Hostess, Detroit… Now NYC?

In what may be my tongue-in-cheek favorite story of the week, the unions in New York City are blocking the cities attempt to find a way to reduce health care costs for its 500,000 employees and retirees.  In the last 10 years, cost for the city have doubled to $6.3 billion dollars per year.   Thats an average of $12,600 per employee, in case your calculator gives you that little “E” message when the numbers are too big.

Did the Municipal Labor Committee not read the story about unions bankrupting twinkie-land?  Those bakers all lost their jobs, although we still have twinkies.  Did they not read the stories about the bankruptcy of Detroit over the last month?  Admittedly, poorly managed big business and municipal government failures had alot to do with reducing housing values in Detroit (you can buy a house there reportedly for $7,000, ammunition not included)?

While the unions supported Mr. Obamas Health Care Reform platform and his reelection, that may change in 2018 when the “Cadillac Tax” kicks in, notably after the current President leaves office.  The Cadillac Tax is designed to prevent exactly what the unions want – an elitist, high-priced, superrich insurance policy.  The Cadillac Tax will cost the city hundreds of millions of dollars (it already qualifies) when taxes kick in.

While they hide behind their apparent non-inclusion in the RFP process for the health insurance plan, the pattern is pretty simple to see.  Unions all over the country have morphed sadly from being an organization that “protects” workers and improves their working conditions, into a gimme-more mentality that protects bad workers from being fired, and cannot see the big picture.  Unions have a place with some employers, but they have to make sure the employer can make a profit while meeting their demands.

We all saw what happened to a mislead GM with $55/hour assembly line workers making HumVees…