Senators Skinner, Arnold and Tallian hear testimony during committee hearing the "Right to Work" bill.
The 2012 legislative session begins January 4, and legislators are expected to devote much of their time to debate over controversial employment issues – namely the so called “Right to Work” bill. Despite Indiana’s high unemployment, limited access to early education and full-day kindergarten, and increasing threats to voter rights, Republican leaders in the Indiana House and Senate announced in November that passing a “Right to Work” law will be a top priority in the 2012 legislative session.
Myths and facts: The proposed law would make it illegal for employees to negotiate with their employer an agreement that requires everyone who benefits from a union contract to pay their share of the negotiation costs.
Though proponents of such legislation say the policy is needed to remove all barriers to job creation, the benefits of such a law are far from certain. In fact, a Minority Report filed in record of the 2011 Interim Study Committee on Employment Issues stated that there is a “distinct lack of statistically valid information proving any true benefit of Right to Work policies on Indiana’s economy.”
Indiana currently ranks 5th in the nation for overall business climate and 2nd overall for per capita manufacturing employment. When business leaders are asked what factors most influence their decision to locate their businesses, Right to Work has not cracked the top 10 most often cited factors in the past five years. Furthermore, when asked for a specific example during the Interim Study Committee’s hearings, the chairman of the Indiana Economic Development Corporation was unable to name one employer who did not locate their business in Indiana because the state lacks such a Right to Work law.
Corporations benefit, not employees: Undoubtedly, Indiana’s economy continues to struggle with high unemployment and underemployment; our state is the only state in our region to not see job gains in the past year. However, restricting employee rights and depressing wages for the benefit of out-of-state corporations will not solve these problems.
Most importantly, this legislation will harm working men and women in our state. Disallowing employees—after a majority vote—from entering into negotiations with their employer about pay, working conditions, and safety is a troubling precedent.
We should instead be focusing on solutions that benefit employers and employees, like encouraging hiring through tax breaks for companies that hire new employees, giving employers more options to weather low production periods (known as “Work Share”), and giving first priority to contractors who employ Hoosiers for in-state public works projects.
Impact on wages and local economies: A Right to Work law would decrease personal wages in Indiana by an estimated $1,500-$5,500 per year. This would have a devastating impact on our local communities and businesses.
Likewise, research by the Economic Policy Institute has shown that in Right to Work states fewer employers offer health care benefits, pension plans and other employee benefits. Having thousands of Hoosiers lose access to these benefits would threaten their health, financial security and possibly shift additional costs to the state.
What’s next: Expect to hear more about this issue as the session progresses. If you would like to stay up to date on the Right to Work debate during the 2012 legislative session, stay tuned here in The Briefing Room.
