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November 14, 2012 Print

ObamaCare Forces Supporter’s Company To Lay Off Workers

by Bethany Monk

A corporation whose part owner gave $2 million to a group committed to re-electing President Obama announced this week that it will be forced to lay off more than 1,000 employees in lieu of the financial hardship imposed by the president’s signature health care law.

Stryker Corporation, a medical device and equipment manufacturer, will cut 5 percent of its global workforce, resulting in an estimated 1,170 layoffs, according to Freedom Works, a governmental watchdog group in Washington, D.C.

Signed into law in March 2010, ObamaCare requires businesses to provide government-defined health care plans to employees who work 30 hours or more each week. Those who fail to do so face fines of up to $3,000 per employee.

ObamaCare includes 18 new taxes and penalties that are estimated to bring  $836 billion to the federal government over the next 10 years, said Alyene Senger, a research assistant at The Heritage Foundation.

“As businesses are affected by these taxes they are going to either — like you see with Stryker — lay people off, or they are going to turn full-time workers into part-time workers so that they don’t have to pay the employer mandate,” she said.

Stryker Corporation is a Fortune 500 company with 21,000 employees worldwide; the company sells $8.3 million worth of hospital beds, artificial joints, medical cameras and medical software each year.

Jon Stryker, grandson of the company’s founder, and a minority shareholder, gave $2 million to the Priorities USA Action super PAC, a pro-Obama organization. He also donated $66,000 directly to Obama and the Democratic Party, according to Breitbart.com. Stryker’s grandfather was the surgeon who invented mobile hospital beds.

Stryker also gave millions before the election to help Democratic candidates in Michigan, his home state, according to Breitbart. In addition, he donated almost $250 million to create the Arcus Foundation, which supports homosexual and transgender activism, as well as great ape conservation, according to the foundation’s website.

“His corporation will have to pay the 2.3 percent excise tax on medical devices,” Senger said. “That’s just one of the many taxes in the law, and his corporation is going to have to find a way to pay for it.”

Next month, Stryker Corp. plans to close its facility in Orchard Park, N.Y.,  which will cut 96 jobs.

According to Freedom Works, more than a dozen companies are facing layoffs or the possibility of having to reduce employees’ hours to help combat the effects of ObamaCare.

“ObamaCare is just bad health care policy, whether it’s violating religious liberty through the HHS mandate or forcing employers and individuals to purchase health insurance,” Senger said. “America needs real health reform that will take our country in a patient-centered direction.”

Learn more about other businesses facing layoffs due to ObamaCare.

 Read the Alliance Defending Freedom’s ObamaCare fact sheet.