This essay discusses how the Labor Unions perceive the Affordable Care Act, or “Obamacare” as it is often called. Just as with the rest of the U.S. population, there are conflicting views. By reviewing a selection of published articles, it is hoped to assess whether on balance America’s Labor Unions see the Affordable Care Act as an opportunity or an obstacle.
According to Barone (Oct. 2013), the leaders of the labor unions have been complaining about Obamacare, adding their voices to the Republicans who oppose it. He reports that in July, presidents of three major unions (Teamsters, United Food Commercial Workers, and UNITE-HERE) representing a combined membership of almost three million, wrote to the Congressional Democrats, claiming that the Act would “destroy the very health and well-being of our members along with millions of other working Americans.” Barone points out that although in general, organized labor had supported the Affordable Care Act, the complaints voiced by those union leaders could well be valid. The Act encourages employers to reduce weekly working hours to below 30, and discourages the high benefit plans that the unions had negotiated, which will not help union recruiting campaigns. Under Obamacare, premiums on non-profit, multi-employer union plans are taxed. That directly affects employees in small restaurants, who are ineligible for the subsidies offered to policyholders with for-profit insurance organizations. Union leaders were also not best pleased that employers were offered concessions such as extending the originally mandated December 31 2013 deadline for “employer mandate and penalties.” Their anger was directed at President Obama for refusing to fulfil his “constitutional duty to faithfully execute the law.” In Barone’s view, the unions have for “many decades” supported legislation that not only benefits their members but is extended to non-members, too. An example is that the unions have supported a higher minimum wage (which helps push up higher union wage rates), whilst ignoring the evidence that such increases inevitably reduce employment of low-skilled workers. The unions also supported legislation that encompassed the same benefits for non-union workers which made those individuals less needful of union membership. Similarly, firefighter unions, by pressing for tougher legislation on building codes, etc, have seen the numbers of fires fall, which effectively means less firefighters are needed than previously. However, union actions to support such measures, including the Affordable Care Act, can be seen in the spirit of altruism – helping others. According to Barone they should at least be given credit for that, even though their support for Obamacare may be seen by some as self-destructive.
Greenhouse and Martin also highlighted the general position of the labor unions with regard to the Affordable Care Act in their New York Times article: “Unions’ Misgivings on Health Law Burst Into View.” Like Barone, they mention the unions’ displeasure at the President’s decision to postpone the deadline for the employer mandate, as well as how existing health insurance plans will be potentially affected by the upcoming health insurance exchanges. The disquiet felt by union leaders surfaced at the A.F.L.-C.I.O convention in Los Angeles, in the form of open criticism of both Congress and the Obama administration by labor leaders. Although the convention delegates expressed support for the overall legislation, there was an overwhelming majority supporting a resolution calling for changes to some of the regulations. Some union leaders were more outspoken than others. Terence O’Sullivan – president of the Laborers’ International Union of North America – said: “If the Affordable Care Act is not fixed and it destroys the health and welfare funds that we have fought for and stand for, then I believe it needs to be repealed.” He also added that he doesn’t want to see it repealed, but instead wants it “fixed, fixed, fixed.”
Greenhouse and Martin also mention the point made by others, i.e. that an effect of the Act will include a lessened need for workers to seek union membership, meaning in turn that unions will lose some of their power and influence across the country. Walsh and Fletcher (Sep. 17, 2013) also report in their Americans for Tax Reform article that the major labor unions have had a change of heart, and they now regret playing a key part in helping to get the Affordable Care Act passed back in 2010. According to the article’s authors, the union leaders now realize that the law they thought would give their members better access to affordable healthcare will in fact do just the opposite, which is likely to distance them from their membership. Walsh and Fletcher cite businesses having to eliminate previously-provided healthcare coverage for employees, as well as cutting their hours, suggesting that the probable cause is the raft of new or increased taxes caused by the provisions of Obamacare. Due to the ways the new systems work, there is no longer a need for union members to depend on their union to negotiate healthcare benefits, so reducing the need for union membership.
Conclusions
Having reviewed the situation as perceived by union leaders and others, it would seem that the net effect of the Affordable Care Act is a negative one for the union movement. Not only are many workers likely to see their healthcare benefits reduced, but could have their working hours cut, and – importantly – have less need of union membership. Essentially then, whilst the unions in general supported the concept of the Affordable Care Act, the detail has shown that its overall effect for them is unwelcome; i.e. it is an obstacle rather than an opportunity.
Works Cited
Barone, Michael. (Oct. 22, 2013). “Unions vs. Obamacare.” National Review Online. Available at: http://www.nationalreview.com/article/361829/unions-vs-obamacare-michael-barone
Greenhouse, Steven, and Martin, Jonathan. (Sep. 11, 2013). “Unions’ Misgivings on Health Law Burst Into View.” New York Times. Available at: http://www.nytimes.com/2013/09/12/business/unions-misgivings-on-health-law-burst-into-view.html?pagewanted=all&_r=0
Walsh, Brendan, and Fletcher, Tom. (Sep. 17, 2013). “Organized Labor Now Regrets Supporting Obamacare.” Americans for Tax Reform. Available at: http://www.atr.org/organized-labor-regrets-supporting-obamacare-a7869
