From the Wall Street Journal.
The roll out of President Obama’s health care reform package was always going to be tricky, with vehement opposition from his political opponents and pushback from employers large and small. But after announcing last week that penalties for companies failing to comply with the law will be delayed by a year, the Affordable Care Act has a new, high profile set of dissenters: Unions.
The leaders of three major U.S. unions, including the highly influential Teamsters, have sent a scathing open letter to Democratic leaders in Congress, warning that unless changes are made, President Obama’s health care reform plan will “destroy the foundation of the 40 hour work week that is the backbone of the American middle class.”
If that’s not bad enough, the Affordable Care Act, if not modified, will “destroy the very health and wellbeing of our members along with millions of other hardworking Americans,” the letter says.
Here’s one part from the letter than I think is worth posting:
When you and the President sought our support for the Affordable Care Act (ACA), you pledged that if we liked the health plans we have now, we could keep them. Sadly, that promise is under threat. Right now, unless you and the Obama Administration enact an equitable fix, the ACA will shatter not only our hard-earned health benefits, but destroy the foundation of the 40 hour work week that is the backbone of the American middle class.
[..]First, the law creates an incentive for employers to keep employees’ work hours below 30 hours a week. Numerous employers have begun to cut workers’ hours to avoid this obligation, and many of them are doing so openly. The impact is two-fold: fewer hours means less pay while also losing our current health benefits.
Of course, when the unions were busy lobbying for the passage of Obamacare, conservative voices were talking about all of these defects in the law, and more besides. But the unions weren’t listening. Labor unions just don’t understand economics, and that’s why people need to be careful about taking their advice on economic issues.