So why do unions strongly support President Obama's health care reform, which includes a plan for a government-run "public option" that would crowd out private health insurance?
Labor publicly argues that the current health care system serves Americans poorly.
However, unions also have self-interested motives for promoting government-run health care:
-The legislation includes a $10 billion bailout of union retiree health plans that is on the brink of total failure.
-Nationalized health care would lead to millions of new dues-paying union members as government employees unionize more frequently than private sector workers; and
-National health care would also reduce unionized companies' competitive disadvantage.
A Financial Windfall for Unions
Unions claim that they support health care reform out of concern for workers' well-being. Many union leaders genuinely do, but the labor movement as a whole fights for government-run health care out of self interest.
The health care reform legislation includes a $10 billion bailout of underfunded union health and pension plans. More significantly, a government takeover of the health care sector would ease union organizing by eliminating competition and turning health care workers into quasi-public employees, as has happened in Canada. Unions would collect billions of dollars of new dues from millions of new workers. Government health care also reduces the competitive disadvantage unionized companies face in the marketplace.
Health care reform means a financial windfall for unions. However, unions oppose health care reform for which they must pay. Congress should not pass any "public plan" that would lead to the government directly or indirectly controlling health insurance at the behest of self-interested union lobbying.
However, unions do not support all health care reform plans. When Senators proposed taxing health benefits to pay for health care reform--a tax that would disproportionately fall on union members--the labor movement threatened to derail the legislation. Union support for health care reform is highly self-interested.
Labor publicly argues that the current health care system serves Americans poorly.
However, unions also have self-interested motives for promoting government-run health care:
-The legislation includes a $10 billion bailout of union retiree health plans that is on the brink of total failure.
-Nationalized health care would lead to millions of new dues-paying union members as government employees unionize more frequently than private sector workers; and
-National health care would also reduce unionized companies' competitive disadvantage.
A Financial Windfall for Unions
Unions claim that they support health care reform out of concern for workers' well-being. Many union leaders genuinely do, but the labor movement as a whole fights for government-run health care out of self interest.
The health care reform legislation includes a $10 billion bailout of underfunded union health and pension plans. More significantly, a government takeover of the health care sector would ease union organizing by eliminating competition and turning health care workers into quasi-public employees, as has happened in Canada. Unions would collect billions of dollars of new dues from millions of new workers. Government health care also reduces the competitive disadvantage unionized companies face in the marketplace.
Health care reform means a financial windfall for unions. However, unions oppose health care reform for which they must pay. Congress should not pass any "public plan" that would lead to the government directly or indirectly controlling health insurance at the behest of self-interested union lobbying.
However, unions do not support all health care reform plans. When Senators proposed taxing health benefits to pay for health care reform--a tax that would disproportionately fall on union members--the labor movement threatened to derail the legislation. Union support for health care reform is highly self-interested.
