Welch Allyn is a medical device manufacturer based in Skaneateles, NY, a small town between the cities of Syracuse and Auburn. The area needs all the jobs it can get, and every job lost is a tragedy. When Obamacare was being debated, former Rep. Dan Maffei said that the medical device tax included in the law would hurt his district. He voted for it anyway, and later said he had no regrets. Well, today Welch Allyn announced that the company is restructuring due to the tax that will cost it millions of dollars. They will be laying off hundreds of workers, including about 45 here in Central New York.
Speaking with CNYCentral by phone, the company’s president and CEO Steve Meyer confirms 275 jobs will be lost worldwide, including 45 locally.
“We firmly believe this restructuring program is the right thing to do for the long-term success of the business, however, we also fully recognize the hardship it will cause some of our colleagues in the short term,” Meyer said.
The cuts will include both voluntary and involuntary offerings. Employees will be given severance packages and offered an educational assistance program.
Company leaders say the cuts are part of a restructuring plan. They blame the layoffs on the new medical device tax set to take effect next year as part of the Affordable Care Act. The mandate requires a 2.3% tax on sales of medical devices.
“This restructuring plan will help us maintain competitive levels of investment in new products and technologies that are necessary to meet the changing needs of the global healthcare environment,” stated Meyer. (Read More)
Businesses and manufacturers have been fleeing this state for decades. The last thing we need are more laws, taxes and regulations that hurt the companies that remain. But that’s what Dan Maffei voted for, before he was voted out of office. Now he wants his job back. Rep. Ann Marie Buerkle released a statement reminding voters that Dan Maffei voted for this monstrosity.
“Welch Allyn is an excellent employer and a vital asset to our community. Today’s announcement is a devastating blow to our economy in Upstate New York,” said Buerkle. “Washington should be creating a reasonable business environment so that employers can operate and do business here without going overseas. Dan Maffei’s vote to raise taxes on Welch Allyn and other local employers is nothing short of irresponsible.”
She’s being too kind. That’s just how she is.