During the battle over comprehensive health care reform in the early 1990s,
organized labor was not only unable to put together a winning coalition bu
t also found itself divided and on the defensive as it struggled to prevent
any further erosion of the private-sector safety net of the U.S. welfare s
tate. Labor's relative ineffectiveness has deep institutional and political
roots and was not merely a consequence of its dwindling membership base. S
everal key institutions of the private welfare state, notably the Taft-Hart
ley health and welfare funds and the Employment Retirement Income Security
Act (ERISA) preemption, brought the interests of organized labor more close
ly in line with those of large employers and commercial insurers and aggrav
ated divisions within organized labor and between unions and public interes
t groups. In addition, several political factors conspired to reinforce lab
or's tendency to stick to a policy path on health care issues that was pred
icated on an employer-mandate solution and that had been charted primarily
by business and leading Democrats. As a result, organized labor did not eme
rge from the 1993-1994 struggle with its political base fortified nor with
a viable long-term political strategy to achieve universal health care and
to shift the political debate over health policy in a more desirable direct
ion.