[Congressional Record Volume 140, Number 97 (Friday, July 22, 1994)]
[Senate]
[Page S]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: July 22, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
                               PIZZA HUT

  Mr. DOLE. Mr. President, while I continue to believe that the health 
care debate is all about the search for solutions, there are some who 
think it is about a search for villains.
  The American Medical Association, the insurance industry, hospitals, 
pharmaceuticals, all have had their motives questioned by the White 
House or their supporters.
  Maybe the American Medical Association is off the hook now since they 
apparently made their deal with the White House, unfortunately.
  And now something called the Health Care Reform Project has launched 
a misleading and mean-spirited campaign against Pizza Hut. You heard me 
right. Pizza Hut.
  What is Pizza Hut's crime? Why do they deserve to be singled out, 
dragged before a Senate committee this morning, and attacked in today's 
New York Times?
  Well, Pizza Hut operates in Europe. And some European countries 
require by law that businesses must pay for health insurance to all of 
their employees. So Pizza Hut complies with the law. I assume that is 
the appropriate thing to do.
  American law is a little bit different, at least for now. The 
Government does not mandate that all employers pay for health insurance 
for all employees.
  The Health Care reform project claims that Pizza Hut ``Thrives in 
Germany and Japan where health care taxes are mandated by law. 
Therefore, mandates will work here, too.''
  Let me take a minute to introduce the folks over at the project to 
something they are not too familiar with, the facts.
  Now and then it is hard to talk about facts. It is not required 
around this place.
  The fact is that the expense of the mandates in Europe have helped to 
prevent Pizza Hut from expanding, and helped to prevent them from 
hiring more workers.
  With mandates, Pizza Hut has built less than 50 restaurants in Japan 
and Germany combined in the last 5 years, less than 50 in both those 
big countries.
  Without mandates, Pizza Hut has built over 1,700 restaurants in the 
United States in that same time period.
  With mandates, Pizza Hut added only 224 jobs in Germany, between 1992 
and 1993. In the United States, they added 14,652 jobs.
  With mandates Pizza Hut is forced to charge $19 in Germany for a 
pizza that costs $11 in the United States. In Japan, that same pizza 
would cost $25.
  It is also worth noting that Pizza Hut has been a leader in bringing 
health care reform to the U.S. restaurant industry. It offers health 
insurance to all of its employees in the United States, full time and 
part time. It was the first restaurant chain to offer health care 
coverage to all its part-time workers.
  Rather than a one-size-fits-all policy, however, Pizza Hut operates 
on a novel theory called choice.
  You know, you ought to have a choice in what you buy. A full-time 
employees have a choice among benefit programs that fit their 
individual or family needs. Some choose health care coverage. Some do 
not.
  In fact, when Pizza Hut offered health insurance to its part-time 
employees, who comprise 95 percent of their payroll, less than 10 
percent signed up. Seventy percent said they already had coverage from 
parents, spouses, or schools, 10 percent said they did not need 
insurance; and 10 percent just were not interested.
  I know the health care reform project is itching to make some more 
accusations, so let me save them the trouble. Yes, as the New York 
Times pointed out, Pizza Hut is headquartered in Kansas. Yes, some 
Pizza Hut executives are my friends, and probably have contributed to 
my campaigns. In fact, some have suggested that this may explain why 
Pizza Hut and not another member of restaurant industry has been 
singled out for attack. I hope that is not the case.
  But I defend Pizza Hut not because it is headquartered in Kansas or 
because I know some of their executives and some of their employees. 
They are all their employees. I defend them because they are an 
outstanding corporate citizen. And I defend them because they are 
right.
  I do not know what company or industry will be next to be attacked by 
the White House, the Democrat National Committee, or their allies, but 
from the arguments they use, I know that they like their Pizzas with a 
lot of baloney. And that is precisely what we are hearing today.

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