Coalition of Large Unions Opposes Schwarzenegger-Nunez Bill, ABX1 1

Sen. Leland Yee also opposes bill in Sacramento press conference

A broad coalition of leading California unions - joined by two prominent community groups - today announced their opposition to the deeply flawed healthcare bill, ABX 1 1, the deal brokered by Gov. Arnold Schwarzenegger and Assembly Speaker Fabian Nunez.

The bill faces a critical test in the Senate Health Committee on Wednesday. One committee member, Sen. Leland Yee (D-San Francisco), joined the labor press conference and announced his opposition to the bill.

Strong critiques of the bill were presented today by leaders of the Teamsters, United Food and Commercial Workers, Communication Workers of America, California School Employees Association, International Longshore and Warehouse Union, Office and Professional Employees, California Nurses Association/National Nurses Organizing Committee, League of Women Voters, and the Gray Panthers. Among others opposing the bill are the Machinists and Engineers and Scientists unions, and California Church IMPACT, legislative arm of the California Council of Churches.

In introductory remarks, CNA/NNOC legislative director Donna Gerber called ABX 1 1 "an insurance company bill, a bill that benefits insurance companies over everybody else. For the first time Californians will be required to buy a product with no price limitations or no definitions of what they get for that price."

"'All of the burden for increased costs will fall on individuals' while the Franchise Tax Board will put 'a lien on your house and garnish your wages' to pay for it," said Barry Broad, director of the California Teamsters Public Affairs Council. "Forcing people to go into bankruptcy for something they cannot afford is not universal healthcare."

George Landers, executive director of the United Food and Commercial Workers Western State Council, said the bill would provide a disproportionate benefit for "major employers like Wal-Mart, who will not have to pay any more than they presently do," and allow thousands of their employees "to receive state subsidies for their health care. The idea that you are going to allow the largest employers to get a tax break for health care is absolutely ridiculous."

"This is a bad bill," said Chuck Mack, President of Teamsters Joint Council 7. "Individuals will pay more and more and get less and less health care. We will do everything we can to stop it."

Clyde Rivers, past president of CSEA, noted that for many of their school employee members, the cost of health insurance already is "greater than their take home-pay," and since ABX 1 1  offers “nothing in cost containment” the bill provides no protections to reverse that development. Further, the legislature and governor will be able to say "they’ve taken care of the problem."

Sen. Yee, whose vote could be critical, cited the "struggle of the working poor" to meet their bills while "the state of California is saying you will have to pay for open ended healthcare costs. There is no way I am going to support" a bill that could "literally put people out on the street" or force them to choose between pay for their health care or their housing costs.