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An American workplace war that's reached a tipping point
CNBC ^ | May 29, 2015 | Scott Cohen

Posted on 06/01/2015 12:56:21 PM PDT by Cincinatus' Wife

The debate has America split—literally.

With Wisconsin's adoption of so-called right-to-work legislation earlier this year, 25 states now prohibit mandatory union dues, and with legislation being pushed in several more states, the right-to-work movement is talking about a national "tipping point."

Under right-to-work legislation, no person can be compelled, as a condition of employment, to join or not to join a labor union or pay dues.

Republican legislators in Missouri passed a right-to-work measure this month, but Democratic Gov. Jay Nixon has said he will veto the bill. A bill almost passed in New Mexico, and backers are pushing similar legislation in Illinois, Kentucky, West Virginia, Maine, Pennsylvania and Ohio.

There are even growing calls, at least in Republican circles, for a national right-to-work law. While backers claim the laws attract business and create jobs, opponents, led by organized labor, don't intend to let the balance tip without a fight.

The 25 Right-to-Work States (shaded in red)

Many right-to-work states are proudly brandishing their laws as part of the battle to attract businesses.

A good place to start is Iowa.

If you're thinking of locating or expanding a business in Iowa, it's one of the first things you'll see in the "Why Iowa" section of the state Economic Development Authority's website, right after a couple lines about agriculture: "Iowa is a right-to-work state."

Iowa—or at least its economic development community—is proud of the state law barring compulsory union dues. It is one of the oldest right-to-work statutes in the country, passed in 1947 at a time when mostly just southern states were adopting the policies.

For some in Iowa, the state's long right-to-work heritage was not enough. Legislation introduced in 2011 would have required the state Economic Development Authority to include the phrase "Iowa is a right-to-work state" in "bold letters on all business recruitment, tourism, and promotional literature."

"Let's give Iowa the most competitive business climate in the nation," said House Republican Leader Linda Upmeyer in a floor speech on the opening day of the 2011 session. "We can start right away by proudly advertising that here in Iowa we are a right-to-work state."

Former State Representative Lance Horbach, who introduced the legislation, recalls that he knew it probably wouldn't go anywhere, and he was right. But he tells CNBC he was concerned about a movement by state officials at the time to de-emphasize the law.

"It's a proven statistical fact that businesses were looking for right-to-work states," he said.

Today, Iowa advertises its right-to work-status anyway, even though there is no law requiring it to.

University of Oregon economist Gordon Lafer said that "proven statistical fact" is anything but.

"There is no evidence whatsoever that right-to-work is a significant draw," he said.

Proponents say right-to-work laws guarantee freedom for employees by making it illegal to force them to pay union dues in order to get or keep a job. Opponents say the laws are primarily meant to weaken unions—which the proponents don't exactly deny—and workers who benefit from union representation should pay their fair share.

Lafer, who is also a research associate at the left-leaning Economic Policy Institute, said while right-to-work states do tend to offer lower wages than states without the laws—around 3 percent lower, on average—the difference is not nearly enough to prevent employers from chasing even lower wage costs overseas.

He points to North Carolina, a proud right-to-work state that was once the heart of the U.S. textile industry. Since the North American Free Trade Agreement (NAFTA) took effect in 1994, the state has lost more than half its non-durable goods manufacturing jobs, nearly all going offshore.

Lafer considers Oklahoma the prime example of a state where right-to-work legislation failed to live up to the promises. The state adopted right-to-work legislation in 2001, making it the only state that adopted a right-to-work law post-NAFTA where enough time has passed to provide ample data. The predicted flow of new jobs to the state never happened. Indeed, U.S. Bureau of Labor Statistics figures show the state lost jobs for three years after the law passed.

"They lost a lot of auto jobs," Lafer said, "but they lost them to Mexico."

Working for a living standard

Referencing the 3 percent decline in wages, Lafer said right-to-work laws tend to backfire on states by lowering living standards—and in addition to lower wages, people in right-to-work states are less likely to have employer-provided health care. That is a particular problem for small-business owners, who tend to be rooted in their communities. In a right-to-work state, their customer base has less disposable income. "When you do anything that lowers wages, that's a problem for these companies," Lafer said.

Lafer and other right-to-work opponents argue that states that adopt the laws in hopes of boosting their economy are being shortsighted. "It may benefit employers not to negotiate with employees and to pay less, but that's different from saying this is going to help a state's economic development," he said.

Businesses, of course, are more concerned with their own development than with public policy, which may help explain why roughly two-thirds of the members of CNBC's Global CFO Council responding to a recent survey said right-to-work laws were "important" or "very important" in their firms' decisions about where to locate or expand.

Before Wisconsin, the last two states to adopt right-to-work laws were Indiana and Michigan, in 2012 and 2013. Previous to that was Oklahoma, in 2001.

The National Right to Work Committee and AFL-CIO agree on one thing: The workplace war has escalated and will continue—they just don't agree on which way it will tip.

"There's no question that passage of the Wisconsin right-to-work law is putting pressure on the 25 other states to ensure that no worker can be fired for refusing to pay union dues," said a spokesman for the National Right to Work Committee in a statement.

Peggy Shorey, an AFL-CIO director and its state government affairs and deputy director of government relations, said, "Since 2011, there has been a concerted and growing legislative effort by extreme politicians, financed by corporate billionaires, to attack workers. Deceptive right-to-work legislation is wrong for America's working families—and over the past few years, workers have successfully fended off many of these attacks on our freedoms, wages and safety."


TOPICS: Business/Economy; Editorial; Government; Politics/Elections
KEYWORDS: alfcio; righttowork; union; unions; walker; wisconsin
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The debate has America split—literally.

Figures don't lie but liars can figure.

25 states (1/2) does not transfer into 1/2 of the country's workforce is in a union.

Union membership is under 10% of the workforce.

And U.S. companies left because of over regulation, over taxation and excessive litigation -- and union demands.

1 posted on 06/01/2015 12:56:21 PM PDT by Cincinatus' Wife
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To: Cincinatus' Wife
Under right-to-work legislation, no person can be compelled, as a condition of employment, to join or not to join a labor union or pay dues.

How could any person who respects individual freedom and self-determination be opposed to people having the right to join, or not join, a labor union, as THEY see fit?

Oh, wait. I answered my own question.

2 posted on 06/01/2015 1:04:46 PM PDT by WayneS
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To: All

With only 11% of americans in an union (according to a quick google search I just did) I hardly doubt it matters. The Union Boogeyman is long since dead.


3 posted on 06/01/2015 1:18:39 PM PDT by escapefromboston (manny ortez: mvp)
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To: escapefromboston

This 11% needs to go as to defeat the cancer.


4 posted on 06/01/2015 1:24:46 PM PDT by Digger (Cruz or lose)
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To: Cincinatus' Wife

Too bad Scott Walker had to be dragged to this.


5 posted on 06/01/2015 1:31:27 PM PDT by SoConPubbie (Mitt and Obama: They're the same poison, just a different potency)
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To: escapefromboston

There’s no big push against government employee unions, because government employees and pensioners comprise most of the bipartisan political class. There’s quite a bit of opposition against Walker and campaigning for others because of that. Private sector unions comprise an even much smaller portion, but those are the unions that politicos complain about. Most of the political folks are at least closely related to government employees.


6 posted on 06/01/2015 1:34:33 PM PDT by familyop (We Baby Boomers are croaking in an avalanche of corruption smelled around the planet.)
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To: Cincinatus' Wife

Important


7 posted on 06/01/2015 1:51:07 PM PDT by CPT Clay
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To: Cincinatus' Wife

During my working life before I became self-employed in 1980, I was required to join a union in many jobs. 5 different unions in total. I can tell you horror stories about being treated badly by the UNION hierarchy. They lied & they actually stole money from us-—Jimmy Hoffa in the Teamsters Union.

As a bookkeeper for small businesses, I can attest to the fact that NO small business can afford to be shoved into a Union setup.

The older I have gotten—now 75—I am more & more aware of the cost of PUBLIC EMPLOYEE UNIONS PENSIONS on the overall tax structure of any state I have lived in.

It is the very large elephant in the room in every state legislature & inside the Federal system.

The financial tipping point is coming very close & the politicians don’t seem to really give a rip.


8 posted on 06/01/2015 2:31:52 PM PDT by ridesthemiles
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To: Cincinatus' Wife
backers are pushing similar legislation in Illinois................

Not in a gazillion years.

(Bear in mind that I am on record as having said that about concealed carry in Illinois too.)

9 posted on 06/01/2015 2:39:32 PM PDT by Graybeard58 (29 more shopping days 'til, Graybeard 58's b/day!)
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To: SoConPubbie
Too bad Scott Walker had to be dragged to this.

Try being honest.

Walker's been battling the unions since before he was elected governor.

I guess you'd rather that he'd let them cut his head off at the onset, rather than choose the path that he did - the one that led to victory.

10 posted on 06/01/2015 2:41:15 PM PDT by Cincinatus' Wife
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To: ridesthemiles

bttt


11 posted on 06/01/2015 2:42:35 PM PDT by Cincinatus' Wife
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To: escapefromboston
The Union Boogeyman is long since dead.

Not as a source of funding for the left, or as an obstacle for educational reform.

12 posted on 06/01/2015 2:43:37 PM PDT by Vince Ferrer
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To: Cincinatus' Wife

“led by organized labor, don’t intend to let the balance tip without a fight.”

The commie unions had a chance to fight, but they pissed their pants and ran.

Union cancels Boeing vote, claiming gun-toting workers told it to take off
http://www.foxnews.com/us/2015/04/24/union-cancels-boeing-vote-says-gun-toting-workers-told-it-to-take-off/

IMO, the commie union leaders no longer have the backing of the rank and file.


13 posted on 06/01/2015 4:06:58 PM PDT by sergeantdave
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To: Cincinatus' Wife
Try being honest.

No, you try being honest.

Walker had warned his legislature not to bring RTW legislation forward right now, presumably because he felt in some way it would hurt his run-up to an announcement of a Presidential Run.

It was only because both houses of the GOP-Controlled legislature did their duty honorably and put the bill on his desk that he was forced to sign it now.
14 posted on 06/01/2015 5:15:07 PM PDT by SoConPubbie (Mitt and Obama: They're the same poison, just a different potency)
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To: Vince Ferrer
Exactly. The biggest share of union members are in public employee unions or industries such as health care which are nearly socialized and effectively public employee unions.

They are organized against the taxpayers.

15 posted on 06/01/2015 6:51:36 PM PDT by Vigilanteman (Obama: Fake black man. Fake Messiah. Fake American. How many fakes can you fit in one Zer0?)
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To: SoConPubbie
Does your candidate know tactical politics?

Everyone knew Walker would sign a Right to Work bill if it reached his desk.

Tom Barrett knew it. It's an hour but by watching it ALL you will have a good idea how Walker is going to campaign and interact with the media and critics.

First business was to bring the public sector unions to heel - and THAT was the battle we all watched unfold - the repercussions on those who helped are still being felt.

When it came time to push Right to Work, the positive effects of the taming of the public sector unions was apparent and there was no fight left in Wisconsin to oppose Right to Work.

A bonus link.

...“I thought that the guy was too nice to ever be successful in politics,” Satran said. Now, Walker is governor, and Satran — having worked in politics for years — is a bartender at J. Paul’s in Georgetown. “Turns out I was wrong.”....

16 posted on 06/01/2015 11:00:09 PM PDT by Cincinatus' Wife
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To: Cincinatus' Wife

The 3% issue is a red herring. Union dues run about 3%, IIRC.

More important to workers is liberty. There are more self-employed in RTW states. Studies of employees show that the number one issue isn’t pay, but control over time.

Many women specifically choose industries or jobs that give them flex time, just for this very reason.


17 posted on 06/02/2015 7:14:13 PM PDT by 1010RD (First, Do No Harm)
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To: SoConPubbie; Cincinatus' Wife

Wrong again. You’re really losing any credibility on this. Walker told the media and dodged an ugly fight. It was quickly brought to the floor, Walker could claim surprise and not be a lightening rod, and it passed.

Yet you complain. Who do you want to win? Some imbecile or somebody who mops the floor with the media, smiles and gets the job done?

Stop with the negative vibes, SoConPubbie!


18 posted on 06/02/2015 7:16:48 PM PDT by 1010RD (First, Do No Harm)
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To: 1010RD
Wrong again. You’re really losing any credibility on this. Walker told the media and dodged an ugly fight. It was quickly brought to the floor, Walker could claim surprise and not be a lightening rod, and it passed.

Nope, not wrong again. I'm not being negative either 1010RD. Now, it does reflect negatively on Scott Walker, however, that does not mean I am being negative where Scott Walker is concerned, unless you have some sort of cultish desire to protect Scott Walker to the abuse of the truth?:

NOVEMBER 22, 2013: Scott Walker: No need to pursue 'right to work' in Wisconsin

Don't get lost in being a true-blue, cultish like believer in Scott Walker 1010RD. Be objective, and realize that no candidate, Scott Walker, Ted Cruz, and everybody else, is going to agree with your conservative positions all the time. Otherwise, you come acrosss as a shill, paid or not.
19 posted on 06/02/2015 9:12:45 PM PDT by SoConPubbie (Mitt and Obama: They're the same poison, just a different potency)
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To: SoConPubbie

You’re clueless.

And you’re anti-Walker posting.


20 posted on 06/03/2015 1:06:48 AM PDT by Cincinatus' Wife
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