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Sunday, March 28, 2010

Just Ten Thousand Jobs

AT&T is the latest company to let shareholders know that it will have to take a huge charge; in their case ONE BILLION DOLLARS; because of the passage of ObamaCare.

For AT&T this is probably going to be an annual charges until 2012, that's when the union contract most of their retirees are covered under expires. At that point expect a pretty ugly negotiation. The current employees will be demanding they keep everything, and the retirees are going to be screaming about how much they are going to lose. Sorry retirees, you'll come out on the short end of the stick.

Until 2010 how does a company make up a billion dollars that suddenly vanished? Well, if you have no seniority at AT&T I'd be polishing up that resume. With consumers still not spending increasing prices on their products probably isn't going to happen. That means that cutting staff is the likely way to get that money back.

But don't worry, it's only about 10,000 jobs that they'd have to pare back for the next couple of years. But really, they'll start rehiring. Really, they will. Okay, maybe not, many states have already started calculating the jobs losses that are going to be caused by the ObamaCare bill, and it isn't pretty. Marathon Pundit has a nice list up of the jobs being lost by Sallie Mae, since the health care reform bill also federalized all guaranteed student loans.

One good thing, the bill has $10 billion in it for expansion of the IRS since they will be handling the compliance issues with the individual mandate. So those displaced workers might be able to find jobs as auditors with the IRS.

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