Stryker Corportation Confirms ObamaCare Layoffs

November 21, 2012
By

Stryker Corp. confirmed this week that the company will lay off about 1,000 employees as a result of a 2.3 percent excise tax on medical devices

DENVER–Say this for Colorado Democratic super-donor Pat Stryker, she isn’t letting her family’s financial interests get in the way of her political beliefs.

Stryker Corp., which manufactures medical devices, confirmed this week that the company will lay off about 1,000 employees as a result of a 2.3 percent excise tax on medical devices starting in 2013 under the Affordable Care Act, known as Obamacare.

Stryker Corp. was founded by surgeon Homer Stryker, Pat’s grandfather, from whom she inherited her estimated $1.4 billion fortune. Stryker has plowed millions into Democratic campaigns on the state and national level, including 2012 donations to the Obama reelection effort and a pro-Obama Super PAC.

Her support for President Obama came despite pre-election warnings that Stryker Corp. would be forced to reduce its workforce in response to the Affordable Care Act. Although Stryker and her siblings own nearly 30 percent of the company, the Fort Collins philanthropist is not involved in running the firm.

“Remember, she didn’t build the company,” said Independence Institute president Jon Caldara, a staunch critic of Obamacare. “She must not understand that government cripples business . . . If she cared about employees, she wouldn’t give to the left.”

The company announced in November 2011 that it would lay off 5 percent of its 20,000 global employees, and issued 107 layoff notices in June in compliance with federal law that requires large companies to give workers six months’ notice before termination.

In a statement Tuesday, Stryker President and CEO Kevin A. Lobo made it clear that the layoffs were directly related to the increased costs on business imposed by the Affordable Care Act, which is scheduled to be fully implemented in 2014.

“Stryker remains significantly concerned with the upcoming medical device excise tax and its negative impact on jobs and innovation, and will continue to work with Congress to try to repeal the tax,” said Lobo.

The company “expects to owe approximately $100 million in the first year alone, equating to over 20 percent of our annual, global R&D investments,” said Lobo.

“We would rather put this money towards jobs, innovation, clinical research and priorities that will create value-added medical technology for patients while helping us partner with hospitals to deliver cost-effective solutions,” he said.

Supporters of Obamacare argue that all Americans will benefit from access to free or low-cost medical care, while critics argue that the program will result in an enormous government expansion and  less prosperous economy.

The 107 termination notices were issued in June to workers in the company’s facilities in Orchard Park and West Seneca, N.Y. Stryker Corp. is headquartered in Kalamazoo, Mich., but no additional layoffs had been announced as of Monday, according to the Kalamazoo Gazette.

In August 2012, Pat Stryker donated $25,000 to the America Votes Action Fund, a pro-Obama Super PAC. She contributed $140,100 to Democratic candidates, including Obama, during the 2012 election cycle, according to the Center for Responsive Politics.

Pat Stryker isn’t the only member of the family involved in liberal politics. Her brother Jon Stryker donated $2 million to the Priorities USA Action Super PAC and $66,000 to the Obama campaign and the Democratic Party during the last election cycle, according to a report Monday by FoxNews.

This post was written by

Valerie Richardson – who has written posts on The Colorado Observer.

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39 Responses to Stryker Corportation Confirms ObamaCare Layoffs

  1. Hoilden
    November 21, 2012 at 4:40 pm

    Having a lot of money does not mean you will have common sense.

  2. mtnrunner2
    November 21, 2012 at 6:52 pm

    Just shows that not everyone realizes what is good for them (and for the country), even when it’s right there in front of them. Such is the power of a perceived (and incorrect) moral high ground.

    • michael
      March 14, 2013 at 7:20 pm

      She doesn’t care because she is extraordinarily wealthy.

  3. Drew
    November 21, 2012 at 9:41 pm

    So a $50,000 X-Ray machine is going to cost $51,150.00 and they are going to sell that many less of them?!?!

    • Buzz
      January 4, 2013 at 8:34 am

      Whine, whine, whine. So sad when profits take preference over employees. What a lousy, crappy company. I hope GE takes a big chunk of their market share.

    • michael
      March 14, 2013 at 7:24 pm

      No they might not be able to develop a better smaller cheaper MRI or CAT scan machine. those pay raises the workers were going to get, forget about them.
      Of course that is the point of Obamacare, crush the poor and old and blame it on Republicans. The rich, like Stryker will not care about rising costs etc. They will be fat dumb and happy.

    • Gene Martinez
      May 21, 2013 at 7:55 pm

      The government will pay for any thing they sell so how will it affect them thats why they’ve don so well all these years!!!

  4. Heidi
    November 26, 2012 at 3:34 pm

    She is part of the gang of 4, radical….

  5. Marco
    November 28, 2012 at 9:14 am

    Don’t worry Drew, The price increase will be passed on to the consumer. The middle class is about to take a beating like it’s never seen before. Anyone who believes that Obama won’t radically raise taxes on the middle class is delusional.

    • Gene Martinez
      May 21, 2013 at 7:59 pm

      thats right and who is the consumer medicare and medicaid when did you last buy an MRI or Cat scan machine!!

  6. Barada
    December 1, 2012 at 3:54 pm

    The third generation to run a family corporation usually kills it.

  7. CMS for Financial Freedom
    March 11, 2013 at 12:07 pm

    When you build it – you get it. When you inherit it, you have two choices…support the policies that brung you to the party or play “cool” and join the social illiterate.

  8. Mark
    October 4, 2013 at 5:39 pm

    I suggest you go and read the NY Times (1971) 149 page paperback entitled, Non dare call it conspiracy,” by Gary Allen and Larry Abrhaham. THen you will understand.

  9. SovereignMary
    October 21, 2013 at 1:47 pm

    More than a little bit of an irony and hypocrisy taking place with Pat Stryker – wouldn’t you say?

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