The Conversation

First Union to Endorse Obama Now Slams Obamacare

Great write-up at the U.S. Chamber of Commerce's blog on a recent report from UNITE Here, a 300,000-person that was the first to endorse then-Senator Obama in his presidential run.  But it seems the implementation of Obamacare has now left a bad taste in their mouth.

As this blog has pointed out in the past (e.g., here and here), labor unions were among Obamacare’s loudest cheerleaders until relatively recently, but they are now openly venting their disdain for the ACA and its false promises. The UNITE HERE report sums up its views nicely: “the [ACA’s] unintended consequences will hit the average, hard-working American where it hurts: in the wallet.” This fact has been obvious to many observers since 2010. 

Outlining the implications of Obamacare, the report predicts that employers will continue to cut workers’ hours in order to avoid providing mandated coverage for full time employees. Moreover, it observes, “if employers follow the incentives in the law, they will push families onto the exchanges to buy coverage. This will force low-wage service industry employees to spend $2.00, $3.00 or even $5.00 an hour of their pay to buy similar coverage.” Perhaps of greatest concern to UNITE HERE, the ACA threatens to ‘strangle’ competition and place union-created health care plans into a “death spiral” because participants in those plans, i.e. the union’s members, will not receive subsidies as many who buy coverage through the health exchanges will.

I have sympathy for the members affected, but not for the union leaders who willingly and ethusiastically campaigned for Obama.  He who sups with the devil should use a long spoon.


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