Union Pension Problems Are Driving Obama Policies

From YID with LID:

• A large contributor to the bankruptcy of Chrysler and General Motors was the liability the Auto Giants owed to the UAW pension plans. In the buyout deal, the President gave the unions more than their fair share of the two companies at the expense of the primary investors who legally should have received more.

• In September the POTUS announced that it would impose a tariff of 35 percent on $1.8 billion of automobile tires imports from China, angering the country holding a large chunk of our bonds, acting on a petition from one of his major constituencies, the United Steelworkers union.

• Unions have been the fiercest proponents of the Obamacare have been the Unions. Andy Stern, head of the SEIU has been to the White House more than any other visitor. Some commentators have reported that's Stern's constant trips to the White House is due to his participation in reviewing the basic components of the health care bills as they are developed by the houses of congress. Why is this particular legislation so important to the unions? Because the unions pensions plans are woefully underfunded. The hope is once Obamacare is passed union workers will eventually be shoved over to the co-ops (or an eventual government option), freeing up union cash to help with the pension program.

• As of this very moment the administration is working on a plan to give preference to Union Shops for ALL federal contracts. The proposal, dubbed the “High Road Contracting Policy,” was first reportedby The Daily Caller in early February. According to multiple sources familiar with the discussions, the proposal would give preference to government contractors that pay their hourly workers a “living wage” and provide additional benefits such as health insurance, employer-funded retirement plans and paid sick leave. In other words, they will be "cutting out" the non-union shops and raising the price of jobs, and increasing the federal deficit.