Labor unions have been crucial to advocating for health care reform across the country, including progressive provisions like the public option. But at the end of the debate, there are unconfirmed but potentially troubling signs that they may be more concerned with protecting their own health benefits and eliminating the excise tax on high-end insurance plans rather than trying to pass a bill with a public option.
Andy Stern of the SEIU told ABC News today that he would be unhappy but satisfied if a trigger were added to the public option:
Key to job creation, he said, is a health care bill. While the SEIU has strongly supported a public option to compete with private insurers, Stern indicated that including a “trigger” that would only establish a public entity down the road, if promised savings don’t materialize, might be acceptable to his union.
“I think it weakens the opportunity to hold down the cost,” Stern said of the trigger concept, the subject of ongoing negotiations in the Senate. “Is it better than doing nothing? Absolutely. Would it be great to add some more subsidies if we’re going to have a trigger? For sure. I mean, the issue really is, will people be able to afford this health care? Will small businesses be able to afford it? And putting some kind of cap on these insurance companies’ behavior is absolutely essential.”
Stern seems to be foregrounding the affordability measures, but the other major union coalition is targeting the excise tax. The AFL-CIO has purchased a two-week ad buy, starting in Washington but eventually going to states with key Senators, calling on Congress not to “tax health care benefits.” This is an allusion to the excise tax, which would tax insurance companies for policies above an $8,500 threshold for individuals and $23,000 for families. The Obama Administration has repeatedly cited the excise tax as an important cost-control measure.
The AFL-CIO in particular has member unions which took expensive health care policies in exchange for wage increases in labor negotiations, and would thus have policies vulnerable to the excise tax, expected to be passed on from the insurance company to the policyholder or employer. There are exemptions to the tax in the bill for certain occupations.
A recent report from the consulting firm Mercer showed that many employers may “raise deductibles, change insurers or scale back coverage” to avoid the excise tax.
The release of a health care ad, at a key moment, which only cites the excise tax among the key policies being decided, may lead some to believe that the labor movement is more interested in deep-sixing the excise tax than other issues like the public option. Would they even be willing to trade away the public option if in exchange they got a raising of the excise tax threshold, or its abolition?
An AFL-CIO spokesman, Eddie Vale, questioned that assumption. “To us the bill needs to have three things, which are same three things we have been saying since day one. 1) public option, 2) don’t tax workers benefits and 3) employer mandate,” Vale told FDL News via email. “So we want, and continue to fight for, all three. The fact that this ad is specifically addressing the tax issue doesn’t imply that we care less about the public option and employer mandate.”
The employer mandate isn’t in the Senate bill at all, replaced with a “free rider” mechanism that could end up being discriminatory toward low-wage workers. And the public option is completely up in the air at this point. When asked if the AFL-CIO would be doing specific ads on those issues down the road, Vale said that the federation didn’t know their plans yet. He pointed me toward Health Care for America Now (the AFL-CIO is a member of that coalition), which he said is doing a lot of work on the public option. “Since the tax impacts workers much more than the many members of that coalition, we wanted to do an additional layer just on that issue.”
With the next few days crucial for the public option, it does not seem, at least to me, that the labor movement in general is agitated about it, or at the very least is more exercised about other elements of reform.
FDL News attempted to contact a few of the AFL-CIO member unions for this story, but received no formal response. The legislative director of AFSCME, the public employees union, was unavailable at press time.



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Andrew Stern I am surprised. What the fuck…the Insurance companies have had decades to do the right thing.
Unions “pull the trigger now” Why wait
Senator Sherrod Brown is not backing down.
Dear MoveOn member,
Right now, Senate Democrats are locked in round-the-clock negotiations that could decide the fate of the public health insurance option.1 A deal could come within days.2
But while a handful of conservatives are making headlines with proposals to gut the public option, just one or two senators could upset the balance of power by refusing to give up on it. And your senator, Sherrod Brown, is stepping into the breach.
Yesterday, he spoke out strongly against compromising on the public option:
“There’s no negotiations as far as I’m concerned. We’ve compromised the public option three times, maybe four, depending on how you define it. This bill is not going to continue to become more pro-insurance company”3
Can you call Sen. Brown right now to thank him for his strong stance? Tell him you’re a constituent who’s counting on him to stand strong, and ask him to support the health care bill only if it has a real public option.
Here’s where to call:
Senator Sherrod Brown
Phone: 202-224-2315
Though it’s probably not feasible at this stage of the game, I still say that we’d be better off in the long run to scrap this Frankenstein monster and start with a clean chalkboard. (No, not the one that Glenn Beck uses…) Four words: Sin-Gle Pay-Er…
No need to over-complicate things.
I wouldn’t be a bit surprised. There is no vision of the national good in this health care reform process, just an exercise in every piece grasping for the most they can get.
Who knew? Come on.
Wonder if our dear Jane could have a chat with Stern. She has her connections and her unbelievable power of intellect and persuasion.
The Senate bill is junk anyway. Kill it.
Thanks!
She’s pretty much managed to keep the public option alive, with our help, for months after it was supposed to have been sacrificed.
1) It’s not junk.
2) This is literally our last chance to fix health care before it eats what’s left of our economy. If it’s not done now, we won’t get it done in my lifetime.
2) This is literally our last chance to fix health care before it eats what’s left of our economy. If it’s not done now, we won’t get it done in my lifetime.
That would be the flip side of my #3. Maybe once the thing is in place, it can eventually be tweaked into something better, exploding Wingnut heads notwithstanding.
And folks wonder why unions are going down the tubes??? Mr. Stern needs to remember that there are a hell of alot more people NOT in unions than are in one. Not alot of people have their cadillac health care plans. Throwing us under the bus will certainly not be good for their future organizing efforts.
What, if anything, is Leo Gerard saying on HCR these days?
If we don’t get it done now I think we’ve got a damn good chance in the not so distant future. We can make single payer the issue of the 2010 elections. Progressives haven’t had a chance like this in a long time.
Maybe Stern is thinking……put whatever will pass in the bill and then we’ll work hard over the next few years to make it a strong public option? Hey, could be.
This is the problem with the labor – progressive coalition. They only care about their own narrow self-interest. It’s hard for me to get excited about card check when they don’t help us with the public option. And if we don’t help them on card check, no one will.
And it’s not just them being realists. Teamsters and IBEW trashed the public option months ago, saying it wasn’t a priority for their members.
When is the last time Stern lived on 8 or 10 bucks an hour, AND
had less than 1000 or $3000 to cover:
medical problems,
the car falling apart,
the kid getting sick,
missing work,
paying for college to get a better job!
saving for your kids future?
screw stern. he’s spent tooooooooooo many years in the leafy neighborhoods, listening to what is pragmatic and rea$onable from people with re$ource$. Once again, $ocial Cla$$ win$.
rmm.
yup. Looks like the unions aren’t too thrilled with card check either considering EFCA is nowhere on anyone’s agenda these days. Looks like they threw their own bill under the bus. Stupid.
In fact, the picture that comes to mind is the Very Powerful People (including union heads), like vultures, picking over the not-quite-dead body of the people.
It matters to all of us here that we get a strong robust public option. If the Republicans and DINOs foul this up?…the health care that’s available now crappy as it is will collapse on it’s own weight and so will the Dem Party. Prescription drug prices have doubled and sometimes tripled just in the last six months and health insurance as we know it has also doubled. The corporate health care industry will take our economy down just the same as Bush/Chaney did our economy and the Dems are just standing by and watching.
Good Morning David and Firedogs
have been concerned about this ever since the excise tax showed up in the Senate bill – thinking it was all about wringing something out of Labor, and crossin’ my fingers the whole time that it wasn’t the PO
Stern has already given the nod to the Opt Out – AFL-CIO kept their cards closer to the vest at the time
the senate bill includes at least one poison pill – undermining state based insurance regulations. why do you think making insurance regulated like credit cards (they just set up in the state with the least regulations and use that base to sell their defective product nationwide) is a fix and not junk?
Stern has been in on this from the get go. His paid goons were here trashing single payer at every forum and hawking the eventual Baucus plan. The other unions are trying to save their last vestiges of meaningfulness by trying to at least not have their members taxed instead of the uber rich. What a mess.
Kill the bill. Fight for a single payer, improved Medicare for All plan. The fight is now to save Medicare and Social Security. They are gunning for those.
We are living in Chile 1973 or more likely Bolivia of 1985 when Naomi Klein believes there was a backroom deal aka coup that solved the election crisis that had split the vote between the two candidates. Paz became president and Goni got to run the country financially. First thing they did was cut food subsidies, froze wages and opened up Bolivia to privatizing their state companies. Jeffrey Sachs had suggested that “shock therapy” was the remedy.
I believe what Sheldon Wolin believes in his book “Democracy Inc: Managed Democracy and Inverted Totalitarianism” that the coup here took place in 2000. The Friedman Shock Doctrine (Neo Feudalism) began in earnest. The plans for a Homeland Security Department was already in place waiting. And so began “disaster capitalism” with a vengeance. We have bad people making money from natural disasters from floods and tsunamis to manufactured wars to protect our “national interests” (big weasel phrase).
Your probably right however I got in this to end the war and for healthcare. The Dems play traitor then we vote for Blue Dems or stay home.
Then Rahm can explain to his adoring press why his candidates did a replay of Clinton’s loss off the House after Healthcare.
Just what did the Unions get for this I’m hoping they at least held out to end Nafta. If not they sold out cheap.
It’s interesting that they used Bernanke to float the idea of targeting “entitlements.”
other than a very few people like bernie sanders (who has very little power on his own) i completely agree.
fwiw, my take is that with our current political system, politics as usual (insider dealmaking and electoral politics) is just not capable of delivering on the goal of universal healthcare because the centers of immense status quo power (insurance, big phrama, the dem party, etc) have to be taken on directly. that’s why i think social movement politics is what is required.
my 2 cents.
Oops. Correction to my post. The two candidates in the 1985 Bolivian election was the former dictator Hugo Banzer and Victor “Paz’ Estenssoro. In the backroom deal, they gave the presidency to Paz and put a Bolivian senator “Goni”who had studied at…surprise….surprise….the U of Chicago in charge of a top secret economic team. “Paz” was also a conflicted kind of liberal. Reminds me of Gore.
The plan however did not take into account a world wide financial crisis. And every idea the Chicago School has to save the economy only makes things worse. The learning curve of those fools however is a bit to long for us to wait we have to take them out now.
Ding.
I asked my Teamster friend about this. They are hunkering down and taking care of their own. They have to prove that they can deliver to their members or become irrelevant. I guess that’s the thinking. Oh and they want Fed Ex. It’s every man and woman for themselves now. No more collective, just that rugged individualism aka dog eat dog.
Desperation play during an economic downturn when we are fighting an unpopular costly war Helicopter Ben suggests cutting Social Security to save money.
The PR timing on this is horrible, its counter productive it suggests nobody is really in charge nobody in PR would suggest now as a time to bring up cuts to Social Security.
The GOP should know that while the Center Dems won’t use this we Damm well will tar them with this!
That will lead to their downfall. Union members have been sold a bill of goods by the leadership, which for decades has been way too cozy with the bosses.
I don’t think it was any more desperate than the Stupak amendment. I think it was a calculated move to give our neoliberal Congress a leg to stand on in trying do doing away with SS and Medicare.
How are they getting Fed Ex?
We keep fighting an unpopular war by cutting a popular program like Social Security during an economic crisis when people really need it.
I am going to disagree.
They want to unionize FedEx like UPS. FedEx is being very resistant.
They don’t give a rat’s ass about us. The Rethugs control corporate media. What is Fox saying about Bernanke’s comments? Shrub tried the privatizing idea. Dissent didn’t come from Congress, it came from the public. How many Rethugs and ConservaDems have parroted the lines from the teabaggers? The Blue Dogs are “copy to” on all of the Rethug talking points and white papers.
I agree they don’t care about us but they need to ride public anger to make the changes they need not stir up more public anger they are playing Czar before the revolution.
They think they can replicate Hitler’s rise to power they forget those same conditions created Stalin.
Jane needs to use her power now to just get this bill killed completely so we can start over.
Section 1555 page 367 of bill — no mandates for insurance companies, but mandates for us, the little people.
this paragraph alone is reason to kill the bill.
Czar Stern doesn’t represent the labor movement. He is despised by most other unions due to his limelight craving, his minimal accomplishments for his union and his attempts to raid other unions to increase his head count.
He is also too close to the ruling elites than any other union head.
Under the current economic situation how hard would it be to convince the low info voters that gutting SS and Medicare is the right thing to do?
Those same voters who say they’re happy with their health insurance plans.
Those same voters who buy into the “we have to fight them over there so we don’t have to fight them here.”
Those same voters who want to lock up every single undocumented immigrant.
Those same voters who buy into “they’re gonna take your guns away.”
Those same voters who want a return to back alley coathanger abortions.
The list goes on.
We’re not dealing with reality based ideas, we’re dealing with propaganda and the Rethugs are masters at it.
re social movement politics, i left RBG a long quote on that from one of my fav books on the subject of strategy and grand strategy in social movement politics (in a thread where the auto comments closed unfortunately occurred before i could leave more). but anyway here’s the link for the curious.
Thanks. I’m going to have to go back and read more of that thread. I haven’t read Moyers’ book but your bit from Chap 1 is right on and what I’ve been hoping could be accomplished here.
Also see georgewalton’s comment here
Alinksy’s book is a must have for any activist’s bookshelf. I obviously need to read it again. *g*
I’ll be going to the indy bookseller later and ordering Doing Democracy. Thanks for the hit.
Vultures are ALWAYS the fattest where the carrion is the MOST plentiful.
Quite true on Stern being despised by many other labor leaders.
He was merely irritating when he loudly criticized other unions for their failed organizing strategies, suggesting that only SEIU had workable organizing strategies.
He was infuriating when he founded the Change to Win, with its assumption that smaller unions were obsolete and that he would personally put the AFL-CIO out of business.
All that turned to outright hatred when he torpedoed the re-unification of the AFL-CIO and engaged in widespread raiding of other unions.
The SEIU is an Illegal Alien union. How does advocating amnesty for Illegal Aliens ensure my job and wage security? Please explain that to me…
So which of your jobs is threatened? Your lawn mowing job? Your vegetable picking job? Your hotel grounds maintenance job? Or that fabulous restaurant dish washing job?
Uh, black folks in L.A. used to have the hotel jobs….not any longer. Uh, L.A. County discovered over 300 jobs being done by Illegal Aliens in their work force, of which over 75 of them were making six-figure salaries….Thousands of warehouse UNION jobs at $20ph w/benefits were gone and the guys working those jobs were replaced by Illegal Aliens at $8ph with no medical benefits other than going to any emergency room….
That’s not much of an explaination to a union guy…
We have a thoroughly corrupt system with Obama opposed to changing the core of the status quo.
We have an immoral unproductive casino on Wall Street accountable to no one. The game is rigged, the dice are loaded and insider trading is rampant. Money is Power. There are those like Warren, Kucinich, Sanders standing up to Obama, Geithner, Baucus. The first cohort has few supporters, the second owns the process.
During the Iraq mobilization, the left was in the streets deriding the pro war ‘activists’ as being the 101st keyboard commandos. – Well here we are…
I do not understand why we haven’t tethered this issue directly to the issue of campaign finance reform? Where are our loudmouths? Why isn’t Lakoff throwing out frames we can use, while Luntz is a reliable supplier of frames for them?
There will be no PO because the PTB (Lord Blankenfein; to wit AETNA) have no use for one.
So,it appears that we cannot walk and chew gum, we’re a one trick pony and when that trick bombs; instead of keeping on with our overarching demand, we’ll be contemplating regrouping.
Yey, Sisyphi !
Don’t count me among the Mexican haters but there are a lot of construction jobs, some of which pay quite reasonably, that are filled by illegal immigrants.
You’re gonna be surprised that I’m a card carrying, dues paying member of the IWW.
Do you have a link to substantiate your statement …”which over 75 of them were making six-figure salaries…?” That’s a pretty good trick. As a bookkeeper I get a notice from the IRS any time an SSN error shows up. If it isn’t straightened out the IRS pays a visit to the employee.
Living in FL I’m well aware of that habit. It’s a legitimate concern. Law enforcement doesn’t want to get involved for various reasons, corruption being one of them. Developers and builders have quite the corner in influence in this state.
Stern is yet another of those pointy headed ivy leaguer control freaks.
This bill stinks because labor abandoned single payer before the opening gambit which diminished our position. Further expressing their desperation to pass anything, they adopt a posture where we’re compromising the compromises from a compromised position.
What use is SEIU if they are going to negotiate my family health benefits that run around $9K/yr, which have seen out of pocket share of cost rise 300% for co payments over the past 5 years and 600% for premiums over hte past ten, if they’re going to turn around and tax those benefits? I’m helping a dear friend, SEIU retiree, through acute leukemia right now who has the same health insurance that we do, and having to shell out $15 to go to each of his myriad providers is killing him financially as the cancer eats away at his body.
Is Stern suggesting that the government put a hold on his disability payments to cover his luxury health tax because we have to pass something?
@laborite57, most undocumented construction workers around these parts are Irish, skin as pale as the head on a Harp’s.
Most Latino undocumented workers take jobs that most americans would not, but if Larry Summers has his way, we’ll be forced to take those jobs to avoid the refrigerator box and cat food, and like it.
Hah, well said
Except that labor never “abandoned” single-payer, because they were never fully on board for single-payer in the first place.
Also, I lived in NYC for years and never met an undocumented Irish immigrant. The immigration quotas as they apply to Irish are so loose, there is little or no need to skirt the laws.
that’s great!!! i really liked it, very practical advice and model combined with inspiring language. hope you like it to (my apologies if you don’t!)
Uhhh….Am I the only one wondering why the AFL-CIO ad includes a Sarah Palin look alike>?
The growth machine is what corrupts state and local politics. The amount of money to be made off of public entitlements like zoning changes dwarfs the cost to run a political campaign. Politicians avoid making enemies with people who can give them a run for their money on election day.
Here’s what happened with the unions and card check.
And here’s what’s wrong with Andy Stern as well as some background on what labor unions didn’t do in support of healthcare reform.
With SEIU as the poster child, who in their right mind would want to join a union right about now?
The amount of time and resources they’re spending in internecine gunslinging, within SEIU alone, not to mention the greater “movement,” is treason against working Americans because we need all hands on deck at a time like this.
Quite so…and exactly why the Republicans are doing their best to make SEIU the poster child for organized labor.
The Republicans can only succeed in this if other labor leaders stand aside and let Stern be the symbol of unionism. Trumka has made a good start in stepping up to the plate, but we need others as well.
montanamaven, do you have any more info or concrete evidence (links, personal experience, etc) on this? i looked for a contact link at your blog but couldn’t find it. if you don’t see this until later, you can always email me at my handle AT gmail DOT com. thanks!
Personally, I’ll take the right wing up on their offer, for us to give up union political activity on our behalf if they give up corporate political activity on their behalf.
That seems pretty accurate. Almost immediately this initiative grew to become about largess and opportunism; not actually setting a set of clearly defined goals, and creating a solution that optimizes for them.
American unions have been very narrow in focus since the real left and syndicalist unions were crushed in the early 20th century. The ones the government helped prop up do little to threaten power and often rally behind the Democratic Party in the end no matter what. The ones who got us 40 hour work weeks, an end to child labor, more vacation time, and everything else people take for granted were the left and anarchist unions. The current unions have fought for improvements for workers in their specific trade, like higher wages and benefits, but fall short of working together for sweeping changes for all workers.