Barry University
July 16, 2012
The current and future effects that the healthcare reform will have on collective bargaining agreements varies; before we examine the future affect of healthcare reform, it will be beneficial to explore the current effect of both healthcare reform and collective bargaining agreements. Collective bargaining is an activity whereby union and management officials attempt to resolve conflicts of interest by exchanging commitments in a manner intended to sustain and possibly enrich their relationship (Holley, Jennings, Wolters, 2012). Collective bargaining is a special form of interdependent social interaction, in which the attainment of desired outcome by one party is dependent on the behavior of another party (Holley, Jennings, Wolters, 2012). Currently, millions of American’s have healthcare insurance through their employers which are part of their benefit plan. Many of these plans have deductibles and clauses such as age limits for dependents, pre-existing condition clauses and lifetime maximum amounts. With the new healthcare reform many of the present clauses have been or will be eliminated which will have significant consequences for employer and employee contracts which will engage in the need for collective bargaining agreements. With the implementation of healthcare reform laws, future collective bargaining agreements will be re-evaluated, re-negotiated or enforced stronger. In an article, Labor Issues Impacted by Healthcare Reform written by Harry R. Stang, given analysts’ predicts that healthcare premiums will continue to rise, some employers have begun to assess the practical, economical and legal issues involved in the termination of healthcare coverage. These issues are particularly complex for employers with collective bargaining agreements that mandate contributions to health and welfare plans (Stang, 2010). This analysis
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