FacebookTwitterGoogle+RedditEmail

How Will Obamacare Affect Unionized Workers?

by DAVID MACARAY

With most major provisions of the Patient Protection and Affordable Care Act (PPACA), commonly and often pejoratively referred to as “Obamacare,” set to go into effect in January 2014, union members across the country have been wondering how the PPACA will affect the health care benefits already laid out in their union contracts.

Although it’s a bit unnerving how few people in positions of authority (plant managers, HR reps, health care administrators, etc.) seem to know exactly how the PPACA will work, the answer to the question, “How will Obamacare affect my union health care benefits?” is fairly clear. The answer is that it will likely have no effect whatsoever.

As a general rule, contract language supersedes everything. Unless the language in question is in clear violation of state or federal law, it is going to trump all else. Indeed, that’s not only the whole point of a binding agreement, it’s the virtue of a union contract, the beauty of an employee having access to the collective bargaining process, and the advantage of not being treated like a doormat.

A recent article in the Washington Post raised what might otherwise have been a red flag. The Post reported that UPS announced that, as of January 1, it was no longer going to allow its employees to provide health care coverage for working spouses. If you had a wife or husband who was working elsewhere, you could no longer cover them. The change is expected to affect approximately 15,000 workers.

Because the PPACA requires employers (with 50 or more employees) to provide affordable health insurance, UPS management saw an opening and decided to exploit it. It was an opportunity to get out from under what they considered a fairly significant financial burden. But the article was careful to note that this applied only to its non-union workforce, and had nothing to do with its unionized employees (mainly Teamsters).

In theory, labor unions have the ability to control their own destiny via the collective bargaining process by customizing and adapting a contract to fit their specific needs. This is not something that came easily; it took organized labor more than 100 years to carve out that niche. So what’s the lesson for those non-union UPS workers and their spouses who just received the bad news? Not to be glib, but the lesson is that they need to organize.

Because much of this PPACA package is provisional, and because, presumably, everyone is going to be looking for loopholes and exceptions, there’s no way of knowing for certain what kind of health insurance these employers are going to provide. Yes, the coverage is mandated by federal law, but how good will it be? Only when you negotiate a medical plan at the bargaining table are you assured of knowing what you’re getting (and even then it’s often unclear).

But there’s some irony here. Prior to the PPACA, management could announce that it was no longer going to provide union employees with medical coverage. Although a company risks a strike by pulling a stunt like this, it’s been done in the past, and with replacement workers looming as the wild card, some companies have gotten away with it without going to war. A weak union, or a union dealing with a struggling company, wouldn’t have much of a choice.

However, with the PPACA in place, companies won’t have the option of unilaterally eliminating medical coverage. Removing this expensive item from the contract will no longer automatically result in cost savings because federal law will require that they provide it in any event.

And based on how most businesses regard government mandates, it’s safe to say they’d rather take their chances with a union bargaining team. Of course, as always, the bottom-line is going to dictate what happens in the health care arena, and if the PPACA card can be used as leverage, management will definitely play it.

Oddly, there’s a flip-side to this. It may turn out that fewer workers want to join a union once they realize companies are required to provide affordable health insurance. In truth, the main reason some people join a union is to have access to health insurance, so this scenario isn’t that farfetched. In any event, one thing is clear: Union-wise, Obamacare could very well be—as so many have predicted—a mixed bag.

David Macaray, an LA playwright and author (“It’s Never Been Easy: Essays on Modern Labor”), was a former union rep. He can be reached at dmacaray@earthlink.net

More articles by:

David Macaray is a playwright and author. His newest book is How To Win Friends and Avoid Sacred Cows.  He can be reached at dmacaray@gmail.com

Weekend Edition
February 23, 2018
Friday - Sunday
Geoff Dutton
One Regime to Rule Them All
Torkil Lauesen – Gabriel Kuhn
Radical Theory and Academia: a Thorny Relationship
Wilfred Burchett
Vietnam Will Win: The Work of Persuasion
Joyce Nelson
Why Mueller’s Indictments Are Hugely Important
Thomas Klikauer
Umberto Eco and Germany’s New Fascism
George Burchett
La Folie Des Grandeurs
Howard Lisnoff
Minister of War
Eileen Appelbaum
Why Trump’s Plan Won’t Solve the Problems of America’s Crumbling Infrastructure
Ramzy Baroud
More Than a Fight over Couscous: Why the Palestinian Narrative Must Be Embraced
Jill Richardson
Mass Shootings Shouldn’t Be the Only Time We Talk About Mental Illness
Jessicah Pierre
Racism is Killing African American Mothers
Steve Horn
Wyoming Now Third State to Propose ALEC Bill Cracking Down on Pipeline Protests
David Griscom
When ‘Fake News’ is Good For Business
Barton Kunstler
Brainwashed Nation
Griffin Bird
I’m an Eagle Scout and I Don’t Want Pipelines in My Wilderness
Edward Curtin
The Coming Wars to End All Wars
Missy Comley Beattie
Message To New Activists
Jonah Raskin
Literary Hubbub in Sonoma: Novel about Mrs. Jack London Roils the Faithful
Laura Finley
After the Parkland Shooting … Teach Youth About Dating Violence
Binoy Kampmark
Frontiersman of the Internet: John Perry Barlow
Chelli Stanley
The Mirrors of Palestine
James McEnteer
How Brexit Won World War Two
Robert Koehler
The Cheapening of Human Life
Ralph Nader
Absorbing the Irresistible Consumer Reports Magazine
Ted Rall
Never Mind Millennial Apathy, Here’s Generation Z Inbox x
Cesar Chelala
A Word I Shouldn’t Use
Louis Proyect
Marx at the Movies
Osha Neumann
A White Guy Watches “The Black Panther”
Douglas Valentine
The Real Man’s Ten Commandments
February 22, 2018
Jeffrey Sommers
Bond Villain in the World Economy: Latvia’s Offshore Banking Sector
Mark Schuller
Haiti’s Latest Indignity at the Hands of Dogooders, Oxfam’s Sex Scandal
T.J. Coles
How the US Bullies North Korea, 1945-Present
Ipek S. Burnett
Rethinking Freedom in the Era of Mass Shootings
Manuel E. Yepe
Fire and Fury: More Than a Publishing Hit
Patrick Bobilin
Caught in a Trap: Being a Latino Democrat is Being in an Abusive Relationship
Laurel Krause
From Kent State to Parkland High: Will America Ever Learn?
Terry Simons
Congress and the AR-15: One NRA Stooge Too Many
George Wuerthner
Border Wall Delusions
Manuel García, Jr.
The Anthropocene’s Birthday, or the Birth-Year of Human-Accelerated Climate Change
Thomas Knapp
Extraordinary Popular Delusions and the Madness of Russiagate
February 21, 2018
Cecil Bothwell
Billy Graham and the Gospel of Fear
Ajamu Baraka
Venezuela: Revenge of the Mad-Dog Empire
Edward Hunt
Treating North Korea Rough
Binoy Kampmark
Meddling for Empire: the CIA Comes Clean
Ron Jacobs
Stamping Out Hunger
FacebookTwitterGoogle+RedditEmail