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The Facts about Right-to-Work in Indiana
It’s Bad for AmericaIt’s Bad for Working Families
What is “Right-to-Work?”
The 1947 Taft-Hartley of the National Labor Relations Act created a loophole (section 14b) in which states can make union-security clauses illegal in collective bargaining agreements
Under a RTW law, employees cannot be required to pay union dues as a condition of employment
Last state to pass RTW was Oklahoma in 2001
Most states passed RTW during 1947-1959 period
Paying Fair Share in Non-RTW States Union security clause in non-RTW states
Fair share Workers in Union positions, positions which receive all of
the wages and benefits of union representation, must pay the costs of that representation
RTW states create a “Right-to-Freeload” Workers get all the same wages and benefits Union must represent them at own expense
Origins of The “Right-to-Work” Movement
Before 1955, various employer associations supported individual state efforts to pass RTW
In 1955, a collection of small business people formed the National Right to Work Committee (NRTWC)
The NRTWC joined with the National Association of Manufacturers and the US Chamber of Commerce to push RTW across the country
National “Right-to-Work” Movement
National Right to Work Committee founded in 1955
Spawned state organizations across the country
National Right to Work Legal Defense and Education Foundation added in 1968
National Institute for Labor Relations Research added in 1990s
Right-to-Work Laws are a Relic of the Past The RTW campaign began in 1947
To date, more than 60 years later, less than half of our states (22) have adopted a RTW law
RTW laws are out-dated, redundant, and a relic of a partisan, anti-union agenda of another era
Economic Policy MythsDon’t Believe the Hype
Economic Development Myths RTW is not among the most important factors related to business
decisions on facility location
Incentive packages offered by states are the most important factor: tax rates; education of workforce; cheap energy; abundant
labor supply; cheap land; transportation; climate
Good growth vs bad growth is the real issue
RTW lowers per capita incomes and the standard of living
Oklahoma “Job Creation” Myth To attract new businesses in the 1990s, began giving 5%
cash back on payrolls for creating new jobs No requirement on how money is spent
Now gives 10% cash back on payrolls of jobs with annual salaries or $94,000 or more No requirement on how money is spent
RTW has nothing to do with this situation
Company Location Myth In 2010, Area Development magazine ranked the
top 10 states for site selection based on survey of site selection industry consultants Indiana ranked number 6 out of 10
The survey revealed 8 main criteria used by consultants to determine site location selection None of the 8 criteria mention RTW
Company Location MythIn 2010, Chief Executive magazine polled 600 U.S. CEOs about site selection criteria:
Criteria were grouped and rated as follows: Tax and regulation; workforce quality; living environment
Under "workforce quality" the 5 most important items were: Employee work ethic; general education level of workforce;
competitiveness of wage rates; employees cooperative relationship with management; availability of labor with specialized skills
RTW was not a factor in site location selection Education of workforce is more important factor in site selection
Actual Buying Power Myth Actual buying power is commonly measured as BPI
6 of the top 10 metro areas with the highest BPI in the U.S. are in non-RTW work states (2009 data)
29 of the top 50 metro areas with the highest BPI are in non-RTW states (2009 data)
Workers in RTW states do not enjoy greater buying power than workers in non-RTW states
Competition Myth Off-shoring of jobs from the U.S. mainland
Overwhelming majority of U.S. jobs off-shored are non-union jobs Not a choice between union wages and non-wages Choice between living wages and third world wages Never seem to compete on executive’s wages
If entire U.S. workforce made the federal min. wage of $7.25 per hr - still cannot compete with workers in third world nations The 2010 average wage for a Mexican worker was approximately $2.00
per hr with no benefits
“Falling Tide” Effect for All Workers Reverse of “Rising Tide" effect on wages and benefits
Unions lose bargaining strength Resulting drop in wages and benefit levels lowers wages and benefits
throughout the entire community
This happens in the reverse manner that the "rising tide" effect raises wages and benefit levels throughout an entire community
Right-to-work directly impacts floor and ceiling wages in every community within the state Impacts every worker, not just union workers
Current Economic DataExploding the “Right-to-Work” Myths
Mean Hourly Wage Construction Workers, 2009
Bureau of Labor Statistics, 2009
Mean Annual Earnings Construction Workers, 2009
Bureau of Labor Statistics, 2009
Mean Hourly Wage Production Workers, 2009
Bureau of Labor Statistics, 2009
Mean Annual Earnings, Production Workers, 2009
Bureau of Labor Statistics, 2009
Poverty Rate, 2009
US Census, American Community Survey, 2009
Indiana andOther States
State Comparables Selection Michigan, Illinois, Ohio, and Kentucky
Indiana’s four border states - all non-RTW
Tennessee and Alabama Closest RTW states to Indiana – I-65 Corridor
Oklahoma Most recent state to become RTW - 2001
Idaho Held up as a model by RTW supporters
Right to Work
Non Right to Work
Mean Hourly Wages: Construction Workers by State
Bureau of Labor Statistics, 2009
Right to Work
Non Right to Work
Mean Annual Earnings Construction Workers by State
Bureau of Labor Statistics, 2009
Right to Work
Non Right to Work
Mean Hourly Wages: Production Workers by State
Bureau of Labor Statistics, 2009
Right to Work
Non Right to Work
Mean Annual Earnings Production Workers by State
Bureau of Labor Statistics, 2009
Right to Work
Non Right to Work
Mean Hourly Wage Construction Workers, 2009
Bureau of Labor Statistics, 2009
Mean Annual Earning Construction Workers, 2009
Bureau of Labor Statistics, 2009
Mean Hourly Wage Production Workers, 2009
Bureau of Labor Statistics, 2009
Mean Annual Earnings, Production Workers, 2009
Bureau of Labor Statistics, 2009
Race to the Bottom If we attempt to compete with third world wages, it
will be a race to the bottom The first one to work for free will win!
We are a consumer-based society For our economic engine to run, workers
need disposable income to spend Lowering wages in order to compete at a level
we can never attain is economic suicide
Forced Unionism Myths
“Forced Unionism” Argument
Workers are ‘forced” to join a union to keep their job
Workers are “forced” to pay union dues for union political activities with which they do not agree
Facts About “Forced Unionism”
A “Right-to-Work” state law is redundant, out-dated, and unnecessary
Federal law has protected the rights of workers from “forced unionism” for decades
Ultimately, workers are free to choose where to work
The “Forced Unionism” Myth Fact #1: Workers cannot be forced” to join a Union
1947 Taft-Hartley amendments to the National Labor Relations Act Right of workers to refrain from joining a union was expressly
added to Section 7
Affirmed by the 1963 U.S. Supreme Court case NLRB v. General Motors Corp. Workers cannot be forced to belong to a union
*373 U.S. 734 (1963)
The “Forced Unionism” Myth
Fact #2: Workers cannot be required to pay for Union political activities with which they do not agree
Decided by the 1988 U.S. Supreme Court case Communications Workers v. Beck Workers cannot be forced to pay union dues for
political activities
*487 U.S. 735 (1988)
Worker Choice 93% of the private sector is non-union
Only 7% of the U.S. private sector workforce is unionized
Workers who choose not to pay their fair share of union dues for the good wages, benefits, and representation services they receive may simply choose to work elsewhere
Non-union companies are continually hiring Wal-Mart McDonald's
Workers are not bound to work in a union job in which they feel uncomfortable Workers may terminate the employment relationship at any time Workers are free to move to an existing RTW state
“Forced Representation” Unions in RTW states are required, by force of law,
to represent non-contributors and non-members
Only time in U.S. history that an organization has been "forced" to represent non-members and non-contributors and bear the costs of that representation
Federal or state government have never required a U.S. business to perform a similar task
Fighting Back
The End