Tuesday, May 27, 2014

May 27, 2014.

New Costs From Health Law Snarl Union Contract Talks

"How many fingers am I holding up, Winston?"

Disputes between unions and employers over paying for new costs associated with the Affordable Care Act are roiling labor talks nationwide.

"I don’t know. I don’t know. You will kill me if you do that again. Four, five, six — in all honesty I don’t know."

Unions and employers are tussling over who will pick up the tab for new mandates, such as coverage for dependent children to age 26, as well as future costs, such as a tax on premium health plans starting in 2018. The question is poised to become a significant point of tension as tens of thousands of labor contracts covering millions of workers expire in the next several years, with ACA-related cost increases ranging from 5% to 12.5% in current talks.

"Better," said O’Brien.

In Philadelphia, disagreement over how much workers should contribute to such health-plan cost increases has stalled talks between the region's transit system and its main union representing 5,000 workers as they try to renegotiate a contract that expired in March.

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