Micron is laying off its American workers because it cannot afford Obamacare. Apparently Microns CEO isnt cozy enough with Obama to get a waiver.
The day started with an American CEO ringing the opening bell at the NASDAQ in New York. And it ended with that same CEO announcing plans to cut his companys American workforce.
It was Friday August 9th. Mark Durcan CEO of the global Micron Technology Inc. had traveled from the companys headquarters in Boise Idaho to visit the NASDAQ trading epicenter in Times Square. The company has been enjoying good news over the past several months including a rise in its stock value additional contracts to sell its computer memory systems to additional tablet manufacturers and its recent acquisition of the Hiroshima Japan based Elpida Corporation. Ringing the bell at the stock exchange seemed like a great way to cap-off a string of celebration-worthy events.
But late in the day on August 7th and continuing through August 8th an internal memo from Mr. Durcan began circulating to Microns American-based employees (the company has operations throughout the North American continent including the state of California Colorado Idaho Virginia Minnesota Texas and Utah). In announcing what was described as a workforce optimization" plan Durcan noted to employees that steps like these to improve efficiency and competitiveness are difficult but our business is heading in a positive direction and we must build the foundation for a bright future. Success will not be achieved without some tough decisions and this is one of those."
The steps" he announced amounted to an across-the-board reduction in Microns workforce. But this wasnt aimed at Micron employees worldwide no its a reduction in the companys American workforce specifically. Durcan was offering a generous severance package to those who voluntarily wanted to leave and if the companys American workforce reduction goals arent met within a specified time frame then official layoffs" will be the next step.
Micron by the way is a great American business success story. Begun at the dawn of the new computer revolution" era in 1978 with among others some very young and eager graduates of hometown Boise State University it would eventually be infused with investment capital from an billionaire Idaho potato grower named J.R. Simplott on its way to becoming a publicly traded global enterprise.
Like other players in the highly competitive computer memory industry Micron has had its ups and downs over the decades. Job layoffs have happened before within the company and twice last decade during the post Nine-Eleven" recession of 2001 and during the great recession" of 2009 former CEO Steve Appleton chose to sacrifice his entire salary as a means of helping restore profits during lean times. Through it all the company has remained charitable as its logo appears on engineering and computer science buildings at college and university campuses as a sponsor of tech education" throughout its home state of Idaho.
But this time Microns unfortunate news" is different. The company isnt merely reducing its workforce. Its cutting jobs in America even as it will soon be expanding its work in Japan and Singapore. One can imagine that President Barack Obama and lots of disingenuous members of Congress are already prepared with talking points to bash the un-patriotic" Micron and vow to crackdown" (whatever that means) on corporate America.
But Americans need to wake up and realize that its the policies of these disingenuous politicians that are making the United States a lousy place to do business. The U.S. has the highest corporate taxation rate of any country in the world right now. When Japan lowered its corporate income tax rate from 39.5 percent to 37 percent in 2012 it went from the highest rate to the second highest and now the Japanese government is talking about lowering it even further.
And then of course theres Obamacare. The Presidents signature policy initiative is driving insurance costs sky-high and most of that burden is being carried by individual American workers and their employers. Companies whose CEOs are on good terms" with President Obama companies like McDonalds and GE Corporation for example have gotten themselves exempted from the Obamacare horrors. Micron hasnt received our dear Presidents blessing apparently and so must make some moves to protect the interests of its investors.
Do Americans want a thriving economy that produces career opportunities and productive lifestyles? Or do we simply want to continue in our fantasy-based pattern of believing politicians promises of free" things as we pay no attention to their actual policies?
The choice is ours to make.