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Right to Work (RTW) is a Simple Concept
RTW States Rank Higher in Pro‐Business Climate
Indiana Unemployment Statistics
Many Businesses do not consider non‐RTW states when deciding where to locate and create jobs
Right to Work (RTW) is a Simple Concept
Hoosiers should have the freedom to decide whether or not to financially support a union.
RTW States Rank Higher in Pro-Business Climate
Indiana Unemployment Statistics
- 9.0% Indiana unemployment rate – Oct. Report, Indiana Department of Workforce Development – (DWD)
- Quarter of a Million Unemployed Hoosiers
- 23.6% unemployment rate for post 9/11 Hoosier Veterans – Bureau of Labor Statistics (BLS)
- Indiana has the 4th largest National Guard – over 14,000 service men and women
- Since 9/11, over 13,000 Hoosiers have supported the Global War on Terror through Overseas Deployments, ranking Indiana 6th in the nation
- 19% unemployment rate for 20 to 24 year olds – BLS 2010 Annual Averages
- Minority Unemployment Rate – BLS 2010 Annual Averages
- African Americans – 20%
- 20 to 24 year olds – 33%
- Hispanic – 15%
- 20 to 24 year olds – 16%
- Current Number of Hoosiers Collecting Unemployment – DWD, Nov. 12, 2011
- 50,000 – 6 Months
- 24,000 – Nearly 1 Year
- 43,500 – Over a Year
- More than 200,000 Hoosiers have exhausted 99 weeks of unemployment benefits in last the two years.
Many Businesses do not consider non‐RTW states when deciding where to locate and create jobs
- 25% – 50% of industrial clients exclude non‐RTW states when deciding where to locate. Testimony during the 2011 Interim Study Committee on Employment Issues
- Indiana has missed multiple project opportunities that represented thousands of high‐paying jobs and billions of dollars in capital investments because businesses specified RTW states only. David V. Brandon (speaking from personal experience)-Senior Vice President of Site Selection Group LLC; Dallas, TX
- RTW ranked 3rd out of 10 in importance when considering factors most critical to the site selection process for businesses looking to locate a new facility. “Boyd Corporate Site Selection Leading Indicator Poll” July 18, 2011 to August 12, 2011 (Results are based on responses from 70 manufacturing companies); The Boyd Co., Inc., Location Consultants, Princeton, NJ
- A majority of the time, manufacturing and distribution businesses eliminate at the onset non‐RTW states from their site selection process. Letter from Larry Gigerich Managing Director of Ginovus (site selection and economic development advisory firm that advises clients throughout North America); Indianapolis, IN
Union Statistics
BLS Press Releases: Union Members in 2000, Jan. 18, 2001; Union Members 2010, Jan. 21, 2011
- 2010 ‐ Wage and salary union members represent 11.9% of the national workforce (down from 12.3% last year).
- Public sector union membership is 36.2% (7.6M employees) nationally
- Private sector union membership is 6.9% (7.1M employees) nationally
- 2000-Wage and salary union members represented 13.5% of the national workforce (down from 20.1% in 1983).
- Public sector union membership was 37.5% nationally
- Private sector union membership was 9.0% nationally
- There were 489 supervised union elections over the last 10 years. National Labors Relations Board (NLRB)
- 48.5% of the elections resulted in a new union being certified or a current union being affirmed
- 51.5% of the elections resulted in a new union not being certified or a current union being decertified
- Private sector job growth increased more in RTW states than Non‐RTW states – BLS
- 32% growth in RTW states (1990 – 2010)
- 10% growth in non‐RTW states (1990 – 2010)
- Personal Income grew more in RTW states than Non‐RTW states – Bureau of Economic Analysis (BEA); BLS
- 112.3% growth in RTW states between (1990 – 2010)
- 105% growth in non‐RTW states between (1990 – 2010)
- When adjusted for cost‐of‐living (COL), RTW states have higher weekly wages – Missouri Economic Research and Information Center; BLS (Weekly wages based on total private employment for 1Q 2011)
- $822 average weekly wages adjusted for COL in RTW states
- $821 average weekly wages adjusted for COL in Non‐RTW states
Unemployment rates are lower in RTW states than Non‐RTW states
- Indiana passed a RTW law on March 1, 1957
- There was a 4 month window before the law became effective and many contracts were extended
2 to 3 years. Additionally, union leaders tied the law up in the courts by arguing that Indiana’s RTW law did not prohibit agency shops. Agency shops are union security agreements that allow employees to be forced to pay union fees in order to get or keep a job. The Indiana Court of Appeals agreed with the union leaders. - The law never had a chance to be effective and was later repealed in 1965.
- The United States Supreme Court has ruled that workers cannot be required to join unions as a condition of employment but can be required to pay agency fees.
- RTW for Indiana public school teachers was passed in 1995 and is still in force today – IC 20‐29‐4‐2
- Bayh veto overridden in the House on April 26, 1995 – RC 832: 51 – 49 (SEA5; Sponsor: Bosma)
- Bayh veto overridden in the Senate on April 25, 1995 – RC 631: 26 – 22 (SEA5; Author: Adams)
- The last two states to pass RTW were Oklahoma (2001) and Idaho (1986)