Democrats' plan in Michigan would allow union to skim millions in dues from health care workers
The Michigan caregiver laws are set to take effect early in 2025
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The state of Michigan is on track to allow for the unionization of home health care workers, including caregivers aiding ill and infirm family members, starting next year in a move that critics say would hurt caregivers.
The Democrat-controlled Michigan Legislature passed legislation that was signed by Democratic Gov. Gretchen Whitmer to grant collective bargaining rights to home health care workers. The law, which takes effect at the end of March 2025, would allow the Services Employees International Union (SEIU) to skim dues from funding provided to caregivers under the state's Home Help program.
Under the law, the roughly 35,000 caregivers in the state of Michigan would be required to attend a training session that would involve the union pitching them on membership. Though the caregivers aren't required to join the union, they may not be informed of their right to opt out in the course of that training session, which is required as a condition of receiving funds from the Home Help program.
"Here's the little trick that they're pulling: They're making all 35,000 people that do this – and remember, these are people that are caring after extremely sick people, perhaps wheelchair-bound, perhaps unable to travel – and they're making them come and do training on shampooing, feeding, toileting," Patrick Wright, vice president for legal affairs at the Mackinac Center, told FOX Business in an interview. "At this training, the unions get to lock them in a room for half an hour to try and get them to sign up and join the union."
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Michigan Gov. Gretchen Whitmer and Democrats in the state legislature enacted the caregiver laws that allow for collective bargaining and dues skimming. (Bill Pugliano/Getty Images / Getty Images)
The law is similar to a prior dues skim arrangement that amounted to 2.75% of funds for unionized home care workers that was in effect from 2005 to 2012, which ended when the state's health department dissolved the arrangement and the legislature ended caregiver unionization. Michigan voters also rejected a 2012 ballot measure backed by the union that would've allowed caregivers to collectively bargain.
After the legislature voted this fall to pass the bills bringing back the dues skim, Whitmer said that they will "finally restore the right of more than 30,000 independent provider home health care workers to collectively bargain for better pay and benefits and start to build out the caregiving infrastructure we need to help Michigan families and care for our neighbors who need day-to-day support."
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A home care worker in Michigan rallies to restore union rights and demand an investment that makes it easier for seniors and people with disabilities to get the home care services they need in Lansing, Michigan, on March 13. (Scott Legato/Getty Images for SEIU / Getty Images)
Wright noted that funding for the state's home care subsidy program rose significantly during the period where caregivers were not unionized, undercutting the argument that they need collective bargaining to get more resources.
"In the 10 years that we had no mandatory union in Michigan, the funding of this program doubled from $300 million to $600 million," Wright said, adding that the increase was still more than $100 million after accounting for inflation. "The idea that you have to have a union in order for there to be changes in benefits to this program has been belied by one decade's worth of experience."
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Home caregivers in Michigan would be required to attend the training to receive state funds as well as hearing a pitch from the union. (iStock)
He went on to note that the SEIU could rake in millions of dollars from the arrangement that it didn't have access to prior to the law's enactment.
"Obviously, the union officers benefit because they get more money. The other entity that benefits is probably politicians — political spending of the SEIU health care went into the toilet in 2012," Wright said. "Now, if they get 2.75% of $600 million, you're looking at $13 million and change a year… that presumes all of these people would sign up, that clearly isn't going to be the case."
Wright explained that while the Michigan Legislature was drafting the bills, an amendment that would've required the unions to inform caregivers about a pair of U.S. Supreme Court rulings that prevent home caregivers from being compelled to pay union dues and allow public sector workers to opt out of paying union dues.
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However, he said there are concerns the union won't inform caregivers of those rights in the course of the training session where they're encouraged to join the union.
Wright went on to say that the union will have to get 30% of the 35,000 caregivers to sign off on requesting a union election, and if they win, would allow them to sign up members. He explained the Mackinac Center plans to continue to oppose the unionization push.