Unions Starting To Feel The Pinch Of ObamaCare

Updates

February 1, 2014: union labor officials say President Obama betrayed them in health-care rollout -- The Washington Post. I'm shocked! I'm shocked! The unions believed another honest Abe from Chicago. LOL.

January 31, 2014: the contract was approved. The Bismarck Tribune is reporting:

The contract includes 3 percent pay raises and a company-matched 401K. The 3 percent has been the standard increase for utilities employees across the state, ...

In exchange, workers have agreed to pay 15 percent to 20 percent of health care costs, Keslch said during the interview.

Keslch said in the interview Minnkota was the last power company still paying the full cost of health care for employees. Others companies’ unionized employees pay a portion of health care. All of Minnkota’s other employees across the state were paying a portion of their health care already. 

Thank you, Mr Obama for bringing the reality of health care costs to the union.

Original Post

Technically, this has absolutely nothing to do with ObamaCare ... yet. But ObamaCare provides the top cover that was needed by corporations to do this. The Bismarck Tribune is reporting on contract negotiations at MinnKota:

Kelsch said the most concern was with health care. Depending on their wages, employees will contribute 15 to 20 percent of the cost of their health care coverage. In the past the employees at the plant had not paid any of their health care costs.

Kelsch said Minnkota was the last power company still paying the full cost of health care for employees. Others, like Basin Electric Power Cooperative and Great River Energy employees, also paid a portion of health care. All of Minnkota’s other employees across the state were paying a portion of their health care already.

Kelsch said the change is still going to hit employees hard because they are going from zero cost. For example, the cost of a family plan will go from nothing to $275 a month.

A 401K with 2 percent company matching was added to the offer, something Minnkota hasn’t had for plant employees in the past. The company’s two retirement offerings will go unchanged.

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A Note to the Granddaughters

The company my son-in-law works for offers a similar company-wide 410K matching program but with no limitations placed by the company (limitations placed by the IRS, however). I feel so strongly about the importance of a retirement program, I told my daughter I would cover (or "match") whatever he puts into their 401K by sending an equal amount to them each month. They signed up but never told me. I had to ask. It's a win-win for all of us. I feel good, and they have an additional retirement program. My first check goes to them next month.