Union leaders joined President Obama in hailing the historic, if narrow, passage of major health reform legislation in the House this weekend.

The bill “is a fiscally responsible bill that will cover 96 percent of Americans, end insurance company discrimination and denials of care and equip health care providers with the tools they need to lower costs for families and the country as a whole,” AFL-CIO President Richard Trumka said. “The bill…does not attempt to finance reform on the backs of the working middle class... But we still have a long way to go.”

Speaker of the House Nancy Pelosi (D-Calif.) and other House Democrats gather for a press conference after the House of Representatives passed the healthcare reform bill 220 to 215 late Saturday night. (Photo by Brendan Smialowski/Getty Images)

Indeed, as this blog and other observers point out, the real sticking point in the Senate probably won’t be the public option or even the extreme anti-abortion language passed in the House, but the critical issue of how to pay for the legislation. Will it be by taxing the rich, as the House does, or burdening the middle-class with new taxes and costs? That’s what union advocates and the Congerssional Joint Committee on Taxation say will happen as a result of the Senate’s tax on insurers that offer high-cost plans.

The conventional wisdom in Washington is, as the AP put it Sunday, that the “millionaire’s tax is a non-starter” in the Senate, but grassroots activism by unions, public opinion and the strong backing of the AARP and AMA for the House version all add political clout to the drive to keep the House payment approach alive.

Over at the Daily Beast, Matt Yglesias points out the hurdles to reconciling two starkly different versions of paying for the legislation:

The merits of the two approaches aside, the work of a political compromise will be extremely difficult. The House’s approach seems to have almost no support in the Senate, and wasn’t even seriously considered by members of the Senate Finance Committee. Conversely, the Senate’s approach is opposed by labor unions, and over 150 House Democrats have signed a letter saying they also oppose it. The party leadership, simply put, has very little margin for error when it comes to trying to sort this issue out. A handful of defections from the 219 Democrats who voted in favor of reform last night could probably be made up, but not much more than a handful. And in the Senate, it essentially required Democratic unanimity to pass bills in the face of routine filibustering and solid GOP opposition.

There hasn’t been much rancor around this issue, simply because it hasn’t been in the public view. But it will be soon. How can health-care reform pass if it’s financed by a mechanism that key moderate senators have dubbed a “non-starter?” Alternatively, how can you imagine a universal health-care bill passing with no Republican support over the opposition of the AFL-CIO? Comprehensive health-care reform is closer than ever to happening, but it’s still far from obvious that it will happen.

On top of that important issue, the five-vote majority was pulled together in part by securing the votes of some of the 64 ConservaDems in support of an amendment barring any tax dollars even indirectly subsidizing abortion. It’s the biggest rollback of a woman’s right to choose in decades, and one that could hit low-income women the hardest.

It’s a poison pill that Democrats in individual, GOP-leaning districts had to swallow, but not one that most Democratic Senators can easily accept if they want to avoid primary challenges or low turnout from disaffected Democratic voters in state-wide races. The assumption in Washington is that somehow the hard-line stance in the House bill will be finessed in the Senate, and either defanged or removed in conference.

But some journalists and bloggers say, the hard-line abortion amendment could have been significantly weakened, at least, if pro-choice groups had lobbied harder and more effectively—and if House leadership had taken more seriously  the concerns of pro-life Democrats and the U.S. Conference of Catholic Bishops as a roadblock to reform. 

Now millions of low-income women who might seek to buy insurance with a taxpayer subsidy could find themselves denied the right to access medical care and legally terminate a pregnancy. Pro-life forces were justifiably cheering at this news. But it’s clearly at odds with the spirit and intent of health reform, let alone the Democratic Party platform.

Equally troubling to reform advocates is the slow-down in the Senate and the ominous signals that Sen. Reid sent last week hinting that a final vote in the Senate might not take place until early next year. The Senate bill has been in a form of limbo over the last two weeks; activists believe this impasse needs to be challenged with more grass-roots pressure.

Nor surprisingly, the inside-the-Beltway mentality that declared the public option dead a month ago is still contending that you need 60 votes to pass a bill with a public option. In fact, progressive strategists say, you just need 60 votes to stop a filibuster, and 51 votes using budget reconciliation to pass a bill if cloture can’t be reached. Here’s how the center-right AP’s news analysis frames the issue:

If a government plan is part of the deal, “as a matter of conscience, I will not allow this bill to come to a final vote,” said Sen. Joe Lieberman, the Connecticut independent whose vote Democrats need to overcome GOP filibusters.

“The House bill is dead on arrival in the Senate,” Sen. Lindsey Graham, R-S.C., said dismissively.

No floor debate scheduled

Democrats did not line up to challenge him. Senate Majority Leader Harry Reid, D-Nev., has yet to schedule floor debate and hinted last week that senators may not be able to finish health care this year.

Nonetheless, the House vote provided an important lesson in how to succeed with less-than-perfect party unity, and one that Senate Democrats may be able to adapt. House Democrats overcame their own divisions and broke an impasse that threatened the bill after liberals grudgingly accepted tougher restrictions on abortion funding, as abortion opponents demanded.

The lesson drawn from the House action by the AP’s analyst is: do what’s needed to compromise with your party’s right wing. On the Senate side, that would mean abandoning the public option in practice, and perhaps keeping it in name only with a “trigger” provision that could take years to put in place as 45,000 people die annually because of a lack of health insurance.

SEIU President Andy Stern drew a different lesson from the House victory, as a statement from the union said:

“Real leadership does not govern out of fear but looks at the obstacles facing our country and pushes for bold solutions that live up to our country’s promise. Like the creation of Medicare and Social Security, today’s historic passage of the Affordable Health Choices Act by the House of Representatives will be remembered as a pinnacle moment when Congress showed the courage necessary to live up to our American ideals,” Stern said.

SEIU’s members have been on the front lines for more than a decade in the fight to reach this historic moment. Its two point one million members – nurses, doctors, janitors, nursing home workers, child care providers – spent these years knocking on doors, making tens of thousands of phone calls, and donating their time and money to make sure Congress delivered meaningful reform.

Stern continued, “The Affordable Health Choices Act guarantees quality health insurance is affordable and that the insurance industry can no longer stand in the way of people getting the care they need at a price they can afford…

“We heard enough of ‘No We Can’t’ from the insurance industry, special interests and Republicans today and we will not let them stand in the way of a healthcare system that Americans have fought for nearly a century to realize.”

Stern emphasized that it is “now up to the Senate to lead with the same audacity to guarantee that meaningful health insurance reform does in fact happen this year.”

This article originally appeared in Working In These Times on November 9, 2009. Reprinted with permission from the author.

About the Author: Art Levine, a contributing editor of The Washington Monthly, has written for Mother Jones, The American Prospect, The New Republic, The Atlantic, Slate.com, Salon.com and numerous other publications. He wrote the October 2007 In These Times cover story, “Unionbusting Confidential.” Levine is also the co-host of the “D’Antoni and Levine” show on BlogTalk Radio, every Thursday at 5:30 p.m. EST.

Over the next few days, I’ll be taking a closer look at the provisions on the House health care bill – H.R. 3962, the Affordable Health Care for America Act. As was the case when the original tri-committee bill was released, the House committees have a ton of fact sheets on the bill that are required reading for folks looking to learn more.

Overall, the House bill is a bill that takes on the insurance industry. Here’s how:

A Public Health Insurance Option

First and foremost, the House bill creates a public health insurance option, available in the new health care marketplace called the “Exchange,” that would compete directly with private insurance. The public option won’t have to worry about profits or stockholders, and because it is run by HHS, it will have huge bargaining clout to get good rates from providers. Overall, while the public option in the House bill won’t save taxpayers as much money as a public option based on Medicare rates, it will still save money according to the CBO.

Because of all that savings, and because the public option will have a mandate to provide health care to people, not maximize profit, it will be a strong competitor to private insurance, keeping prices down and attracting customers. Private insurance will be forced to compete or face losing their most profitable customer base – the individuals and small group customers who are in the Exchange from the start.

Insurance Industry Regulations

The House bill puts new regulations on the insurance industry to curb their bad practices.

The practice of rescission – terminating someone’s insurance plan because they get sick – would be outlawed immediately. Similarly, as soon as this bill is signed, lifetime caps on insurance coverage would be outlawed.

After the Exchange is set up in 2013, all insurers, not just the ones in the Exchange, will be barred from denying care for pre-existing conditions, charging more if your are a woman or sick, or employing annual benefits caps. They will have to cap out-of-pocket expenses at a standard level, keep administrative costs down to below 15%, and publicly disclose and justify their rate increases.

Medicare beneficiaries and the unemployed will benefit as well, with overpayment to private companies through Medicare eliminated and COBRA coverage extended until the Exchange is set up.

Finally, the House bill will eliminate the anti-trust exemption on health insurance companies, making it possible to finally prosecute them for their monopolistic practices.

Immediate Relief

The House bill also provides immediate relief for people at the mercy of the insurance industry by setting up an interim high risk pool open to people who have been uninsured for at least a few months or who have been denied insurance because of pre-existing conditions.

Though clearly not a long term solution, the high-risk pool, combined with the COBRA extensions mentioned above, would get people out from the trap the insurance industry has put them in until full reforms kick in.

Taking on Drug Companies

The House bill also gives us significant savings from drug companies, which according to the Washington Post would amount to between $125 and $150 billion in cuts to their profits.

It does this by eliminating the donut hole which forces seniors to pay unaffordable prices for prescription drugs, starting immediately and completely closing the hole by 2019. It also requires the Secretary of HHS to negotiate for better drug prices for Medicare and Medicaid, and makes it easier for Medicare Part D to offer free generic prescription drugs to enrollees.

Of course, some issues, like biologics (new drugs exempted from generic competition), are still unresolved.

————————

There’s a lot to talk about in the House bill – employer responsibility, fair financing, a whole host of other reforms that take effect immediately. Over the next few days I’ll talk about those. However, the overall thrust of the bill is clear – it takes on the insurance industry for consumers, strengthening care for folks without insurance, on the individual market, in small and large businesses, and on Medicare and Medicaid.

About the Author: Jason Rosenbaum is a writer and musician currently residing in Washington D.C. He is interested in the intersection of politics and culture, media consolidation issues, and making sense out of our foreign policy disasters. He currently works for Health Care for America Now and he is also the webmaster for The Seminal.

This article originally appeared in Health Care for America Now on October 29, 2009. Reprinted with permission from the author.

Senate Majority Leader Harry Reid (D-Nev.) announced in a Capitol Hill press conference today that he will send a health care reform bill to the Senate floor that includes a public option. States will have until 2014 to decide if they want to participate in the public plan.

Reid said he was optimistic that health care reform will pass:

“I feel good about progress we have made within our caucus and with the White House, and we are all optimistic about reform because of the unprecedented momentum that exists.

“I believe that a public option can achieve the goal of bringing meaningful reform to our broken system. It will protect consumers, keep insurers honest and ensure competition. And that’s why we intend to include it on the bill that will be submitted to the Senate for consideration.”

In a telephone press conference this morning, AFL-CIO President Richard Trumka said any real health care reform bill must include a robust public option that helps lower premiums and keeps insurance companies honest by guaranteeing competition.

Real reform also must require employers to pay their fair share by providing health coverage or contributing to help pay for subsidies, Trumka said. Real reform should ensure that working families who already are struggling to pay for health care insurance are not asked to pay even more in the form of a new  excise tax on their coverage, he added.

There are still things that still need to be fixed in the Senate bill, according to the Health Care for America Now (HCAN) coalition, but Reid deserves thanks for including a public option. Click here to add your name to an HCAN the petition thanking Reid for fighting for America.

This post originally appeared in AFL-CIO blog on October 26, 2009. Reprinted with permission from the author.

About the Author: James Parks had his first encounter with unions at Gannett’s newspaper in Cincinnati when his colleagues in the newsroom tried to organize a unit of The Newspaper Guild. He saw firsthand how companies pull out all the stops to prevent workers from forming a union. He is a journalist by trade, and worked for newspapers in five different states before joining the AFL-CIO staff in 1990. He has also been a seminary student, drug counselor, community organizer, event planner, adjunct college professor and county bureaucrat. His proudest career moment, though, was when he served, along with other union members and staff, as an official observer for South Africa’s first multiracial elections.

Photo by Joe Kekeris/AFL-CIO

When Sen. Olympia Snowe (R-Maine) suggested she would block health care reform if it included a public option, Maine workers took action: The Maine AFL-CIO put its convention on hold so attendees could call her and tell her that a public option is essential to make reform work. (Recent polls in Maine suggest Mainers strongly support a public option.)

Here are some of the latest developments in the fight for real health care reform:

• Momentum is building for a public option in final bills being crafted in the U.S. Senate and the House. This is a critical time to contact your senators and representatives.
• Big companies like Wal-Mart are lobbying hard to exempt the coverage they provide from health care reform. That would leave tens of millions of workers stuck in the same high-cost, no-guarantee system we have today.
  

  Union members in Arkansas and across the country are telling their senators to support real health care reform.

• 55 members of Congress who oppose giving America the choice of a public option are actually getting government-administered health care through Medicare.
• Becky Moeller, president of the Texas AFL-CIO, writes in today’s San Antonio Express-News that the insurance companies are trying to stay in charge of our health care, but working families can’t afford the status quo.
• Mark Froemke, president of Minnesota’s Northern Valley Labor Council, has a great op-ed today in the Grand Forks Herald that lays out the stakes on health care:

If Congress fails to enact reform, things won’t just stay the same-they’ll get worse…unless we enact changes now, those who manage to keep their coverage will pay an even heftier price over the next 10 years.

As it stands, insurance companies have a stranglehold on our health care system, driving up costs and coming between middle-class Americans and the care they need.

• Minnesota union members rallied for heath care this week in Duluth, St. Cloud and Rochester.
• Union members in Louisiana and Arkansas also are rallying and reaching out to their Senators to demand health care reform that works.
• Yet another insurance company is playing with numbers, seeking to scare people about health care reform. This time it’s WellPoint fudging the facts and leaving out critical information. Check out this great chart from Think Progress that shows how the insurance companies are fighting reform.
• The Center for American Progress Action Fund has a great new report out today detailing insurance company’s tactics to hide vital information about denying coverage.

This post originally appeared in AFL-CIO blog on October 23, 2009. Re-printed with permission from the author.

About the Author: Seth Michaels is the online campaign coordinator for the AFL-CIO, focusing on the Employee Free Choice campaign. Prior to arriving at the AFL-CIO, he’s worked on online mobilization for Moveon.org, Blue State Digital and the National Jewish Democratic Council. He also spent two years touring the country as a member of the Late Night Players, a sketch comedy troupe.

Today, the Senate Finance Committee voted on two amendments from Senators Schumer and Rockefeller to add a public health insurance option to the Baucus Bill. Both of those amendments were defeated, 8-15 and 10-13 respectively.

In a long debate on the amendments, Senators spoke out vigorously in favor of the idea. Rockefeller exhorted his colleagues to consider the people of this country as they vote. Schumer asked why the insurance industry was afraid of a little competition. Cantwell, Menendez, Bingaman, Kerry, Bill Nelson, and Stabenow all made their cases and pushed back hard on the misinformation coming from the opposition. The intellectual and moral case for the public health insurance option was clear. And there were some pleasant surprises as Senator Wyden voted for both amendments, and Senators Bill Nelson and Carper voted for the Schumer amendment.

On the Rockefeller amendment, which would have created a public health insurance option based on Medicare, the roll call was:

Democrats

Max Baucus, MT – No
John D. Rockefeller IV, WV – Aye
Kent Conrad, ND – No
Jeff Bingaman, NM – Aye
John Kerry, MA – Aye
Blanche Lincoln, AR – No
Ron Wyden, OR – Aye
Charles Schumer, NY – Aye
Debbie Stabenow, MI – Aye
Maria Cantwell, WA – Aye
Bill Nelson, FL – No
Robert Menendez, NJ – Aye
Thomas Carper, DE – No

Republicans

Chuck Grassley, IA – No
Orrin Hatch, UT – No
Olympia Snowe, ME – No
Jon Kyl, AZ – No
Jim Bunning, KY – No
Mike Crapo, ID – No
Pat Roberts, KS – No
John Ensign, NV – No
Mike Enzi, WY – No
John Cornyn, TX – No

On the Schumer amendment, which would have created a “level playing field” public health insurance option, the roll call has:

Democrats

Max Baucus, MT – No
John D. Rockefeller IV, WV – Aye
Kent Conrad, ND – No
Jeff Bingaman, NM – Aye
John Kerry, MA – Aye
Blanche Lincoln, AR – No
Ron Wyden, OR – Aye
Charles Schumer, NY – Aye
Debbie Stabenow, MI – Aye
Maria Cantwell, WA – Aye
Bill Nelson, FL – Aye
Robert Menendez, NJ – Aye
Thomas Carper, DE – Aye

Republicans

Chuck Grassley, IA – No
Orrin Hatch, UT – No
Olympia Snowe, ME – No
Jon Kyl, AZ – No
Jim Bunning, KY – No
Mike Crapo, ID – No
Pat Roberts, KS – No
John Ensign, NV – No
Mike Enzi, WY – No
John Cornyn, TX – No

In the most conservative committee in the Senate, which is itself the most conservative house of Congress, a public health insurance option got the support of an overwhelming majority of the governing party. And as such, it sets the stage for the next step.

As has been reiterated over and over on this blog, the public health insurance option saves money and lowers costs, it’s the only way to hold insurance companies accountable, and it is overwhelmingly popular – both in Congress, where four out of five committees have already passed a public health insurance option, and with the American people, 77% of whom support the idea. The next time the public health insurance option will come up for consideration is when Harry Reid merges the Finance bill with the HELP bill. The above facts should be kept in mind during that process.

Today was the first step in building momentum for a public health insurance option in the Senate. Clearly, the idea has weight – even self-described moderates such as Bill Nelson and Tom Carper voted for it. As we move to the floor and into conference, with Schumer, Rockefeller, and other champions pledging support and whipping their colleagues, those numbers can and will continue to grow. As Schumer says, a public health insurance option will be in the bill President Obama signs into law. It’ll take work, but it can and will happen.

Chris Bowers has an update to our Senate whip count proving we have 51 votes in the Senate for a public health insurance option. Senator Harkin concurs. As today made clear, there will be surprises as this debate commences. Senators Wyden, Carper, and Nelson (FL) made clear that they support a public health insurance option, something that we didn’t know beforehand. Who knows what other surprises await us as the push continues.

Today was the first step. Today, Senators voted for the first time on the sole question of the public health insurance option, and a huge majority of Democrats supported it. There is no question that this was a big day for health reform, and it will shape the ground going forward.

About the Author: Jason Rosenbaum is a writer and musician currently residing in Washington D.C. He is interested in the intersection of politics and culture, media consolidation issues, and making sense out of our foreign policy disasters. He currently works for Health Care for America Now and he is also the webmaster for The Seminal.

This article originally appeared in Health Care for America Now on September 29, 2009. Reprinted with permission from the author.

The North Carolina union organizer who was the inspiration for the movie “Norma Rae” died on Friday of brain cancer after a battle with her insurance company, which delayed her treatment. She was 68.

Crystal Lee Sutton, formerly Crystal Lee Jordan, was fired from her job folding towels at the J.P. Stevens textile plant in her hometown of Roanoke Rapids, N.C. for trying to organize a union in the early 1970s. Her last action at the plant — writing the word “UNION” on a piece of cardboard and standing on her work table, leading her co-workers to turn off their machines in solidarity — was memorialized in the 1979 film by actress Sally Field. The police physically removed Sutton from the plant for her action.

But her efforts ultimately succeeded, as the Amalgamated Clothing Workers won the right to represent the plant’s employees on Aug. 28, 1974. Sutton later became a paid organizer for the union, which through a series of mergers became part of UNITE HERE before splitting off this year to form Workers United, which is affiliated with the Service Employees International Union.

Several years ago, Sutton was diagnosed with meningioma, a type of cancer of the nervous system. While such cancers are typically slow-growing, Sutton’s was not — and she went two months without potentially life-saving medication because her insurance wouldn’t cover it initially. Sutton told the Burlington (N.C.) Times-News last year that the insurer’s behavior was an example of abuse of the working poor:

“How in the world can it take so long to find out [whether they would cover the medicine or not] when it could be a matter of life or death,” she said. “It is almost like, in a way, committing murder.” 

Though Sutton eventually received the medication, the cancer had already taken hold. She passed away on Friday, Sept. 11 in a Burlington, N.C. hospice.

“Crystal Lee Sutton was a remarkable woman whose brave struggles have left a lasting impact on this country and without doubt, on me personally,” Field said in a statement released Friday. “Portraying Crystal Lee in ‘Norma Rae,’ however loosely based, not only elevated me as an actress, but as a human being.”

Field won an Oscar, a Golden Globe and the Best Actress award at the Cannes Film Festival for her portrayal of the character based on Sutton. The film in turn was based on the 1975 book “Crystal Lee: A Woman of Inheritance” by New York Times reporter Henry P. “Hank” Leiferman.

Sutton was only 17 when she began working at the J.P. Stevens plant in northeastern North Carolina, where conditions were poor and the pay was low. A Massachusetts-based company that for many years was listed on the Fortune 500, J.P. Stevens is now part of the WestPoint Home conglomerate.

In 1973, Sutton, by then a mother of three, was earning only $2.65 an hour. That same year, Eli Zivkovich, a former coal miner from West Virginia, came to Roanoke Rapids to organize the plant and began working with Sutton, who was fired after she copied a flyer posted by management warning that blacks would run the union. It was that incident which led Sutton to stand up with her “UNION” sign.

“It is not necessary I be remembered as anything, but I would like to be remembered as a woman who deeply cared for the working poor and the poor people of the U.S. and the world,” she said in a newspaper interview last year. “That my family and children and children like mine will have a fair share and equality.”

For more on Sutton’s life and work, visit the website of the Alamance Community College’s Crystal Sutton Collection.

(Photo of Sutton speaking in Minnesota in 1988 from the Crystal Sutton Collection.)

About the Author: Sue Sturgis is Editorial Director and Co-Editor, Facing South. She joined the Institute in November 2005. A former staff writer for the Raleigh News & Observer and Independent Weekly (Durham, N.C.), she is co-author of the Institute reports “One Year after Katrina” (August 2006) and “The Mardi Gras Index” (February/March 2006). Sue holds a Masters in Journalism from New York University.

This article originally appeared in Facing South on September 14, 2009. Reprinted with permission from the author.

The Senate Finance Committee’s health care reform proposal released this morning falls far short of the comprehensive reform that would provide working families with the quality and affordable health they desperately need, say health care advocates.

In a statement this morning, outgoing AFL-CIO President John Sweeney says the bill

“fails to meet the most basic health care needs of working families and it fails to meet the expectations we have set for our nation.”

The labor leaders say the Finance Committee bill’s reliance on so-called health care co-ops as an alternative to a public option

fails to put pressure on private insurers to control health care costs. There is no history or logic behind the claim that health care co-ops would provide real competition for the giant private insurers that have a stranglehold on health coverage today.

While the bill’s main author, committee chairman Sen. Max Baucus (D-Mont.), spent weeks trying to win some moderate Republican backing for the plan, not a single GOP senator has endorsed it. One key Finance Committee Democrat has already announced he will oppose the Baucus bill unless significant changes are made.

Along with dropping the public health insurance option-which is part of the House bill (H.R. 3200) and the Senate Health, Education Labor and Pension (HELP) committee bill-the Baucus bill also taxes some health plans and individuals who fail to buy private insurance, while providing no penalties to irresponsible employers who do not provide coverage.

While taxing group plans that may have higher costs because the plans cover older workers, workers with worse than average health histories or who simply live in higher cost areas, it imposes no taxes high cost individual plans.

Sen. Jay Rockefeller (D-W.Va.), a long-time advocate of health care reform, says because the bill abandons the public health insurance option-among other objections–

there is no way in present form I will vote for it. Therefore, I will not vote for it unless it changes during the amendment process by vast amounts… I am putting down a marker, which I think others should put down, too, who might feel the same way I do.

There are, some provisions in the bill that do provide important insurance industry reforms and improvements in how health care is delivered and paid for with a focus on quality over quantity. But say the AFL-CIO leaders

But the proposal’s strong points are nowhere near sufficient to outweigh its problems. However well intentioned the attempts at bipartisanship, the final product reflects the bankrupt policies of the past more than the forward-looking policies needed to drive meaningful health care reform.

We are counting on finance committee Democrats to fix the bill and side with working families, not insurance companies.

The Finance Committee is scheduled to begin mark-up of the bill-when improving amendments can added-next week. The Senate HELP committee has approved its version and action on the House legislation is expected later this month.

About the Author: Mike Hall is a former West Virginia newspaper reporter, staff writer for the United Mine Workers Journal and managing editor of the Seafarers Log. He came to the AFL-CIO in 1989 and has written for several federation publications, focusing on legislation and politics, especially grassroots mobilization and workplace safety. He carried union cards from the Oil, Chemical and Atomic Workers, American Flint Glass Workers and Teamsters for jobs in a chemical plant, a mining equipment manufacturing plant and a warehouse. He’s also worked as roadie for a small-time country-rock band, sold blood plasma, and played an occasional game of poker to help pay the rent. You may have seen him at one of several hundred Grateful Dead shows. He was the one with longhair and the tie-dye. Still has the shirts, lost the hair.

This article was originally published in AFL-CIO blog on September 16, 2009. Re-printed with permission from the author.

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(The following post is part of our Taking Back Labor Day blog series. Many people view Labor Day as just another day off from work, the end of summer, or a fine day for a barbecue. We think that it’s a holiday with a rich history, and an excellent occasion to examine what workers, and workers rights activism, means to this country. Our Taking Back Labor Day posts in September will do that, from a variety of perspectives, and we hope you’ll tune in and join the discussion!)

*****

President Obama’s well-received health reform speech not only boosted public support for reform, but helped fire up much of the progressive base—despite his failing to draw a firm line in the sand on the public option.  

Yet as Mike Lux, co-director and CEO of Progressive Strategies, pointed out Thursday on the Web radio show I co-host, “The D’Antoni and Levine Show,” Obama accomplished a key goal of inspiring progressives, including influential labor leaders, to push harder for reform—while starting to recapture the “narrative” about healthcare back from the right-wing.

Lux observed: “In order to get big pieces of legislation passed, you have to have people who are pumped, ready to go, fired up, willing to knock on doors. He was having trouble generating that. People were confused and down in the mouth. But the speech did what he needed to do and did it in a big way.

More sparks for a reform drive are expected to start this weekend, when the AFL-CIO begins its convention, and Obama appears before them next week, following up on his fiery Labor Day rally appearance and Wednesday’s congressional speech.

Before the president’s address to Congress, Lux added, “we never really had control of the narrative. Obama, for all his eloquence, had trouble laying out a story of what was wrong and why he wanted it changed. In order to tell a compelling story, you have to tell who the villains are, and he’s not very good at that. We never really had a story being told that people could latch on to, understand and get excited about.”

“We now have that,” Lux said on Thursday about the President’s messaging. “Last night, he went after insurance companies in a big way, and went after people lying about the plan, and called them out in a big way. And now have a narrative we can take to people.”

(Of course, long before the speech, many activists in the union movement have been working hard for healthcare reform — an issue that’s now become a legislative priority ahead of the Employee Free Choice Act — but the speech can reignite their fervor while broadening the range of people involved in grass-roots activism.)

Meanwhile, insurance industry executives continue to play their part as villains: a new report by the California Nurses Association shows that up to 40 percent of claims are denied in California insurance companies, making those profit-driven bureaucrats part of the real “death panels.” On Amy Goodman’s Democracy Now! show this week, she highlighted the nursing association report and featured an interview with a mother, Hilda Sarkisyan, whose daughter died after she was initially denied a liver transplant by CIGNA, which has a 33-percent claim rejection rate so far this year. After a massive public campaign, the insurance company finally relented, but it was too late:

HILDA SARKISYAN: Well, we miss her. We don’t have our beautiful daughter with us anymore. And CIGNA is doing this every day, every day. And that’s why I’m out there to help other families to stop them. It’s not only CIGNA; it’s all the insurance industry, that they are placing profit before patient, and it’s not right…You know, they should not enforce the care of the people to their deep pockets. It’s all about their pocket, all about the CEO, how much he makes. I miss my daughter. I had a beautiful, perfect daughter. I don’t have her anymore. I don’t.

AMY GOODMAN: Hilda, describe what happened to your daughter.

HILDA SARKISYAN: Well, we had insurance. We were covered. We thought we had insurance. So it’s like having insurance and not having insurance is the same thing. People who have insurance and don’t have it, they get the same care. But having insurance and knowing that you do have it, and you are recommended to a certain hospital, because the insurance company only pays if you go to that hospital, you go to that hospital, which in our case was UCLA. We were transferred there. By the way, that’s our fourth hospital within, I would say, three years, because they were jumping us around. And finally, you go there. My son gave her the perfect bone marrow transplant, perfect match. And my daughter needed a liver transplant. And so many requests, so many requests, and they were—the doctors were denied. We were denied, until the California Nurses Association stepped in, helped us out.

We had to get out and go to their headquarters in Glendale, make a scene with our family, the Armenian Youth Federation, our church. Why do we have to do that? I’m a mother who should have been next to my daughter. Only if I knew she was going to die that same day, you think I would have that energy to go out there and do that? I could have been holding my daughter’s hand and praying with her. This is not right.

With his speech to Congress last night, President Obama re-energized the forces for reform and has set a clear path for victory. We’re going to do our part and hold Congress accountable – the time has come for Congress to put people above profits and enact real health care reform. We’re also going to pull out all the stops to take on the insurance industry. The President’s right – ‘The time for games has passed – now is the season for action.’

President Obama made clear his support of a public option, which is just that – an option that will help improve quality, lower costs and keep the insurance companies in check.

Labor Day marches and rallies capped off more than a month of an incredible union member mobilization to move the health care reform debate beyond the screaming diatribes and disruptive tactics by opponents that marred the start of the congressional recess.

During the weekend, some 150,000 union members turned out for rallies, parades and picnics that not only celebrated the workers’ holiday, but showed broad support for comprehensive health care reform.

Those events followed the more than 400 August town hall meetings, health care forums and other events where more than 24,000 union members spoke up for health care and wrote letters, made phone calls and went door to door to educate their neighbors.

The Hudson Institute, which, as prior unbossed stories have shown, has historically been a shill for the tobacco industry, Monsanto products, and more, is now making a huge push to go after unions . . . Unions and their allies should take this attack seriously.

A recent Hudson Institute “study” on pensions, claims (among other things) that comparing union pensions versus company pensions (a vague division of a complex area) shows that unions underfund pensions for their members but generously fund pensions for their own employees. Holy shades of Central States Pension Fund scandal!

The charges, if taken seriously, could be the sort of thing that leads to indictments or at least investigations or at least calls for investigations. What could be a better way to knock out one of Obama’s supporters and supporters of progressive causes than to tar them with scandal and charges of corruption?

The “study” is strong on its results but fails to peel apart distinctions among pension funds that matter. For example, pensions funds are funded by employers, not unions, but you would never know that from the language used. The “study” also fails to point out that, when unions fund their employees’ pensions funds, the union is acting in the capacity of an employer.

It also fails to disaggregate data and talks about all pension funds related in some way to unions as if they were all the same. That is not the case. They differ in their form and in their roles and industries. For example, the construction industry and other industries as well, such as mining have historically used multi-employer pension and benefit funds – also known as Taft-Hartley funds – whose benefits and payments are negotiated as part of collective bargaining agreements and controlled by trustees who are representatives of the employer or union. Other unions negotiate the benefits to be provided by the employer and do not have a multi-employer fund.

For more on Taft-Hartley funds, here is a clear overview.

Consider that these funds operate in industries, such as construction, that have been under huge stress for a number of years, with job losses that may lead to pension underfunding. Without some clearer explanations, it’s impossible to assess the validity of the results.

Consider also that rather than employers being the white knights here, employer after employer has gone to the PBGC to take over and fund pensions for seriously underfunded pensions.

How did the Hudson Institute miss this bit of recent current events?

Unions need to take these charges seriously. Forbes has gone with the story, and there can be no doubt it will be pushed to the max. And getting digs in with this story will only encourage using this tactic to go after more issues that are on the political agenda now and that matter to us.

Dealing with the Hudson Institute takes more than quips. They are well funded and serious. Their “research” has been used to push bad policy in a number of areas. The study gets in a number of serious attacks on unions that may well be picked up and promote negative views about unions. Here is the study.

It should also be noted that the author of the study seems to have been responsible for issuing study after study in a short time period that are forming the intellectual basis for much of the far Right’s agenda right now. As “studies”, they are likely to be given a great deal of credibility.

Here is what the author was doing over her summer vacation.

* 09/07/2009

Union Bigs Get The Best Deals: A Sour Labor Day Lesson on Pensions

* 09/03/2009

Don’t Buy Unions’ Labor Day Bluster

* 08/27/2009

Obama’s Excessively Optimistic Deficit Projections

* 08/20/2009

Turning Uncle Sam into Peeping Tom

* 08/14/2009

Are Women Paid Less Than Men?

* 08/13/2009

Obama’s Health Care Bogeyman Is Obama

* 08/10/2009

Real Madrid, a Threat to Anyone

* 08/06/2009

The High Cost of Medical Malpractice

* 08/06/2009

Reduce The High Cost of Medical Malpractice

* 07/30/2009

The Healthcare Bankruptcy Myth

* 07/23/2009

Is America Ready for Single Payer Healthcare?

* 07/16/2009

A Very Unhealthy Health Bill

* 07/14/2009

Minimum Wage Hike Spreads Blue State Unemployment Misery

* 07/09/2009

Obama, Title IX, and Academics?

* 07/09/2009

Gender Equality: From Sports to Math and Science

* 07/03/2009

Getting a Summer Job: Entrepreneurship for Teens

* 07/02/2009

It’s Time to Go Nuclear

* 06/26/2009

What Will The Climate Change Bill Do to Your Job?

* 06/25/2009

Socialized Medicine Through the Eyes of a Recipient

* 06/19/2009

Starting a Trade War with “Buy America”

* 06/18/2009

A VAT Tax Is Not the Answer

* 06/17/2009

Workers Deserve Better Pension Plan

* 06/11/2009

High-Speed Rail: A Big-Ticket Item That Drives Deficits

* 06/11/2009

A Better Way to Fund Roads

* 06/04/2009

We Face Major Healthcare Choices

* 06/04/2009

The Health Insurance Reform Stakes Begin

* 05/28/2009

Obama Should Ditch Deadly CAFE Standards

As for the study on pensions, it says that unions pressure employers into signing onto union benefit and then use the money for other purposes in the tradition of the troubled Teamsters Central State fund, leaving the workers covered by those funds without the benefits promised. It then says to compare that situation with the funds that cover the employees of unions who get nice well funded benefit plans. This sort of charge fits nicely goes after the popular view in Gallup polls on the public’s view of unions through the years that unions do a nice job for their members.

Some of the findings verge on calling for an investigation of unions pension funds for criminal behavior.

That part of the study has now been used in an op-ed for Labor Day.

Union Bigs Get The Best Deals: A Sour Labor Day Lesson on Pensions

From The New York Daily News on September 7, 2009 by Diana Furchtgott-Roth

This Labor Day, unions are once again seeking to recruit new members with promises of higher wages and generous pension benefits. These promises are made despite pension funds’ reports to the U.S. Labor Department showing that collectively bargained pension funds are underfunded when compared with other pensions.

In contrast, pension funds for unions’ own staff and officers have been doing just fine.

In 2006, the latest year for which full data are available, only 17% of union-negotiated plans were fully funded, compared with 35% of nonunion plans.

Under the Pension Protection Act of 2006, funds with less than 80% of assets are in “endangered” status. In 2006, 41% of union funds were “endangered,” compared with 14% of nonunion funds.

Whether it’s best to go after the study directly or to take pieces of it apart and go after the ideas, without naming the source, is a matter of strategy and tactics.

It is important to go after every piece of what is claimed in that study and take them on in as serious a way as they are after unions and other progressive forces in our society.

Forbes may describe the Hudson Institute as “conservative leaning”. What it really is is a shill for the tobacco industry, pesticide use, anything made by Monsanto, and so on. It is funded by hard right groups like Scaife. Its most active activist is Alex A. Avery, Director of Research and Education, Center for Global Food Issues. Given what it is, how could anyone cite anything it says with a straight face. its stock in trade is creating astroturf groups, such as Avery’s Earth Friendly, Farm Friendly.

More on the Hudson Institute and its fellow travelers here.

http://www.sourcewatch.org/index.php?title=Hudson_Institute

http://www.sourcewatch.org/index.php?title=Center_for_Global_Food_Issues

http://www.politicalfriendster.com/showPerson.php?id=565&name=Hudson-Institute

http://www.politicalfriendster.com/showPerson.php?id=3583&name=Dennis-T-Avery

http://www.frontgroups.org/search/node/hudson+institute

• pensions,
• unions,
• labor,
• work,
• employment

This article originally appeared in Unbossed on September 8, 2009. Re-printed with permission from the author.