Unions Make Obama An Offer He Can't Refuse

It’s amusing to watch President Obama try to stick it to his friends in organized labor by proposing a tax on union-negotiated health care benefits.

If it weren’t for the fact that the tax proposal would have a devastating effect on the American economy, the situation would be downright hilarious.

On Monday, a group of top leaders from the American labor movement gathered at the White House to share their concerns with the president.

The irony of the discussion was delicious. During the campaign, Obama and the Democratic Party (including the unions) attacked John McCain for suggesting that health care benefits should be taxed as income.

Strangely, that’s what Obama is now proposing (above a certain level) and union bosses aren’t happy because it would impact the lush benefits they’ve successfully secured through bare-knuckle negotiations.

Interestingly, Rich Trumka, former coal miner and now president of the AFL-CIO, suggested that the president could be unwittingly arranging a replay of the 1994 mid-term election, when labor voters stayed home in droves and the Democrats lost control of Congress. From the Associated Press:

“A bad bill could have that kind of effect, where people sit at home,” Trumka told reporters. “Politicians who think that working people have it too good – too much health care, too much Social Security and Medicare, too much power on the job – are inviting a repeat of 1994. Our country cannot afford such a repeat.”

Harold A. Shaitberger, president of the firefighters’ union, made “similarly threatening remarks,” in the words of the AP.

“The president’s support for the excise tax is a huge disappointment and cannot be ignored,” Shaitberger said. “If President Obama continues to support it and signs a bill that include the excise tax on workers, we will hold him accountable.”

The Wall Street Journal listed the attendees of the White House meeting:

• AFL-CIO’s Trumka
• Anna Burger of Change to Win [and SEIU vice president]
• Dennis Van Roekel of the National Education Association
• Leo Gerard of United Steelworkers
• Joe Hansen of the United Food and Commercial Workers International Union
• Ed Hill of the International Brotherhood of Electrical Workers
• Jim Hoffa of the Teamsters
• Randi Weingarten of the American Federation of Teachers
• Andy Stern of the Service Employees International Union
• Terry O’Sullivan of the Laborers’ International Union of North America
• Gerry McEntee of the American Federation of State, County and Municipal Employees
• Larry Cohen of the Communications Workers of America

The people on that list wield a great deal of political power, and Obama is clearly angering them at his own peril.

It’s shocking, but not unprecedented, for organized labor to threaten to withhold political support from a sitting Democratic president. But its temper tantrum will likely produce the desired result – dropping the tax proposal.

If not, the unions may just poke a few more holes in the already sinking Democratic ship. At least Trumka, Stern, Weingarten and Van Roekel can enjoy their martinis and fine cigars during the slow, painful ride to the bottom.