On Friday, the Heritage Foundation posted an article on why the unions support the proposed healthcare legislation. The short story is very simple--follow the money.
The proposed legislation includes a $10 billion bailout of union retiree health plans. Because the program would increase the number of government workers (to administer the new plan), it would increase the number of union members (government workers unionize more quickly than private sector workers). National healthcare would reduce the competitive disadvantage that unionized companies have.
According to the article:
"Many unions negotiate benefit packages that allow workers to retire early and collect health benefits until they qualify for Medicare. Many of these plans they are underfunded because unions mismanaged them.
"The healthcare legislation transfers $10 billion to these accounts, in the form of a reinsurance program that pays most of the cost of claims for workers in these plans. Like the GM and Chrysler bailouts, the health care legislation requires all taxpayers--including low income workers without retirement plans--to pay for benefits for already well-compensated union workers."
The legislation that is currently proposed would mean a financial windfall for the unions. If it is passed, they expect to increase their membership, increase the amount of dues collected, and lower their costs in benefits to members--all with taxpayers' money. If you question why unions support this bill, follow the money. Please read the entire article at the Heritage Foundation for details on all the reasons for union support of this bill.
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