Commentary Magazine


Big Labor Sold Out by Democrats

Harold Meyerson writes of Big Labor’s reaction to ObamaCare:

Labor believes, rightly, that the cost controls in the Senate bill come chiefly from insurance policy holders (among them, labor’s members), rather than from insurance and drug companies. Both the AFL-CIO and the Service Employees International Union have condemned these provisions, while hailing the bill’s epochal creation of affordable health insurance for 30 million Americans. They’re careful, too, to exempt President Obama from their criticisms.

Actually, if the labor bosses had their members’ interests at heart, they’d be outraged and looking to upset the deal. For starters, insurance for 30 million Americans really doesn’t do much for their members,  nearly all of whom have union contracts giving them that benefit. (Come to think of it, unions dig their own graves by supporting mandatory benefits for nonunion workers, thereby lowering the incentive to unionize.) Moreover, the excise tax on Cadillac plans hits their members disproportionately and quite severely. Having run against a similar proposal by John McCain, now Obama is delivering the same bitter pill to his political allies, as Meyerson concedes:

Politically, in fact, the tax could set in motion the kind of dynamic that undermined many Great Society anti-poverty programs: taxing the working class to provide benefits to the poor (or, in this case, the uninsured). Richard Nixon and Ronald Reagan smashed the Democrats’ New Deal coalition by fanning the racial and class tensions endemic to such programs.

So what exactly is in this for union members and why aren’t their leaders trying to stop this assault on their financial interests? You got me. But union members might start to wonder why millions in union dues are being used to support candidates who back legislation so hostile to their economic well being.