Universal Coverage – A Call for Action

David T. Barry
Chairman, Joint Labor Management Committee
of the Retail Food Industry – U.S.
“Universal Coverage – A Call for Action”
National Coalition on Health Care Leadership Summit
The Carter Center, Atlanta, Georgia
January 26, 2000

I’D LIKE TO BRING A DIFFERENT PERSPECTIVE TO THE HEALTH CARE CRISIS , WHICH BY THE WAY SHOULD NOT EXIST IN THE YEAR 2000 OR IN THE GREATEST, MOST ADVANCED COUNTRY IN THE WORLD.

THE JOINT LABOR MANAGEMENT COMMITTEE OF THE RETAIL FOOD INDUSTRY BRINGS LABOR AND MANAGEMENT TOGETHER TO RESOLVE THEIR DIFFERENCES AND FIND WAYS TO WORK TOGETHER, ALTHOUGH OFTEN THEIR RESPECTIVE PRIORITIES CONFLICT WITH ONE ANOTHER. MANAGEMENT HAS TO ANSWER TO THEIR SHAREHOLDERS AND THE UNIONS TO THEIR MEMBERS.

OVER A MILLION EMPLOYEES WHO WORK IN THE RETAIL FOOD INDUSTRY BELONG TO UNIONS. THE UNITED FOOD AND COMMERCIAL WORKERS AND THE TEAMSTERS ARE THE TWO LARGEST PRIVATE SECTOR UNIONS AND ALONG WITH THE BAKERY WORKERS THEY REPRESENT OVER 3 MILLION MEMBERS.

WHEN YOU OR YOUR FAMILIES SHOP FOR GROCERIES AT SAFEWAY OR VON’S IN CALIFORNIA, STOP & SHOP IN NEW ENGLAND OR GIANT FOODS IN WASHINGTON. AT A&P;, DIERBERGS, OR SCHNUCKS,– OR DOMINICKS IN CHICAGO—–OR KROGER FROM THE EAST TO THE WEST COAST, THESE ARE ALL UNION COMPANIES. THE WORKERS IN THEIR WAREHOUSES THAT SEND GROCERIES TO THEIR STORES IN TRUCKS DRIVEN BY TEAMSTERS. WORKERS AT SUPER-VALU, THE LARGEST WHOLESALE GROCER IN THE NATION.

THESE WORKERS MAKE DECENT PAY, HAVE PENSION PLANS AND THE COMPANIES PAY FOR THEIR HEALTH INSURANCE—EXCELLENT HEALTH INSURANCE– FOR THEM AND THEIR FAMILIES. HOSPITALIZATION, PRESCRIPTION COVERAGE, DENTAL, OPTICAL. 80% TO 90% OF THESE WORKERS QUALIFY FOR THEIR HEALTH INSURANCE.

RESPONSIBLE EMPLOYERS PAY FOR THE KIND OF HEALTH CARE THAT SHOULD BE AFFORDED ALL AMERICAN WORKERS.

WELL, THAT’S NICE – THAT’S THE RIGHT THING TO DO. WE PROBABLY AGREE SO FAR?? IF THAT WAS WHERE THE STORY ENDED THEN WE COULD START TRYING TO FIND THE SOLUTION TO THE ESCALATING COSTS AND THE SERIOUS PROBLEMS THAT EXIST WITH “QUALITY”. BUT THERE IS A DIFFICULT PROBLEM FOR RESPONSIBLE EMPLOYERS. PROVIDING GOOD HEALTH INSURANCE FOR THEIR EMPLOYEES AND FAMILIES HAS BECOME A MAJOR PROBLEM THAT IS AT A DIFFICULT STAGE AND GETTING WORSE FAST.

THE PROBLEM IS THE RE-NEWED ESCALATION OF COSTS AND A WIDENING GAP BETWEEN COMPANIES AND THEIR COMPETITION—UNFAIR COMPETITION!!

THEY HAVE COMPETITORS WHO GAIN AN UNFAIR ADVANTAGE BY PROVIDING FEWER EMPLOYEES WITH LESS COVERAGE AT THE SAME TIME THEY’RE REQUIRED TO PAY SUBSTANTIAL CO-PAYS.

TAKE WAL-MART FOR EXAMPLE: THEY HAVE ABOUT 800,000 EMPLOYEES IN THE U.S. ONLY 38% PARTICIPATE IN THE COMPANYS’ HEALTH PLAN. WHY?

A SUBSTANDARD PLAN – VERY HIGH CO-PAYS – LOW WAGES (PEOPLE CAN’T AFFORD THEIR SHARE

WAL-MARTS’ RESPONSE: AND I QUOTE “THOSE WHO CHOOSE NOT TO PARTICIPATE [IN OUR BENEFIT PLANS] USUALLY GET THEIR HEALTH CARE BENEFITS FROM A SPOUSE OR THE STATE OR FEDERAL GOVERNMENT.”JAY ALLEN.

SO NOW THE STATE OR FEDERAL GOVERNMENT SHOULD FOOT THE BILL FOR THE LARGEST RETAIL OPERATOR IN THE WORLD. THE DARLING OF WALL STREET? AT WHOSE EXPENSE? WAL-MART OPENS A SUPERCENTER DOWN THE STREET FROM A RESPONSIBLE FOOD STORE OPERATOR WHO PAYS THE COST OF ALMOST ALL OF THEIR EMPLOYEES HEALTH CARE AND THEY MUST COMPETE WITH SOMEONE WHO HAS NO COSTS FOR 2/3RDS OF THEIR WORKFORCE. TALK ABOUT PUNISHING THE GOOD GUY!

IN ADDITION, RESPONSIBLE EMPLOYERS LIKE SAFEWAY AND OTHERS, PAY HIGHER COSTS FOR HEALTH CARE BECAUSE THE BILLS FOR THE UN-INSURED GET SHIFTED OVER TO THOSE WHO HAVE COVERAGE. IN WAL-MARTS CASE THEIR COMPETITORS ARE SUBSIDIZING THEIR UN-INSURED WORKERS. WHAT A GREAT DEAL FOR THE BAD GUY!

A DOUBLE WHAMMY FOR THE GOOD GUYS!

HOW CAN I BE A RESPONSIBLE CORPORATE CITIZEN AND DO THE RIGHT THING AND MY REWARD IS AN UN-LEVEL PLAYING FIELD WITH AN UNFAIR HEALTH CARE SYSTEM!!

THIS CURRENT PROBLEM WILL GET WORSE AND SOON. AS COSTS GO UP THE GAP WIDENS AND THE PRESSURE BUILDS TO CONSERVE OR BETTER PUT, CUT BACK!

DO THEY TRY AND FORCE EMPLOYEES TO PAY MORE OF THEIR HEALTH CARE COSTS, AND REDUCE THEIR EXPENDABLE INCOME?? – OR -CUT BENEFITS AND COVERAGE CAUSING MORE EXPENSE TO THE WORKFORCE AND PROBLEMS THAT OCCUR WHEN PEOPLE GO UNTREATED.

IN THE UNIONIZED SECTOR BOTH SIDES WILL HAVE NO CHOICE: COMPANIES WILL HAVE TO TAKE A STAND–

COMPETITORS WITH LESS OR NO COVERAGE WILL CONTINUE TO GAIN GREATER ADVANTAGE THROUGH LOWER COSTS AT THE EXPENSE OF ITS’ WORKFORCE. RESPONSIBLE EMPLOYERS WILL HAVE NO CHOICE AT THE BARGAINING TABLE. THEY WILL REFUSE TO PAY THE HIGHER COSTS THAT WIDEN THE COMPETITIVE DIS-ADVANTAGE AS WELL AS THE COST SHIFTING THAT RESULTS IN SUBSIDIZING THE UN-INSURED OR UNDER-INSURED WORKER.

THE UNIONS REPRESENTING THEIR WORKFORCE WILL ALSO HAVE NO CHOICE BECAUSE THEIR MEMBERS WILL DEMAND THE HEALTH COVERAGE THEY’RE ACCUSTOMED TO RECEIVING. WITH A UNIONIZED WORKFORCE, HEALTH CARE RATES RIGHT UP THERE WITH WAGES.

THEY WILL FIGHT ANY REDUCTION, THROUGH THEIR UNION AND THE END RESULT WILL BE MORE DISPUTES, STRIKES AND ALL THIS BECAUSE OF A FLAWED HEALTH CARE SYSTEM THAT HAS CREATED AN UNFAIR, UN-LEVEL PLAYING FIELD FOR FAIR MINDED EMPLOYERS, THEIR UNIONS AND THEIR WORKERS.

A FAIR AND EFFECTIVE HEALTH CARE SYSTEM BELONGS RIGHT UP THERE WITH SOCIAL SECURITY AND MEDICARE.

WHILE THIS COMPETITIVE PROBLEM CAUSED BY THE PRESENT SYSTEM CALLS OUT FOR EMPLOYER BASED HEALTH CARE AND UNIVERSAL COVERAGE IN THERETAIL FOOD INDUSTRY, THIS PROBLEM EXISTS IN INDUSTRIES REPRESENTING MILLIONS MORE WORKERS WHERE FAIR MINDED EMPLOYERS, DOING THE RIGHT THING, ARE AT A DISADVANTAGE.

A MAN ONCE SAID YOU MUST PLANT A MILLION TREES TO BUILD A FOREST. SOMEONE REPLIED THAT IT WOULD TAKE A LONG TIME. THE MAN THEN SAID WE’D BETTER GET STARTED OR WE’LL NEVER HAVE A FOREST.

THE NATIONAL COALITION ON HEALTH CARE HAS BEEN PLANTING TREES SINCE 1990 WE BETTER ALL START PLANTING BECAUSE THE PEOPLE WHO WANT TO CUT DOWN THESE TREES ARE CLOSE BY.

HENRY, YOU AND YOUR STAFF, THE CO-CHAIRS AND MEMBERS OF THE COALITION HAVE BEEN DOING A GREAT JOB. KEEP UP THE GOOD WORK.

THANK YOU VERY MUCH