Fairness Integrity Job Growth Right To Work

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FairnessIntegrityJob GrowthRight To Work
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Right To Work

• RTW is the freedom for any Hoosier to be hired
  only on the merits of his or her ability.
• RTW protects every workers right to join, or not
  to join, a union.
• This fundamental principle prohibits forced
  membership or dues in any organized body and
  instead provides choice.

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Why it works for Hoosier workers

• Employees can stop supporting a union without
  being forced to quit their jobs.
• RTW makes union officials more responsive to
  rank-and-file members.
• Various Mackinac/Zogby Polls (2004, MRI 1993)
  have shown that over 50 of rank-and-file union
  members support RTW laws.
• Union officials are forced to bargain for the
  immediate interests of all members.

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Why we need Right to Work

• The National Labor Relations Act of 1935 grants
  the right to join unions, but fails to protect
  the right to not join a union.
• The collective bargaining power of a union
  stifles certain interests while claiming to speak
  for all.

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Indiana Losing Ground to RTW States

• Personal Income
• 1994-2004 Real Income in RTW states increased
  15.1 percentage-points faster than in Indiana.
• Population Shifts
• 1994-2004 RTW states experienced 12 increase
  in 25-34 age bracket, while non-RTW states
  experienced a 7 decline.
• Indiana experienced 6 decline in that age
  bracket during the same period.

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Indiana Losing Ground to RTW States

• 2001 average cost-of-living adjusted income per
  capita
• Non-RTW states 25,641
• RTW states 25,940
• Indiana 25,769
• 
  
• (Nelson Drown, Survey and Analysis of Teacher
  Salary Trends 2002, AFT/AFL-CIO U.S. Commerce
  Department, Bureau of Economic Analysis)

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The Oklahoma Experience

• The state went from below-average job growth
  to first in the nation within months of
  implementing Right to Work.
• Incomes Rise
• Health Coverage Expands
• Poverty Falls

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Oklahoma Incomes Rise

• Real household income increased by roughly
  1,500, while the national median fell by a
  little over 1,100.
• Between 1990 and 2000, Oklahomas real household
  income relative to the national median fell by
  roughly 1,300. Since the enactment of the RTW
  law, the trend has reversed.
• After RTW passage, Oklahoma experienced immediate
  1.4 real aggregate income growth. Real income
  growth in states with forced union dues was 0.9.

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Oklahoma Health Coverage Expands

• Between 2000 and 2004, the U.S. Census Bureau
  reports that the total number of Americans
  covered by private health insurance fell by 2.8
  million.
• Opposite the national trend, those privately
  insured in Oklahoma increased by 5,000.

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Oklahoma Poverty Falls

• The poverty level for Oklahoma dropped a
  statistically significant 3.2 percent from
  2000-2001 to 2002-2003.
• Nationwide, poverty rose 1.1 percent during
  the same time period.

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At least one-third of businesses looking at
expansion sites Do Not Even Consider
non-Right-to-Work States.
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• ... A Right-to-Work law would make it much
  easier for me to do my job.
• -Personal observation of Mickey Maurer,
• former Indiana Secretary of Commerce

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The Impact of RTW on Indianas Counties

• The Beltway Effect
• The statistical impact on borders
  between RTW non-RTW states

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The Beltway Effect

• An Allegheny Institute report shows a
  correlation between Right to Work states and
  beltway (or functional equivalent) data from
  the US Bureau of Labor Statistics.
• Functional equivalents include a series of
  major arterial roads that facilitate commuting
  and surface transportation.

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The Beltway Effect
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The Beltway Effect

• Relevant statistical difference
• 35.5 compared to 1.1.
• A beltway roadway plus RTW legislation is the
  preferred combination for advanced job growth.
• Major Moves and continued highway, byway and
  infrastructure development also promote job
  growth.

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The Border Effect

• In non-RTW states, the percentage growth in
  manufacturing jobs decreases as you get closer to
  a neighboring RTW state.

From the Mackinac Center for Public
Policy www.mackinac.org
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The Border Effect
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The Border Effect

• Job growth declines in a non-RTW state as
  distance decreases to the state boundary with a
  RTW state.
• Job growth increases on the other side of the
  non-RTW/RTW state boundary.

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The Border Effect

• Every county in Indiana is within 75 miles of
  a non-Right-to-Work state.
• All of Indiana will be positively affected by
  RTW legislation.

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Beltways and Borders

• This map depicts the combined effect of Right
  to Work legislation on long- term job growth.

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Indianas Neighbors

• "We must get Kentucky off the economic
  development no-call list."
• former Gov. Ernie Fletcher
• Kentucky is currently making a push to adopt RTW
  legislation.
• Ohio, Michigan, and Wisconsin are considering the
  move to RTW legislation.

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Right To WorkIts a Matter of Jobs.Its a
Matter of Fairness.