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  • Unions Using Obamacare to Punish Small Business

    When does Washington consider a successful small business a problem to be dealt with? When that small business successfully competes against unionized firms. Then it needs to be tied down with expensive red tape until it is no longer so successful.

    Say what? Members of Congress routinely extol the praises of small businesses as the engine of job creation – especially in these difficult economic times. This is standard practice on Capitol Hill – small businesses do not have the same resources as large ones, and they often cannot afford to comply with federal mandates. Rather than put them out of business Congress exempts them from expensive regulations.

    The Senate health care bill also gives small businesses an out. The bill fines businesses $750 for each employee if the company does not provide more expensive “qualifying” health coverage to all their workers. However, companies with less than 50 workers do not have to pay this fine.

    Or at least, that was how the bill was written. A small provision slipped into the bill at the last minute changes that threshold for the construction industry. Now any construction company with five or more workers would have to pay the fine. With a few paragraphs in a 2,074 page bill the Senate gutted the small business exemption for construction companies.

    Construction workers have born the brunt of the recession with the collapse of the housing bubble, accounting for 1.5 of the 7 million jobs lost since December 2007. Now the health care bill forces a heavy regulatory burden on small construction business.

    Why would the Senate kick small construction contractors when they are down?

    Special interests, why else? Construction unions hate the competition from small, mostly nonunion contractors.

    The health care bill will make providing “qualifying” healthcare coverage significantly more expensive. It forbids lifetime limits on coverage and requires insurers to cover children on their parent’s plans until they are 25. Unions estimate these provisions will raise the cost of health coverage by an additional $1,000 a year.

    They do not want the law to allow small businesses to provide less generous health benefits and then underbid them for construction jobs. They want small business to work with the same expensive regulations and taxes they do.

    Of course, these regulations and taxes burden small businesses more heavily because they have less money to pay for them. Instead of getting more generous benefits many workers at small construction companies will lose both their jobs and their health benefits.

    That that fact did not stop the union movement should not surprise anyone. Unions are cartels – they attempt to raise their members’ earnings by restricting competition. Unions can only win above-market wages when they can prevent nonunion workers from competing against them for jobs. By using the law to shackle their small business competitors the union movement can prevent them from winning bids for projects. That is great for unions – but not for the small business employees.

    Normally Congress would stand up for small business employees. But the labor movement is no ordinary special interest. Unions spent hundreds of millions of dollars to elect Obama and the current liberal Congress. So when construction unions asked the Senate to kneecap their small competitors, Majority Leader Reid was happy to comply.

    Posted in Obamacare [slideshow_deploy]

    21 Responses to Unions Using Obamacare to Punish Small Business

    1. Ozzy6900, CT says:

      Small Business represents Capitalism. They compete, invest and employ workers in order to make a product or provide a service and make a profit (uh-oh, there's that dirty word again)

      Unions represent Socialism. Equal pay for the same job instead of paying for what a person is worth and/or what a person produces. Union people don't go the extra mile because why should they? If the guy next to me works harder than me, it doesn't matter because we both make the same pay. Unions force business to reduce their profit in order to meet demands of the union. Unions typically out price the worker forcing the company to look elsewhere for cheaper labor.

      And folks, I am a forced union member so I know what I am talking about!

    2. Steve Rico says:

      Im You Guy!

      What Do You Guys Want!?

      Only Personal Tretment!

      One By One!

      I'm Transparent!

      I Don't Dress Color's

    3. Bobbie Jay says:

      That's exactly what the American government EVIL is doing. Targeting those of self worth to replace with those of none.



    4. Bobbie Jay says:


    5. Jon - Ohio says:

      Work too hard and you are in trouble with the union. I know as I got called on the carpet for doing just that. AND I wasn't really killing myself. Productivity is what helps businesses succeed. Then too we have the government that imposes taxes that discourages. Look at manufacturing in Ohio, a steady downhill slide (starting in the 1950's). I had a friend that took a job with a firm in Chicago (time/study consultant) and could live anywhere he wanted, just as long as he was near an airport, he was told. Great he said, he would move back by his elderly parents. Where do they live? Ohio. Anywhere but Ohio, due to their tax structure.

      They talk about brain drain here, but maybe it's just folks trying to get away from those incentive killing tax rates.

      What's the new "health" plan going to cost a small business? I pencilled in some numbers, based on what I've read, and it looks that my health care will be 36% of my current income. Pleas remember that they will still be taking income tax (feds, state, and city), FICA and then my car and house will have to be insures as well.

      Looks like the majority of my income is going out and not benefiting me or my family.

      How's that hopey, changey thing working for you?

      Thank you Obama and crew!

    6. Tim Az says:

      Unions punish everyone equally. Look at the damage they were able to inflict on GM and Chrysler. They can destroy big business just as easily as small business. We have also seen the damage they can do to a whole country by destroying representation of the American citizen. The unions constantly demand higher wages that includes benefits than market forces allow. Resulting in artificially high prices on products that are made buy union laberors. This coupled with excessive govt. regulation and slip and fall law suits. Are the reason America can no longer compete in the manufacturing sector here or abroad. Third world countries do not destroy their manufacturing sector's the way America has. There may be good news. Unions are no longer popular in America so they are seeking membership in other countries. If we can keep them from obtaining a death grip on American labor and our government. They will certainly infest other countries to feed their hunger for easy money. This will render third world manufacturing sectors unable to compete in the world market. Not to worry lawyers will always be here willing to sue on anyones behalf for anything they can get before a judge.

    7. carque9, texas says:

      big govt, big business killing unions.

      vote em all out.

    8. Resident from Detroi says:

      Small construction companys usually do better quality work in other words high quality workmenship compared to larger companys. I have had experience with this. Smaller companies want to please their customer and recieve more work from positive word of mouth. Big government and Unions kill quality work. Unions and government always support incompetence. The dumbing down and trashing of America.

    9. Small Business Owner says:

      I was listening to Colin Cowherd on ESPN radio one day and I don't remember what he was talking about, but he made a great statement about Unions. He said "Unions don't inspire the good worker, but they protect and reward the bad worker." That statement pretty much sums it up.

    10. Pingback: Obamacare Full of Favors for Big Labor | The Foundry: Conservative Policy News.

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    15. CM - 79 says:

      The comments are from very unknowing people. As a Union member – I work hard and do go the extra mile. as far as quality goes, Union workers do the best quality work, they hav ethe best training and are 17% more productive tha non-union workers. They just don't believe a Contractor should win jobs by continuley lowering the employees wages – who is dumbing down? I say you are

    16. CM - 79 says:

      Unions are not socialist, we are hard working American Patriots with backbone, something you are missing.

      If we don't work hard we don't have a job!

    17. jim says:

      When is Obama going to be honest with the American people and tell us how many small companies are going to be driven out of business with his bogus union bill …A bill that inwhich if you're not a union company you can no longer bid on government projects…….. Now how many companies have went under because of this idiots union payback bill????

    18. CM - 79 says:

      What Bill are you talking about?

      Union workers are 17% more productive than low paid non union workers

    19. Pingback: Unions Using Obamacare to Punish Small Business » The Foundry | All Topics Blog

    20. Install Business Sof says:

      Awesome information

      Great business info, definately following this site from now on.

    21. Pingback: Brand New Cadillac Will Get The Excise Tax « Around The Sphere

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