CEO of Papa John’s Pizza, said that workers hours would have to be shorten as a result of the costs of healthcare. Schnatter said, “That’s probably what’s going to happen. It’s common sense. That’s what I call lose-lose.” Other large companies seem to be speaking out in agreement to Schnatter by saying “it’s simply business.”

Papa John’s CEO made his comments on Wednesday evening while inside a small auditorium at Edison State College’s Collier County campus. Back in August, Schnatter ended up making national headlines following his revelation to shareholders that the Affordable Care Act, which is commonly known as Obamacare, would end up with increases of 10-to-14-cents to customers buying a pizza. He told students that, “I got in a bunch of trouble for this. That’s what you do, is you pass on costs. Unfortunately, I don’t think people know what they’re going to pay for this.”

Schnatter supported and did fundraising for Mitt Romney but said he was not “pro or against” the reform law. He did, however, refer to how he would like the government’s involvement in healthcare to be by how the U.S. Postal Service is operated and said, “The worst entity in the world for running the thing is the government.” At the moment, roughly a third of the employees that work at Papa John’s are covered by the company’s health insurance plan even though he has said he would like 100 percent of them to be enrolled. Unfortunately, the rising cost of health insurance has prevented this from happening. “The good news is 100 percent of the population is going to have health insurance. We’re all going to pay for it,” Schnatter said, estimating the new law would cost the business $5 million to $8 million annually. Under the Affordable Care Act, those who work 30 hours or more a week would be mandated to receive health insurance at companies that have more than 50 workers. According to Schnatter, it was more than likely that there would be franchise owners who reduce hours of their employees to avoid having to cover them. He said, “That’s probably what’s going to happen. It’s common sense. That’s what I call lose-lose.”

Papa John’s CEO mixes pizza & politics

The CEO of Papa John’s claims Obamacare could raise prices 11-14 cents a pie. CNN’s Lisa Sylvester reports.

ObamaCare costing Papa John’s more ‘dough’

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  1. ROZ

    November 14, 2012 at 1:42 pm

    Even before The President was re elected this company was doing bogus offers on the internet
    They would advertise one thing then when you tried to get the offer it would never materialize.
    This is not the only company that works this fiasco.
    I am in the process of having nopthing to do with those that are pulling this scam.
    Watch out folks
    Business id business when you are offered one thing and it does not materilize it is not you its a scam
    By papa John

  2. rudolph

    November 12, 2012 at 9:04 pm

    no more papa johns for us!! lil cesars, here we come!! 44 million bucks and he is crying over insurance for the most under paid, over worked men and women? talk about greedy!!!

  3. christa wallin

    November 12, 2012 at 5:53 pm

    Do these CEO’s even think what they are saying?
    No morals or ethics and a screw the employees tactic!

  4. Dalyosha

    November 11, 2012 at 11:43 am

    Well. On the upside, Papa John’s Pizza kind of sucks (I would rate it on equal culinary footing with Domino’s, but with them there’s the whole donating-heavily-to-the-pro lifers,probably also donating heavily to other hateful stuff that goes along with that generally),so I don’t guess I’ll be missing the (NOT) deliciousness of their product. Though I will say that they run those two-for-one specials and things all the time, and I’ve certainly gone there when there are hungry kids and everyone is exhausted and you just want to get dinner over with without a whole lot of whining and spending a pile of money. That said, John Schnatter is an insanely greedy, stupid man (but not surprising;many of those who have made a fortune exploiting others are just like him). In Canada, TWENTY YEARS AGO they were already charging over five bucks a pack for cigarettes, but people didn’t bitch about it because that money guaranteed that every single citizen gets to go to the hospital if they break their leg or get cancer. We are a country of whiny babies. OH NO! 15 cents more per pizza! How will I possibly come up with that? Come on people, suck it up. And if not and Papa John’s goes out of business, and whatshisface has to sell his 22 cars and his castle, I’m sorry, I don’t give a shit. Hopefully his place in the market will be taken by someone who realizes that being fair to his workers is actually, in the long run, the SMART way to go, business wise, for more reasons than I have space to list.

  5. BigApple

    November 11, 2012 at 11:32 am

    Baby having a tantrum. Papa John’s can give away 2 million pizzas but they’ll take it out on their own employees just to make a political dig. That’s pretty irresponsible management–using your company as a tool in personal battles.

    Let’s see…52 million people insured or cheap Papa John’s pizza? Tough decision, tough decision. I might have to go with cheap ass greasy pizza.

  6. matt

    November 11, 2012 at 10:12 am

    I’d boycott, but I stopped buying Papa John’s because the crust tastes like cardboard. “Better ingredients. Better pizza?” I’m not even sure his ingredients are biodegradable.

  7. TG

    November 10, 2012 at 8:39 pm

    Realize first, that the CEO of Papa John’s is a super-rich jack-wagon who lives in castle the size of Luxemburg. Sure, a boycotting Papa John’s is an option, but we must know that a boycott of Papa John’s will not negatively effect it’s CEO personally as much as it will effect his employees. I think If you really like Papa John’s pizza more than that of other pizza places, you can make a statement by paying the extra 14 cents per pie but also sending multiple critical letters to Papa John’s CEO. Maybe you could throw in an extra quarter in with one of the letters suggesting he use it to buy some morals and ethics. For me, I like Domino’s because, unlike Papa John’s, they have good a gluten-free pie that accommodates my wheat allergy. So, F U Wuss John. You’re not my Papa. You’re just a whiny B.

    • Jondan001

      November 11, 2012 at 8:17 am

      Yeah,

      Then there is Pizza Hut, Dominos, Denny’s, Olive Garden, Little Caesars, etc etc.and any other chains that will have to do the same thing. You people on the left never understand economics. Just react with emotion when someone tells you of the truth. Did Obama. No. I and my company have seen a 40% increase in premiums for this scheme of the president to capture 1/6 of the economy. The damn thing is not even in effect yet. .It will go up another 40% before it comes into effect. That will be an increase of 80% in three years. Remember we started where I work with premiums of $400.00 per family. So thank you for your emotional.” I will not buy from them.” and have fun saying to all the businesses you work with when all of their prices go up. Use you head not just your emotion laden heart. Its unbecoming an educated person.

  8. Leathersoup

    November 10, 2012 at 7:44 pm

    Well there’s one business that won’t be seeing me as a client.

  9. rougy

    November 10, 2012 at 6:56 pm

    There’s one Papa John’s here in Boulder that just may go out of business because of his remarks.

    • bill

      November 10, 2012 at 9:40 pm

      New motto: “Shorter Hours, Poorer Workers – Papa John’s””

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2.2 Million More Patient-Victims Of AMCA Data Breach Came Forward

Clinical Pathology Laboratories blamed AMCA for not providing them enough information back in June.

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Photo: Thirteen Of Clubs Follow | Flickr | CC BY-SA 2.0

A month after the medical collection portal owned by the American Medical Collection Agency (AMCA) fell victim to a data breach that has affected more than 20 million of their users from different blood testing laboratories and medical institutions around the country, a new AMCA partner lab came forward and said that their clients were also affected by the data breach.

According to Clinical Pathology Laboratories (CPL), 2.2 million clients may have had their names, addresses, phone numbers, dates of birth, dates of service, balance information, and treatment provider information stolen from the previously reported data breach involving AMCA.

Last month, data were stolen from users of the AMCA payment portal that was used to pay for laboratory fees by more than 20 million victims. These data include their names, phone numbers, dates of birth, home addresses, social security numbers, credit card numbers, and other bank details.

The list of impacted testing laboratories includes Quest Diagnostics (11.9 million patients), LabCorp (7.7 million patients), BioReference Laboratories (Opko Health subsidiary, 422,600 patients), Carecentrix (500,000 patients), and Sunrise Laboratories (undisclosed number of patients).

This time, Clinical Pathology Laboratories (CPL) says that an additional 2.2 million victims of the data breach come from their client list, and another 34,500 patients had their credit card or banking information compromised.

The company blamed the late announcement from CPL to AMCA for not providing them with enough information regarding the breach when it was first disclosed in June.

“At the time of AMCA’s initial notification, AMCA did not provide CPL with enough information for CPL to identify potentially affected patients or confirm the nature of patient information potentially involved in the incident, and CPL’s investigation is on-going,” said the company in a statement.

As of today, it is still unclear whether AMCA nor its partner companies have reached out to their clients to personally notify them about the data breach. Back in June, AMCA first disclosed that only 200,000 clients had their data compromised. However, reports from its partners have confirmed that the victim tally reaches 20 million.

AMCA and partners were slapped with lawsuits

AMCA, Quest, and LabCorp in June were slapped with at least 19 lawsuits concerning the data leak. More than 19 class-suite actions have been filed against the three companies for their involvement in the breach and their inability to fulfill the promise of protecting their clients’ sensitive information.

According to one of the lawyers in one of the lawsuits hurdled against the involved companies, healthcare providers are one of the most susceptible entities, but they have lackluster data protection systems.

“Healthcare companies are especially susceptible to data breaches not only because they aggregate a tremendous amount of important and sensitive data, but also because they tend to be less focused on cybersecurity protection than other industries,” said John Yanchunis of Morgan and Morgan, one of the firms who filed lawsuits against Quest Diagnostics.

Yanchunis said that these companies “know [that] they are at an increased risk and yet have not taken the proper steps to protect their patients’ data.”

AMCA filed for bankruptcy

Amid the data breach that centers the American Medical Collection Agency, the company has filed for bankruptcy and laid off more than 70% of its workforce, as cost in mitigating the impacts of the leak has to lead the company to lose a massive amount of money.

According to the company, the data breach “resulted in enormous expenses that were beyond the ability of the Debtor to bear.”

“Almost immediately upon learning of the breach, LabCorp unqualifiedly and indefinitely terminated its relationship with the Debtor,” the filing reads.

“Soon after, Quest Diagnostics, Conduent, Inc., and CareCentrix, Inc. which together with LabCorp were the Debtor’s four largest clients, stopped sending new work to the Debtor, and all terminated or substantially curtailed their business relationships with the Debtor.”

Cybersecurity experts have estimated that the company most likely to spend at least $400,000 for cyber forensics alone. Add to that the cost of IT support, severe restrictions that were put in place to protect AMCA’s network from further intrusion, looming court cases, and the loss of valuable business partners; it is most likely that the company was driven to the abyss of bankruptcy by the data breach.

Of course, to cut cost, AMCA has also laid off employees and only retained those who are significant in the legal battles it faces, including the lawsuits and its request for bankruptcy. AMCA’s current employee count is down from 113 to 25, which practically cut of 78% of its human resources. Fuchs has asked the court to consider a motion which will ensure the firm’s remaining staff will be paid during the process.

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Treasury Chief Says Crypto Is A “National Security Risk”

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Secretary of the Treasury Steven Mnuchin | 7/25/17 (Official White House Photo by Ricky Harris)

A new jab was thrown against Bitcoin and cryptocurrencies from the US government after statements from the U.S. Treasury Secretary branded the industry as a “national security threat.”

Facebook’s announcement of Libra has brought crypto and blockchain technology in the center stage, as governments around the world have heightened their scrutiny on the alternative financial system that the industry is offering.

Government executives and high ranking officials have raised concerns on the volatility of the technology, and how it is being used by malicious actors to facilitate illegal transactions such as money laundering and illegal drugs.

Now, US Treasury Secretary Steven Mnuchin chimed in the conversation and echoed earlier apprehensions versus Bitcoin and cryptocurrencies. The Secretary warns that Bitcoin, as well as, Facebook’s plans for Libra, pose a “national security issue” for the United States.

“This is indeed a national security issue,” Mnuchin told reporters at a press conference yesterday. “Cryptocurrencies such as bitcoin have been exploited to support billions of dollars of illicit activity like cyber crime, tax evasion, extortion, ransomware, illicit drugs, and human trafficking,” adding that Facebook’s Libra “could be misused by money launderers and terrorist financiers.”

Mnuchin echoed other politicians stance on Facebook’s Libra venture and said that he was “not comfortable” by the idea of it.

Trump vs. Crypto

In a series of tweets on last week, the POTUS said that he is not a “fan” of cryptocurrencies, asserted that America has only one currency, criticized bitcoin, as well as told Facebook that they need a banking charter if they want to launch their newly announced crypto-based money called Libra.

Trump said cryptocurrencies are not money, and “Unregulated Crypto Assets can facilitate unlawful behavior, including drug trade and other illegal activity.”

“If Facebook and other companies want to become a bank, they must seek a new Banking Charter and become subject to all Banking Regulations,” said the president.

Related: Trump Vs. Crypto: Dollar Is The Only Currency Of The USA

According to the President, the dollar is the only currency in America, and Libra, among other cryptocurrencies, are not “real money.”

“We have only one real currency in the USA, and it is stronger than ever, both dependable and reliable. It is by far the most dominant currency anywhere in the World, and it will always stay that way. It is called the United States Dollar!” Trump said in a tweet.

Trump’s anti-crypto stand was agreed upon by Mnuchin saying that “the president does have concerns as it relates to bitcoin and cryptocurrencies—those are legitimate concerns that we have been working on for a long period of time.”

Democrats vs. Crypto

Joining Trump’s army against cryptocurrencies and Facebook’s Libra plans are Democrats from the Senate who recently circulated a draft proposal that bans big tech companies from issuing digital money.

The bill, which was bluntly named as “Keep Big Tech Out Of Finance Act,” circulates among Democrats majority that leads the U.S. House Financial Services Committee, proves that the US government is not joking about its position against Libra and other similar ventures in the future.

Read More: Democrats Move To Ban Big Techs From Issuing Digital Money

According to the proposed bill, no tech company should be allowed to issue any form of financial services. “A large platform utility may not establish, maintain, or operate a digital asset that is intended to be widely used as a medium of exchange, unit of account, store of value, or any other similar function, as defined by the Board of Governors of the Federal Reserve System,” reads a copy of the bill obtained by Z6Mag.

Furthermore, while the bill does not specify any company, it clearly refers to Facebook, and it’s planned blockchain-based currency, Libra. The “large platform utility” is defined as a technology company with “[an] annual global revenue of $25,000,000,000 or more” and one that is “predominately engaged in the business of offering to the public an online marketplace, an exchange, or a platform for connecting third parties.” This definition seems to be crafted to include Facebook rather than exclude other companies.

It is also worth noting that the proposed legislation also prohibits “large platform utilities” from affiliation with “persons who are a financial institution.” This further includes Facebook’s proactive workaround against possible future laws that may prohibit them from owning Libra.

Nonetheless, the bill is still in its earliest phase yet, and many could happen to move forward. For it to become a law, it still has to withstand the possible opposition by Republicans in both the House and the Senate.

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Senator To Facebook’s Libra: ‘Can People Trust You?’

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Photo: BTC Keychain | Flickr | CC BY 2.0

When it comes to Facebook’s Libra, the US government has made one thing clear: they don’t trust the tech giant and its plan to release an alternative financial system based on the highly debated blockchain technology.

In a Senate hearing today, a Facebook executive was grilled by lawmakers in the Senate Banking Committee over the plan to issue its digital currency and its possible effect on the global banking and financial ecosystem.

Facebook announced a month ago that it would roll out a new form of digital money, called Libra, which the tech superpower claims to be a stable coin. Unlike its predecessor, Bitcoin, the Silicon Valley giant claims that Libra is a cryptocurrency backed by real-world money and government certificates, and is also supported by a group of corporations such as Mastercard, Paypal, and VISA.

Libra is set to be available for circulation early next year, but a few weeks following Facebook’s announcement, staunch government opposition has proved difficult for Libra to push through with its most ambitious plan.

“Facebook has said ‘just trust us’” Senator Sherrod Brown, Democrat of Ohio, said at the hearing. “And every time Americans trust you, they seem to get burned.”

Many governments around the world have echoed concerns on how Facebook will handle such an ambitious feat. Many claims that because of the company’s reputation in data security, it is hard to trust Facebook in handling people’s money.

“Trust is primordial”

“Do you really think people should trust Facebook with their hard-earned money?” Senator Brown asked Facebook’s exec, David Marcus.

As a response, Marcus said that the company would do its best to protect people’s money, as well as, prevent fraud and other illegal activities that malicious actors may carry out using Facebook’s Libra.

One of the significant critiques against Facebook’s digital money comes from the fact that cryptocurrencies are not well regulated and criminal element can leverage the technology and use Libra for money laundering and other forms of illegal payments.

“We’ve made mistakes in the past,” Mr. Marcus said. “We have been working, and are working hard to get better.”

“Trust is primordial,” he added.

Keep Big Tech Out Of Finance Act

The Senate hearing comes a day after a copy of a draft proposal in the Senate penned by Democrat senators surfaced that practically bans major tech companies from issuing digital currencies.

Read: [Breaking] Democrats Move To Ban Big Techs From Issuing Digital Money

A new draft proposal for the bill, bluntly named as “Keep Big Tech Out Of Finance Act,” that circulates among Democrats majority that leads the U.S. House Financial Services Committee, proves that the US government is serious about its position against Libra and other similar ventures in the future.

According to the proposed bill, no tech company should be allowed to issue any form of financial services. “A large platform utility may not establish, maintain, or operate a digital asset that is intended to be widely used as a medium of exchange, unit of account, store of value, or any other similar function, as defined by the Board of Governors of the Federal Reserve System,” reads a copy of the bill obtained by Z6Mag.

Global fiscal and legislative resistance vs. Libra

Furthermore, while the bill does not specify any company, it clearly refers to Facebook, and it’s planned blockchain-based currency, Libra. The “large platform utility” is defined as a technology company with “[an] annual global revenue of $25,000,000,000 or more” and one that is “predominately engaged in the business of offering to the public an online marketplace, an exchange, or a platform for connecting third parties.” This definition seems to be crafted to include Facebook rather than exclude other companies.

It is also worth noting that the proposed legislation also prohibits “large platform utilities” from affiliation with “persons who are a financial institution.” This further includes Facebook’s proactive workaround against possible future laws that may prohibit them from owning Libra.

European officials have also expressed concern regarding Libra, citing that the system, if widely adopted, could shake the global economy and rival national banks. French Finance Minister Bruno Le Maire sent a letter to officials from the G7 and International Monetary Fund calling for a group to examine Libra’s impact on the global financial system. Le Maire said that Libra must not become a “sovereign currency,” while a German politician noted Facebook’s potential to become a “shadow bank” to the global financial system.

Aside from European officials, Japanese lawmakers are also investigating the possible impact of Facebook’s Libra in global banking and financial systems ahead of the G-7 Meeting of the country’s finance ministry to be held in France this week.

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