From Megan McArdle, earlier this week:
The second problem is that the 40 percent excise tax on especially expensive plans — the so-called Cadillac tax — is going to hit union plans especially hard. Unlike most people negotiating compensation, union negotiators make an explicit trade-off between wages and other benefits, and the benefit that they seem most attached to is generous health plans. Union plans are made more expensive still because union membership is heavily skewed toward older workers. They are thus very likely to get hit by the Cadillac tax, which takes effect in 2018.
And the third problem is that Obamacare undercuts one of the key benefits of being in a union. Take a low-wage service worker who is currently insured through her union’s multi-employer plan. If she went to work for a nonunion shop, she could get a substantial wage hike, use part of it to buy a heavily subsidized exchange policy, and still be better off. As I heard one expert say, Obamacare turns health insurance from an organizing tool to a disorganizing tool.
No wonder the unions are mad. What’s amazing is that they supported Obamacare with just vague assurances from the Barack Obama administration that it would fix everything later.
Yeah. My heart bleeds for the Unions. Do you see what looks like a period at the end of the last sentence? It really is the world’s tinyest violinist playing the world’s saddest song on the the world’s tinyest violin.
But look for our lawless President, maybe just after the November-2016 elections, to just wave his wand and lift the Unions’ burden. And if you want to read the whole thing, click HERE.