Friday, January 15, 2010

Obama and Organized Labor Agree To Exempt Union Health Plans from Cadillac Tax; EFCA Is Next

Under the heading of "how to pay for a trillion dollar health plan," there is the proposed "Cadillac tax," which will kick in for plans valued at $8,900 or more for individuals and $24,000 or more for families.

The operative word is "some," -- that is some individuals and some families will be paying more simply because they have an employer willing to pony up for excellent employee health care.

The New York Post reports today that, "Big Labor got some big love from President Obama and congressional Democrats yesterday after they agreed to exempt union workers from the whopping “Cadillac tax” on high-cost health-care plans until 2018."

"The sweetheart deal, hammered out behind closed doors, will save union employees at least $60 billion over the years involved, while others won't be as lucky -- they'll have to cough up almost $90 billion."

And, the gifts to organized labor which have been substantial are just beginning if the White House has its way.

The Employee Free Choice Act (EFCA) is up next . . .

Town Hall reports that “Senate Majority Leader Harry Reid (D-NV) is mapping out a process by which the Senate can get EFCA passed as quickly as possible so that opponents won’t have time to voice opposition. There is even talk of including it in the next ‘jobs bill' which will be difficult for any politician, especially Democrats, to oppose.

But, from Peter List, we learn that not all hope is lost, but rather, hope rests in Massachusetts: "The Senate Special Election in Massachusetts next Tuesday is not going their way and, while the AFL-CIO sends its shock troops and the SEIU's attack ads and purple shirts flood the Bay state, GOP candidate Scott Brown's momentum seems to be gaining over his Democratic opponent Martha Coakley with Brown now leading Coakley. Even in her own polling, Martha Coakley's "bottom has fallen out."

"I have heard that in the last two days the bottom has fallen out of her poll numbers," says one well-connected Democratic strategist. In her own polling, Coakley is said to be around five points behind Republican Scott Brown. "If she's not six or eight ahead going into the election, all the intensity is on the other side in terms of turnout," the Democrat says. "So right now, she is destined to lose."

According to a Suffolk University poll, Brown is up by 4%.

How quickly has this race turned around?

In November, Coakley was beating Brown by 31 percentage points. Now, Brown is up by 4% -- a change of 35% in two months.

How important is this election to the nation?

Well, as one newscaster stated: "If Scott Brown wins next Tuesday...he will change the world of politics as we know it." This is what has union bosses so scared."

Indeed, but should Coakley pull it out in Massachusetts the Democratic "super-majority" in the Senate may well spell disaster for American business vis a vis the Employee Free Choice Act.

Advice: If you do not have a pre-emptive union counter-organizational plan in place, you should get moving. Now. Contact us at


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