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Bringing business back to the table for health care reform

In a sign that the movement for universal access to quality, affordable health care is growing, the Securities and Exchange Commission (SEC) has changed its position on shareholder-submitted universal health insurance proposals for U.S. companies.

The new rule means that firms can no longer exclude such proposals from the vote at shareholder meetings. For years, unions, religious groups and other organizations -- which hold billions in companies' stock as part of their pensions and health benefit accounts -- have submitted shareholder proposals encouraging support for the principle of quality, affordable health coverage for all.

But now, companies must either bring these proposals to a vote or engage the shareholders in a dialogue on the issue.

The SEC explained its decision:

But the commission said it was appropriate for shareholders to express their views to company management by voting on "significant social policy issues" beyond day-to-day business matters.

Over the years, the commission said, it had reversed its position on certain issues to reflect "changing societal views," and that now appears to be the case with respect to health care.

The rule change came after a strong effort led by the AFL-CIO to get the SEC to require companies to respect their shareholders' desire for health care reform.

The purpose of the shareholder proposals is to bring businesses into the universal health care debate. With health costs skyrocketing, American companies are realizing that reforming our country's health care system will benefit not just patients but businesses' bottom lines as well.

Companies like General Electric and Medco Health Solutions have adopted universal health care principles. But others including General Motors and Reynolds America remain opposed, arguing that universal coverage principles are against their interests.

Until these businesses come around, it's important for unions like CWA to continue to use our leverage to convince them to become part of the solution.