Nonsequitur: Obamacare Making Union-Management Negotiations Difficult

May 27, 2014

As more and more of the ACA mandates and taxes are taking hold, contract negotiations are frequently running into impasses over increasing health care costs and who pays them.

Jim Ray, a lawyer who represents the Laborers International Union of North America in benefits negotiations, said these provisions have increased construction-industry health plans’ costs by 5% to 10%, and already resulted in lower wages for some laborers. He said employers are frequently seeking contract language to cap their own liability for future cost increases from the law. “When we first supported the calls for health-care reform, we thought it was going to bring costs down,” he said.

These negotiating difficulties are being seen across the country and across industries. More information here.

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