Right-to-work flawed

From Mike Jackson, Executive Secretary-Treasurer of the Michigan Regional Council of Carpenters:

As recently reported in our Detroit media, Michigan’s unemployment rate continues to decline, now at the state’s lowest level since September 2008. Michigan also added 67,000 net new jobs in 2011, including in manufacturing and professional and business services.

Yes, we still have our work cut out for us. However, the future does look stronger with the resurgence of our domestic automotive industry and supplier networks, as well as ongoing and prospective investments in areas like Big Three plants, high-tech, health care and construction, which includes much-needed transportation infrastructure.

Unfortunately, amidst progress, right-to-work advocates, with their anti-democratic, anti-middle class, anti-union agenda, look to be making another run at having Michigan become a right-to-work state. Activity is heating up in Lansing even after Gov. (Rick) Snyder has said repeatedly that he has no interest in right-to-work legislation, this misguided and dangerous “solution” for which no problem exists.

(Here’s) a fresh look at the “stats.” The truth is that there is no credible evidence that right-to-work states, which allow workers to opt out of union dues even when their compensation, benefits and job protections have been collectively bargained for by a union, do better economically or foster business attraction. Presently, 22 states have right-to-work laws.

In fact, as reported recently by money.msn.com, of the 15 counties in our nation with the highest poverty rate according to the most recent U.S. Census data, 14 are in right-to-work states.

Looking at the top 10 states with the highest rates of unemployment, six of the 10 are right-to-work states.

Recent studies by Lonnie Stevans of Hofstra University, utilizing data from the U.S. Small Business Administration, and Gordon Lafer for the Economic Policy Institute have determined that:

• A state’s right-to-work law has no impact on economic growth or influence on employment and business capital formation;

• The average real state (gross domestic product) growth rates are not significantly different between right-to-work and non-right-to-work states;

• After accounting for cost of living, right-to-work laws lower wages by $1,500 per year — for both union and non-union employees; and

• Right-to-work decreases the odds of getting employer-supported health care insurance by 2.6 percent and a pension by 4.8 percent, again, for both union and non-union employees.

Other studies find significantly higher wages for women and minorities in union jobs, as opposed to non-union.

(This is) a better approach. Perhaps most disturbing is the continued delusion of right-to-work fanatics (advocates) that the road to economic progress is somehow paved with lower wage, lower benefit, less-incentivized, less-career inspiring employment.

Interestingly, the 2010 State New Economy Index, published by the Information Technology & Innovation Foundation, found that three-fourths of the top 20 states for high-tech companies, Michigan among them, are in non-right-to-work states. Only one state in the top 10, Virginia, was a right-to-work state.

Moreover, unions are not the enemy of economic progress or worker productivity. Unions increase productivity by encouraging new technology, labor-management coordination and increased training. The right-to-work camp will never admit to it, but many progressive, highly competitive businesses prefer the overall value of a unionized work force derived through collective bargaining.

Clearly, we must look beyond labor laws as a determinant of business attraction and job growth, as Gov. Snyder has done. Our emphasis should be on infrastructure improvement, transportation, education and work force development.

The Michigan Regional Council of Carpenters agrees with Gov. Snyder that it is time for labor, government, and the private sector to partner and work toward solutions that benefit Michigan as a whole. With all parties now focused on building a stronger, more-resilient, modern economy for our state, now is not the time to focus on divisive issues that hurt our state.