U.S. Senator Bill Cassidy, M.D. (R-LA), ranking member of the Senate Health, Education, Labor, and Pensions (HELP) Committee, criticized the Biden-Harris administration for allegedly forcing call-center employees to unionize against their will. This action could potentially lead to the closure of 12 call centers nationwide, affecting 10,000 employees, including 650 workers in Bogalusa, Louisiana.
Since 2013, Maximus has managed the 1-800-MEDICARE and Affordable Care Act call centers for the Centers for Medicare and Medicaid Services (CMS). In 2022, Maximus was awarded a new nine-year contract. Despite high customer satisfaction scores, the Biden-Harris administration terminated this contract two years into its term and is now rebidding it with new requirements that include a “labor harmony agreement.”
A labor harmony agreement mandates that contractors accept union demands even if employees do not wish to unionize. The Biden-Harris administration’s actions come after Maximus employees previously rejected unionization efforts.
“Given the high consumer ratings of Maximus’ performance, it appears that there is no reason to rebid this contract except to force unionization on the call-center employees,” wrote Dr. Cassidy. “Seniors and others who depend on the call centers for help with Medicare and health insurance may receive lower levels of service if union demands make call centers less flexible. Taxpayers will bear the costs of rebidding the contract.”
Cassidy described this as part of a broader pattern by the Biden-Harris administration to promote policies favoring large labor unions at the expense of workers’ freedoms.
In his letter to Secretary Becerra, Cassidy questioned CMS’s decision to rebid the contract despite Maximus’s high performance ratings and lack of significant labor disruptions. He also highlighted that Capitol Bridge Health Services operates under subcontract from Maximus in Bogalusa, employing approximately 650 workers at more than double the minimum wage.
Cassidy requested answers by October 1, 2024, regarding several issues:
1. The cost to taxpayers for rebidding the contract.
2. The operational justification aside from including a Labor Harmony Agreement.
3. The legal justification for rebidding.
4. Whether Labor Harmony Agreements have been used in other federal service contracts.
5. How requiring such an agreement aligns with federal impartiality in labor-management relations.
6. Any communications between CMS and Communications Workers of America concerning Maximus.
7. The necessity of imposing a Labor Harmony Agreement to enhance service quality.
For updates from HELP Republicans, visit their website or Twitter at @GOPHELP.
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