Monday, November 3, 2014

Temporary Employment

There is a trend occurring in the construction trades that will evolve in a short amount of time due directly to Obama care.That trend is for use of temporary employees. Constant use of temporary employees is illegal but most businesses use it year after year. The only company I have heard of that got hit with the law is General Electric. I can't find the reference online but they were hit hard by a judge with back pay and fines. The trend will become permanent meaning most companies and mainly large companies will only use temporary employees as workers and having the temp company handle benefits reducing the companies reliance on internal personal department = reduced over head cost. Most small business that can't afford health insurance and don't know about temp employee companies will not last long because they can not afford to attract employees because of not being able to offer insurance. This is the "mom and pop" operations. In time larger companies will also use this temp service when they need new help and not hire regular employees. This goes on now but will get to a point were companies in general will not have employees of there own but solely use temporary help as workers.I don't know if this is good or bad but in the construction industry it makes sense to use companies that have a "pool" of trained personal to use when you have work and relieve the stress on companies to find work for their staff and laying off people, and the costs associated with the both. Again what will occur is the business itself will only be a management company with minimum employees. With the trades this will be good for the worker and not a negative. Supply and demand will dictate pay and not the current system of pay raises every year as an automatic. The reason this will be good for the next 20 years is that "the baby boomer" generation is retiring and the supply of available workers in the trades will dry up. The pay increase curve will rise with a supply and demand model and you will make more than the yearly raise model. At about 20 years the word will get out to the general public that its worth working hard for a living again, the current rumor is that its not worth working hard for a living and can make the same or more out side of the construction trades. This is currently reversing. President Obama has ignored a health care system that works for all citizens which is done in Canada. in Canada every body is covered regardless of employment status, sounds like the correct way don't it? Small businesses can not afford to pay for health insurance for it's employees. Obama care forces the working class to seek out employers who offer health care insurance, other wise be subject to fines for not having it. You don't hear large companies complaining about Obama as president because they are fully aware of this trend with regard to small businesses suffering in the long term directly because of Obama care. The local plumber or electrician will cease to exist like what Walmart and Target did to the local retailer and what Home Depot did to the local saw mill. Is this a bad thing? It depends on your view, personally I like shopping at Walmart because I know I'm not being ripped off. Recently I went to a local retailer for a charger for my laptop that didn't work. I was happy with myself because I was going to shop at a small retailer here in Manchester, NH and support local mom and pop operation. Well they wanted $30.00 bux usd used and $40.00 for a new one. Generally you half a new price in the used market so I didn't buy it. I went to Best Buy and they wanted $44.00 bux. I went on Ebay and guess what? I purchased one for $9.95 usd with free shipping all I had to do was wait 3 days for it's arrival. Stay tuned....

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