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Tag: “COBRA”

Progress towards protecting American workers

By Kate Thomas on September 8, 2009 11:21 AM

Labor Day is a time to reflect on the achievements of the American worker and our nation's commitment to helping all families pursue the American Dream--especially now that many are facing difficult times, as the result of the recession and the anti-worker agenda carried out by the previous administration. In a short period of time, President Obama and the 111th Congress have made progress to undo many policies that have harmed our nation's workers; showing time and time again that they stand on the side of working families.

Here are some of the strides made so far on behalf of American workers:

Lilly Ledbetter Fair Pay Act: The first major piece of legislation President Obama signed at the end of January ensures that women and other workers who receive discriminatory pay have access to a remedy. The new law reversed the May 2007 Supreme Court decision in Ledbetter v. Goodyear and restored prior law which treated each discriminatory paycheck received by a worker as a violation of the Civil Rights Act.

Affordable Health Coverage for Laid-off Workers: A provision in the Recovery Act will assist 7 million people laid off in this recession with the cost of their health insurance coverage, who would otherwise face paying a substantial monthly amount to keep it. People who were laid off between from their jobs between 9/1/08 and 12/31/09 pay only 35 percent of their COBRA premiums and the remaining 65 percent is reimbursed to the coverage provider through a tax credit.

Increasing the Minimum Wage: On July 24th, the national minimum wage increased by 70 cents per hour--from $6.55 per hour to $7.25 per hour-the final of three increases to take effect under legislation enacted by the Democratic Congress. "[The] minimum wage increase is an important step in strengthening our economy by putting $1,400 a year in the pockets of 13 million hardworking Americans who make the Federal minimum wage," said SEIU Secretary-Treasurer Anna Burger.

Increasing Wage Theft Enforcement: As a result increased funding in the Recovery Act, the Department of Labor announced that the agency plans on hiring 250 investigators for its Wage and Hour Division. A Government Accountability Office investigation found many investigations of wage theft, in which workers are not paid minimum wages or not paid at all, were inadequately handled by the Bush administration's Wage and Hour Division, which had been starved of staff and resources.

Worker Protection Programs: In December 2008, the American Worker Project at the Center for American Progress released a report noting that "one of the hallmarks of President George W. Bush's administration has been its failure to enforce laws designed to protect ordinary Americans," particularly the Labor Department's "inadequate enforcement of important workplace protections." The Obama administration has pushed to clean up the mess, requesting a 10 percent budget increase for worker protection programs.

Stopping Last-Minute Bush Proposal to Weaken Worker Health & Safety Protections: The Department of Labor announced that they will withdraw a Bush era proposal that would have dramatically weakened future workplace health and safety regulations and slow their enactment. (Announced May 15, 2009)

Can you think of any Congressional accomplishments made on behalf of workers that I've left off this list? If so, please leave your feedback in the "Comments" section below.

Tags: american dream, american workers, bush administration, cobra, congress, department of labor, fair pay, health and safety, health insurance, labor day, laid-off workers, lilly ledbetter fair pay act, minimum wage, obama administration, president obama, wage and hour division, wage theft, wage theft enforcement, workers, workplace health and safety regulations, workplace protections

Helping Laid-Off Workers Afford Health Coverage

By Kate Thomas on March 26, 2009 3:19 PM

Laid-off workers can get much of their healthcare insurance paid for through a new law, reports the Metro Washington Council's Community Services Agency (CSA). "The American Recovery and Reinvestment Act of 2009 (ARRA) provides for premium reductions and additional election opportunities for health benefits under the Consolidated Omnibus Budget Reconciliation Act of 1985 -- commonly called COBRA -- for folks who have lost their health insurance coverage due to lay-off," reports CSA Executive Director Kathleen McKirchy. "Those eligible pay only 35 percent of their COBRA premiums and the remaining 65 percent is reimbursed to the coverage provider through a tax credit," adds McKirchy.

This new law will help many people getting laid off who want to keep their health insurance, who would otherwise face paying a substantial monthly amount to keep it. Family health coverage can cost on average about $1,000 a month, according to Families USA, a national nonprofit, and the average monthly COBRA premium for individual coverage is $388.

Tags: American Recovery and Reinvestment Act, ARRA, COBRA, health benefits, health care insurance, health insurance, laid-off, layoffs, unemployed

Continue reading Helping Laid-Off Workers Afford Health Coverage.

Cost of Doing Nothing: Tennessee

By SEIU Change That Works on February 26, 2009 10:41 AM
We cannot get our economy back on track without repairing the American health care system. Health care reform is not just a moral imperative, but also an economic necessity. In 2007, the U.S. economy lost as much as $207 billion as a result of the poor health and shorter lifespan of the uninsured.

Skyrocketing health care costs add to families' already overwhelming burden, threatening their health and financial security. We can do better. Solving America's health care crisis will improve quality of care, reduce costs and make businesses more competitive.

The urgent need for reform is more apparent now in Tennessee than ever. In the past eight years, health care premiums for family coverage have risen more than 5 times faster than wages. With 7.9% unemployed, many families are at risk of losing their health coverage. The message is clear: Tennessee's families urgently need Congress to take direct action on health care reform.

Supporting Facts


  • Health Insurance premiums in Tennessee increased by 61.9% from 2000 to 2007, while median earnings only increased a mere 12.1%. The median yearly wage in 2007 for Tennessee was only $25,639, but the average health care premium for a family was $10,606. This means that premiums grew 5.1 times faster than wages.

  • In Tennessee, approximately 1,301,000 non-elderly people spent more than 10% of their pre-tax family income on health care costs in 2008. 87% of those people have insurance, but are underinsured. 1,133,000 Tennessee residents with insurance spent more than 10% of their pre-tax income on health care costs, and 333,000 spend more than 25% of their income.

  • By 2016, projections show that Tennessee families will have to pay close to $19,400 for health care or over 44 percent of median household income. This would represent a 70 percent increase over 2008 levels.

  • In addition, more and more Tennessee residents have been forced into the exorbitantly expensive individual market, as unemployment reaches massive heights. As of December 2008, 241,183 Tennessee residents were unemployed. That reflects a loss of almost 90,000 jobs statewide last year alone, increasing the state unemployment rate by over 2.9 percentage points.

  • If the state keeps losing jobs at the rate it did last year, 384,425 people in Tennessee will be unemployed by 2010. 48.35% of insured Tennessee residents depend on their employers for their health insurance. If nothing is done to stem the economic downturn and reform our health care system, 69,259 Tennessee workers will lose their current health coverage, meaning that 28,684 more people will likely enroll in COBRA. That leaves 40,611 people who will have to enroll in Medicaid, fend for themselves on the private market, or become uninsured.

  • This year Tennessee faces a $1.4 billion budget shortfall. As of 2007, 29% of all state spending has gone to Medicaid and SCHIP. $7.5 billion went to spending on Medicaid alone.

  • As of 2007 there were already 126,186 uninsured children in Tennessee, and more than 714,361 uninsured adults. 276,378 of uninsured adults in Tennessee also live below the Federal Poverty Line. Tennessee's economy lost as much as $3.57 billion because of the poor health and shorter lifespan of the uninsured in 2007. That equates to $4,000 per uninsured Tennessee resident.

  • Of the top 10 employers in the state of Tennessee, 3 of them are Healthcare Providers. According to the US Census, 209,949 individuals work in the Heath Care Sector in the state & make an average of $3,886 per month, which accounts for $1.0 billion in wages per month.

The health of the American economy cannot improve without addressing the healthcare crisis. Building on the existing healthcare system, quality, affordable healthcare can be guaranteed to every American. It's the reform truly needed to rebuild Tennessee's economy.

Tags: COBRA, cost of doing nothing, economic crisis, economic recovery, healthcare, healthcare crisis, healthcare reform, medicaid, schip, state funding, uninsured

Cost of Doing Nothing: North Dakota

By SEIU Change That Works on February 25, 2009 5:03 PM
We cannot get our economy back on track without repairing the American health care system. Health care reform is not just a moral imperative, but also an economic necessity. In 2007, the U.S. economy lost as much as $207 billion as a result of the poor health and shorter lifespan of the uninsured. Skyrocketing health care costs add to families' already overwhelming burden, threatening their health and financial security. We can do better. Solving America's health care crisis will improve quality of care, reduce costs and make businesses more competitive. The urgent need for reform is more apparent now in North Dakota than ever. In the past eight years, health care premiums for family coverage have risen more than twice as fast as wages. With 3.5% unemployed, many families are at risk of losing their health coverage. The message is clear: North Dakota's families urgently need Congress to take direct action on health care reform.

Supporting Facts


  • Health Insurance premiums in North Dakota increased by 74.3% from 2000 to 2007, while median earnings only increased a mere 26.4%. The median yearly wage in 2007 for North Dakota was only $24,255, but the average health care premium for a family was $10,674. This means that premiums grew 2.8 times faster than wages.

  • In North Dakota, approximately 155,000 non-elderly people spent more than 10% of their pre-tax family income on health care costs in 2008. 89% of those people have insurance, but are underinsured. 138,000 North Dakotans with insurance spent more than 10% of their pre-tax income on health care costs, and 48,000 spent more than 25% of their income.

  • By 2016, projections show that North Dakota families will have to pay around $20,000 for health care or over 41 percent of median household income. This would represent an 76 percent increase over 2008 levels.

  • In addition, more and more North Dakotans have been forced into the exorbitantly expensive individual market, as unemployment reaches massive heights. As of December 2008, 12,848 North Dakota residents were unemployed. That reflects a loss of over 1,078 jobs statewide last year alone, increasing the state unemployment rate by over .3 percentage points.

  • If the state keeps losing jobs at the rate it did last year, 14,025 people in North Dakota will be unemployed by 2010. 66% of insured North Dakotans depend on their employers for their health insurance. If nothing is done to stem the economic downturn and reform our health care system, 630 North Dakota workers will lose their current health coverage, meaning that 235 more people will likely enroll in COBRA. That leaves 395 people who will have to enroll in Medicaid, fend for themselves on the private market, or become uninsured.

  • As of 2007, 14% of all state spending has gone to Medicaid and SCHIP. $513 million of North Dakota's budget went to spending on Medicaid alone.

  • As of 2007 there were already 14,305 uninsured children in North Dakota, and more than 53,677 uninsured adults. 16,927 of uninsured adults in North Dakota also live below the Federal Poverty Line. North Dakota's economy lost as much as $269 million because of the poor health and shorter lifespan of the uninsured in 2007. That equates $4,400 per uninsured North Dakota resident.

  • Of the top 10 employers in the state of North Dakota, 8 of them are Healthcare Providers. According to the US Census, almost 42,000 individuals work in the Heath Care Sector in the state & make an average of $3,264 per month, which accounts for $137 million in wages per month.

The health of the American economy cannot improve without addressing the healthcare crisis. Building on the existing healthcare system, quality, affordable healthcare can be guaranteed to every American. It's the reform truly needed to rebuild North Dakota's economy.

Tags: COBRA, cost of doing nothing, economic crisis, economic recovery, healthcare, healthcare crisis, healthcare reform, medicaid, North Dakota, schip, state funding, uninsured

Cost of Doing Nothing: Iowa

By SEIU Change That Works on February 25, 2009 4:36 PM
We cannot get our economy back on track without repairing the American health care system. Health care reform is not just a moral imperative, but also an economic necessity. In 2007, the U.S. economy lost as much as $207 billion as a result of the poor health and shorter lifespan of the uninsured.

Skyrocketing health care costs add to families' already overwhelming burden, threatening their health and financial security. We can do better. Solving America's health care crisis will improve quality of care, reduce costs and make businesses more competitive.

The urgent need for reform is more apparent now in Iowa than ever. In the past eight years, health care premiums for family coverage have risen almost 4 times faster than wages. With 4.6% unemployed, many families are at risk of losing their health coverage. The message is clear: Iowa's families urgently need Congress to take direct action on health care reform.

Supporting Facts


  • Health Insurance premiums in Iowa increased by 72.6% from 2000 to 2007, while median earnings only increased a mere 18.5%. The median yearly wage in 2007 for Iowa was only $26,247, but the average health care premium for a family was $11,194. This means that premiums grew 3.9 times faster than wages.

  • In Iowa, approximately 701,000 non-elderly people spent more than 10% of their pre- tax family income on health care costs in 2008. 91% of those people have insurance, but are underinsured. 638,000 Iowans with insurance spent more than 10% of their pre-tax income on health care costs, and 172,000 spend more than 25% of their income.

  • By 2016, projections show that Iowa families will have to pay over $21,000 for health care or over 39 percent of median household income. This would represent a 76 percent increase over 2008 levels.

  • In addition, more and more Iowans have been forced into the exorbitantly expensive ndividual market, as unemployment reaches massive heights. As of December 2008, 77,080 Iowa residents were unemployed. That reflects a loss of over 13,100 jobs statewide last year alone, increasing the state unemployment rate by 0.8 percentage points.

  • If the state keeps losing jobs at the rate it did last year, 92,989 people in Iowa will be unemployed by 2010. 59% of Iowans depend on their employers for their health insurance. If nothing is done to stem the economic downturn and reform our health care system, 9,126 Iowa workers will lose their current health coverage, meaning that 3,182 more people will likely enroll in COBRA. That leaves 5,944 people who will have to enroll in Medicaid, fend for themselves on the private market, or become uninsured.

  • This year Iowa faces a $134 million budget shortfall, and has already depleted its budget stabilization rainy day fund. As a result, the state has instituted a hiring freeze on public employees. As of 2007, 17% of all state spending has gone to Medicaid and SCHIP. $2.6 billion went to spending on Medicaid alone.

  • As of 2007 there were already 41,361 uninsured children in Iowa, and 248,817 uninsured adults. 89,178 of uninsured adults in Iowa also live below the Federal Poverty Line. Iowa's economy lost as much as $1.2 billion because of the poor health and shorter lifespan of the uninsured in 2007. That equates $4,335 per uninsured Iowa resident.

  • Of the top 10 employers in the state of Iowa, 4 are Healthcare Providers. According to the US Census, 142,870 individuals work in the Heath Care Sector in the state & make an average of $3,256 per month, which accounts for $466 million in wages per month.

The health of the American economy cannot improve without addressing the healthcare crisis. Building on the existing healthcare system, quality, affordable healthcare can be guaranteed to every American. It's the reform truly needed to rebuild Iowa's economy.

Tags: COBRA, cost of doing nothing, economic crisis, economic recovery, healthcare, healthcare crisis, healthcare reform, Iowa, medicaid, schip, state funding, uninsured

Cost of Doing Nothing: Florida

By SEIU Change That Works on February 25, 2009 4:26 PM
We cannot get our economy back on track without repairing the American health care system. Health care reform is not just a moral imperative, but also an economic necessity. In 2007, the U.S. economy lost as much as $207 billion as a result of the poor health and shorter lifespan of the uninsured.

Skyrocketing health care costs add to families' already overwhelming burden, threatening their health and financial security. We can do better. Solving America's health care crisis will improve quality of care, reduce costs and make businesses more competitive.

The urgent need for reform is more apparent now in Florida than ever. In the past eight years, health care premiums for family coverage have risen more than three times faster than wages. With 8.1% unemployed, many families are at risk of losing their health coverage. The message is clear: Florida's families urgently need Congress to take direct action on health care reform.

Supporting Facts


  • Health Insurance premiums in Florida increased by 72.0% from 2000 to 2007, while median earnings only increased a mere 20.2%. The median yearly wage in 2007 for Florida was only $27,353, but the average health care premium for a family was $11,720. This means that premiums grew 3.6 times faster than wages.

  • In Florida, approximately 3,873,000 non-elderly people spent more than 10% of their pre-tax family income on health care costs in 2008. 79.7% of those people have insurance, but are underinsured. 3,087,000 Florida residents with insurance spent more than 10% of their pre-tax income on health care costs, and 883,000 spend more than 25% of their income.

  • By 2016, projections show that Florida families will have to pay close to $22,400 for health care or over 43 percent of median household income. This would represent a 76 percent increase over 2008 levels.

  • In addition, more and more Florida residents have been forced into the exorbitantly expensive individual market, as unemployment reaches massive heights. As of December 2008, 751.753 Florida residents were unemployed. That reflects a loss of over 336,000 jobs statewide last year alone, increasing the state unemployment rate by over 1 percentage point.

  • If the state keeps losing jobs at the rate it did last year, 1,360,143 people in Florida will be unemployed by 2010. 46.38% of insured Florida residents depend on their employers for their health insurance. If nothing is done to stem the economic downturn and reform our health care system, 282,168 Florida workers will lose their current health coverage, meaning that 121,678 more people will likely enroll in COBRA. That leaves 160,490 people who will have to enroll in Medicaid, fend for themselves on the private market, or become uninsured.

  • This year Florida faces a $5.7 billion budget shortfall, and as a result, the state government has implemented a hiring freeze on state employees. As of 2007, 20% of all state spending has gone to Medicaid and SCHIP. $14.6 billion went to spending on Medicaid alone.

  • As of 2007 there were already 843,006 uninsured children in Florida, and more than 2,840,918 uninsured adults. 1,190,935 of uninsured adults in Florida also live below the Federal Poverty Line. Florida's economy lost as much as $14.55 billion because of the poor health and shorter lifespan of the uninsured in 2007. That equates $4,000 per uninsured Florida resident.

  • Of the top 10 employers in the state of Florida, 4 of them are Healthcare Providers. According to the US Census, 814,904 individuals work in the Heath Care Sector in the state & make an average of $3,876 per month, which accounts for about $3.2 billion in wages per month.

The health of the American economy cannot improve without addressing the healthcare crisis. Building on the existing healthcare system, quality, affordable healthcare can be guaranteed to every American. It's the reform truly needed to rebuild Florida's economy.

Tags: COBRA, cost of doing nothing, economic crisis, economic recovery, Florida, healthcare, healthcare crisis, healthcare reform, medicaid, schip, state funding, uninsured

Cost of Doing Nothing: California

By SEIU Change That Works on February 24, 2009 4:48 PM
We cannot get our economy back on track without repairing the American health care system. Health care reform is not just a moral imperative, but also an economic necessity. In 2007, the U.S. economy lost as much as $207 billion as a result of the poor health and shorter lifespan of the uninsured.

Skyrocketing health care costs add to families' already overwhelming burden, threatening their health and financial security. We can do better. Solving America's health care crisis will improve quality of care, reduce costs and make businesses more competitive.

The urgent need for reform is more apparent now in California than ever. In the past eight years, health care premiums for family coverage have risen 5 times faster than wages. 9.3% unemployed, many families are at risk of losing their health coverage. The message is clear: California's families urgently need Congress to take direct action on health care reform.

Supporting Facts


  • Health Insurance premiums in California increased by 95.8% from 2000 to 2007, while median earnings only increased a mere 19.3%. The median yearly wage in 2007 for California was only $30,702, but the average health care premium for a family was $12,194. This means that premiums grew 5.0 times faster than wages.

  • In California, approximately 6,555,000 non-elderly people spent more than 10% of their pre-tax family income on health care costs in 2008. 77.25% of those people have insurance, but are underinsured. 5,064,000 Californians with insurance spent more than 10% of their pre-tax income on health care costs, and 1,321,000 spend more than 25% of their income.

  • By 2016, projections show that California families will have to pay close to $25,500 for health care or over 41 percent of median household income. This would represent a 90.3 percent increase over 2008 levels.

  • In addition, more and more Californians have been forced into the exorbitantly expensive individual market, as unemployment reaches massive heights. As of December 2008, 1,731,800 California residents were unemployed. That reflects a loss of over 652,000 jobs statewide last year alone, increasing the state unemployment rate by over 3 percentage points.

  • If the state keeps losing jobs at the rate it did last year, 2,778,504 people in California will be unemployed by 2010. 48.35% of insured Californians depend on their employers for their health insurance. If nothing is done to stem the economic downturn and reform our health care system, 506,110 California workers will lose their current health coverage.

  • While 209,349 people will likely enroll in COBRA, which lets workers who lose their jobs continue their health benefits at their own expense, the high cost of COBRA will force an estimated 296,761 people to enroll in Medicaid, fend for themselves on the private market, or become uninsured.

  • This year California faces a $35.9 billion budget shortfall. As a result, the state has already proposed cuts that will cause more than 429,000 adults to lose health coverage. As of 2007, 19% of all state spending has gone to Medicaid and SCHIP. $35.4 billion went to spending on Medicaid alone.

  • As of 2007 there were already 1,232,218 uninsured children in California, and more than 5,360,938 uninsured adults. 1,780,823 of uninsured adults in California also live below the Federal Poverty Line. California's economy lost as much as $32 billion because of the poor health and shorter lifespan of the uninsured in 2007. That equates $4,900 per uninsured California resident.

  • Of the top 10 employers in the state of California, 1 of them is a Healthcare Provider. According to the US Census, 1,172,614 individuals work in the Heath Care Sector in the state & make an average of $4,320.26 per month, which accounts for $5.06 billion in wages per month.

The health of the American economy cannot improve without addressing the healthcare crisis. Building on the existing healthcare system, quality, affordable healthcare can be guaranteed to every American. It's the reform truly needed to rebuild California's economy.

Tags: California, COBRA, cost of doing nothing, economic crisis, economic recovery, healthcare, healthcare crisis, healthcare reform, medicaid, schip, state funding, uninsured

Update: Health Care Provisions in the Economic Recovery Act

By John VanDeventer on February 12, 2009 2:26 PM

The Speaker of the House has released a report outlining the key points of the compromise the House and Senate have reached on the Economic Recovery Act. There's lots of good news for health care.

Here are the highlights:

* Despite an all-out smear campaign waged by Rush Limbaugh and the extreme right, the bill provides $19 billion for improved health IT by doctors and hospitals. It will jumpstart the modernization of the health care system, saving billions of dollars, creating thousands of jobs, reducing medical errors, and improving quality.

* It also strengthens Federal privacy and security laws to protect patients' health information from misuse and abuse.

* Through increased Medicaid matching funds, it protects health care coverage for millions of Americans during the recession and helps states avoid cutting eligibility for citizens or scaling back services.

* The bill provides health insurance for recently unemployed workers by providing a 60% subsidy on COBRA premiums for up to 9 months.

* Finally, it invests in much-needed preventive medicine by establishing a $1 billion Prevention and Wellness fund and providing $1.1 billion for comparative effective research - both of which are expected to dramatically improve the quality of care and generate billions of dollars in savings.

The Economic Recovery Act is expected to go up for a final vote by the end
of this week.

Tags: COBRA, economic recovery act, health care system, health insurance, patientsprevention and wellness, quality of care, seiu healthcare

Fixing COBRA Cannot Wait

By Andy Stern, SEIU President on January 16, 2009 3:21 PM

Cross-posted from the National Journal's health care blog. The Journal posed this question:

Would it really do much good to extend the length of COBRA health insurance coverage as part of an economic stimulus package? Would people really sign up? Does COBRA ever really work well?

Yes, make COBRA easier to get and easier to use. People are losing their jobs and losing their coverage, so there's no time to waste. With unemployment at a 16-year high, expect the ranks of the uninsured to swell, putting more strain on state programs that help those in need. COBRA - if made to work - can literally be a lifeline.

Part of the problem with COBRA is that many workers don't qualify as it is - if their employers don't offer coverage in the first place or if their employers go out of business.

What's more, COBRA is unaffordable even to those who are eligible, as the Families USA report makes clear. People who are unemployed are often barely able to pay their mortgages, much less the full cost of a health care premium. Even 20% of the premium would be a financial strain on most unemployed workers, given that the cost of an individual premium is more than $4,000 and family coverage exceeds $12,000.

The solution:

- Allow workers who don't have access to COBRA the opportunity to enroll in Medicaid with a small premium contribution - no more than 5% of their income.

- Provide COBRA-eligible workers with a subsidy or tax credit that covers 80% of the premium.

- Expand the time period for COBRA eligibility - currently 18 months in most cases - to 36 months, given the severe economic downturn. Older workers in particular may have the hardest time finding another job.

Rising unemployment is making our health care crisis even worse, highlighting the need for comprehensive reform. We can't get the economy back on track without fixing health care, and workers can't get back to work if they're sick or have lost their homes due to medical debt. Let's fix COBRA now, so the downturn doesn't push more families into financial ruin.

Tags: andy stern, COBRA, health insurance, healthcare, healthcare crisis, medicaid, National Journal, uninsured

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