http://labornotes.org/2010/01/anger-over-health-care-bill-creates-uncertain-
future

Anger over Health Care Bill Creates Uncertain Future
by Jane Slaughter, January 20, 2010

A Massachusetts local union president called it before the January 19  
vote for senator: Ive never seen this much anger at the Democrats from  
union people,said Jeff Crosby, president of a General Electric factory  
local near Boston, as he prepared a last-minute leaflet to hand out in  
the plant. Its worse than NAFTA.

Top union leaders had bargained a compromise [1] slowing down the  
health care benefits tax President Obama insisted on, but it was not  
enough to placate union membersand othersinfuriated that Obama had  
broken his campaign promise not to tax benefits.

Crosby said his members were threatening to vote Republican to stop  
the tax, since 60 Democratic senators and no Republicans had voted for  
it. In Massachusettsspecial election they chose empty-suit Republican  
Scott Brown over a Democrat bound to cement the benefits tax in place.

In a Suffolk University poll conducted a week before the election,  
union-household voters in Massachusetts reported only 45 percent  
support for the Democratic candidate; union voters nationally backed  
Obama by 60 percent in 2008.

According to those on a January 14 conference call with AFL-CIO  
President Rich Trumka, Massachusetts state fed President Bobby Haynes  
exploded in anger, blaming top union leaders for a terrible health  
care bill and for losing the Massachusetts electionand thus the  
Dems60th Senate seat, needed to ensure the health care bills passage  
(and the rest of labors agenda, labor law and immigration reform).

Obama took a hands-off approach to the content of the bill as it crept  
through Congress. He didnt insist on a public option nor a strong  
employer mandate to provide insurance. It was hard not to notice that  
the only issue on which he took a hard stand was taxing benefits.

At his meeting with a dozen labor leaders at the White House January  
11, Obama was firm that a tax on benefits was a must-havedespite his  
campaign promise to the contrary. We have a lot of video clips,said  
Machinists President Thomas Buffenbarger.

Although the benefits tax was not the only issue on Massachusetts  
votersminds (the faltering economy was the No. 1 concern in the  
Suffolk poll), it was one of the clearest examples of the Obama  
administrations tilt away from working class voters, beginning with  
the bank bailout.

Trumka too had predicted that the health care mess would backfire on  
Democrats. In a January 11 speech [2] at the National Press Club, he  
said, In 1992, workers voted for Democrats who promised action on  
jobs, who talked about reining in corporate greed, and who promised  
health care reform. Instead, we got NAFTA, an emboldened Wall  
Streetand not much more. [In 1994] there was no way to persuade enough  
working Americans to go to the polls when they couldn't tell the  
difference between the two parties.

NAFTA, which dealt a heavy blow to U.S. manufacturing, was voted up by  
Congress in 1993 after intense cajoling by President Clinton,  
garnering the votes of 102 House Democrats. Clinton lost the  
Democratic majority in Congress the next yearand never got it back.

LETS MAKE A DEAL
As the likely House-Senate compromise took shape in early January, it  
appeared certain that if the bill passed, people with good (or just  
expensive) benefits would face a steep 40 percent tax likely to push  
them into inferior plans.

So labor leaders reached a deal [3] with White House negotiators  
January 14 that accepted the tax theyd previously declared  
unacceptable. The deal announced by Trumka and his counterparts at  
Change to Win and the National Education Association would have  
exempted those in union-negotiated plans and state and local employees  
from the tax until 2018.

It also would have raised the threshold at which the tax kicked in for  
many other plans: those containing significant numbers of women, older  
workers, or retirees age 55 and up, or those in high-cost states, the  
latter affecting more than 38 million workers. Those provisions would  
have delayed those groupshit as well.

Trumkas goal was to exempt as many people as possible, union and non- 
union, from ever paying the tax, though only the velocity of health  
care cost inflation would have proved how successful he was.

Most of the 31 million insured employees who would be hit by the  
excise tax are not union members,Trumka noted before the deal was  
struck. But in the end unions bought extra time for their members at  
the cost of making themselves look self-interested. The deal will  
create awkward moments for union health care activists whove spent  
years trying to build broad coalitions.

STILL OPPOSED
Not all top union leaders backed the compromise plan. Buffenbarger  
told Labor Notes his members at Boeing, Lockheed Martin, and General  
Dynamics were already over the $23,000 threshold at which the tax  
would originally kick in.

No bill is better than this bill,Buffenbarger said. We don't care what  
the amount is that they peg it to: because of inflation, whatever  
number will be gobbled up pretty quickly.

Firefighters President Harold Schaitberger said his union didnt ask  
for the bills special, higher threshold for first responders, $26,000  
rather than $23,000. The provision was worthless, he said, because  
most of his members are pooled in larger municipal plans, with no  
mechanism to segregate them out. Were not going to buy into a special  
deal for us,Schaitberger said.

The Steelworkers Leo Gerard backed the compromise, telling Labor Notes  
he was thinking about Senator Jim DeMint, that right-wing nut from one  
of the Carolinas,who  said he wants to make health care Obamas Waterloo.

We have to do everything to make sure we get a good bill so we can  
move forward with the rest of the presidents agenda as quickly as  
possible,Gerard said.

Insiders say Trumka sold his compromise by arguing that health care  
reform had to get done so Congress could tackle long-delayed labor law  
reform the Employee Free Choice Act.

Labors weakness throughout the health care reform process put a  
question mark over EFCA anyway, and even the question mark lay in  
tatters after the Massachusetts election.

Buffenbarger who backed Hillary Clinton in the primaries was a pessimist  
in any case. We're not going to get EFCA anyway,he said. Its an  
election year. No way they're going to touch it.

TURN TO THE STATES
One bright spot could emerge from this winters health care debacle:  
union members not pushed into the arms of the tea-partiers could  
become convinced that Medicare for All is the only solution.

It may mean more people are apt to be engaged on single payer because  
they are getting hit themselves,said Lenny Potash, a retired AFSCME  
member and co-chair of the Labor Taskforce for Universal Healthcare  
[4] in Los Angeles.

Activists in California and Vermont have already begun serious work on  
state single-payer efforts.

The Vermont Workers Center [5] turned out 350 people to legislative  
hearings January 12 to testify for the states single-payer bill.  
Senator Bernie Sanders was followed by union nurses.

The center, the states Jobs with Justice affiliate, began organizing  
in earnest last year: a rally of 1,000 at the State Capitol on a work  
day; organized committees in every county; a dozen regional hearings.  
The result, says co-chair Traven Leyshon, is that we have changed  
whats politically possible. As recently as September the legislature  
said they couldn't be bothered with single payer.

All Democratic candidates for governor next fall say they support  
single payer (though Leyshon recalls former Governor Howard Dean, who  
was always for single payer till the day he became governor). The  
Democrats and the Progressive Party together have a veto-proof two- 
thirds majority in both houses.

A new single-payer bill, just introduced by a Progressive legislator,  
includes a just transition for insurance company workers and others  
who would lose their jobs under a single-payer system. The legislation  
was written so as to survive legal challenges.

SINGLE PAYER IN ONE STATE

California activists will back a single-payer bill starting this  
month, though Governor Arnold Schwarzenegger, whos in his last year,  
is certain to veto it for the third time (similar bills passed in 2006  
and 2008). The campaign kicked off January 11 with 1,000 members of  
the California Health Professional Student Alliance and others  
rallying in Sacramento.

Michael Lighty of the California Nurses Association [6] explained that  
winning single payer is a multi-year project: heavy education this  
year, electing a Democratic governor who wont veto single payer this  
fall, passing a new bill, taking the measure to the voters in a  
referendum. The media campaign alone could cost as much as $20 million.

What about the cost, in a state thats broke? Cate Engel of the Labor  
Taskforce for Universal Healthcare said the bill ultimately would save  
California billions of dollars, by reducing administrative costs and  
using the states mammoth purchasing power to force drug and equipment  
prices down.

What about California unions that havent backed single payeror ditched  
the idea before the fight even began, citing political viabi lity?  
Well, said Lighty, we saw what happened on the national level when  
they went for public option over single payer because of viability.

Bill Bryce is the Jobs with Justice organizer in Detroit. Hes shaking  
his head over the lost opportunities of 2009the year when Obama rode  
in on a wave of hope for change and corporations were in disgrace  
because of the financial fiasco.

Youre the president, you appear on TV and say, I have a suggestion,  
lets tax Wall Street bonuses at 50 percent and defray the cost of  
health care,'Bryce said. If this was not the time to take on the  
insurance companies and the banks, just when will that time come?
Source URL:
http://www.labornotes.org/2010/01/anger-over-health-care-bill-creates-uncert
ain-future
Links:
[1]
http://blog.aflcio.org/2010/01/14/health-care-tax-union-leaders-outline-big-
improvements-for-all-working-families
[2] http://www.aflcio.org/mediacenter/prsptm/sp01112010.cfm
[3] http://www.labornotes.org/blogs/2010/01/victory-or-pretzel
[4] http://laborforsinglepayer.com
[5] http://www.workerscenter.org
[6] http://www.calnurses.org