Right to work or right to work for less? Unfortunately for Hoosier workers, it's the latter.
The Indiana General Assembly is rushing through legislation that would make Indiana a so-called right-to-work state, producing more tumultuous times at the Statehouse. The way the Republican majority is limiting debate and racing to enact the bill is enough to raise eyebrows, too.
Gov. Mitch Daniels, himself a Republican, and the GOP legislators say the bill would help bring more jobs to Indiana. The Democratic opposition argues that the legislation would reduce wages and benefits; a better name for it would be right to work for less, they say.
The bill is not necessary and thus a waste of time, effort and money. In comparing statistics among states with and without right to work laws in place, it is evident Indiana would not gain economically from such a measure.
Worse, the measure is bad economics and merely another of those attempts to employ a wedge issue among voters. It is that old political game of appealing to misconceptions and fears of voters. More than anything, the legislation is designed to exploit the anti-union sentiment among many Hoosier voters and to further erode the collective bargaining rights of Indiana workers.
Furthermore, there is no substantive evidence that the measure would boost Indiana's economy and produce more jobs in the state. Similar laws have not led to major job growth in other states, so what makes proponents think it would work here?
In other states, right-to-work laws prohibit contracts that require workers to pay union dues. A union obviously can reduce a company's profits somewhat, by obtaining a higher share for workers. Economists, however, point to statistics showing that unionization has a minimal impact on growth and employment.
Unionized workers earn more and get more generous benefits. Last year, wages of workers in unionized manufacturing companies in the state were 16 percent higher than in nonunion plants. Why does the majority in Indianapolis want to stop that?
The critics' contentions that the legislation is an assault on unions, the middle class and Indiana workers is far from overblown. There is no doubt that the bill if passed would curb collective bargaining rights and perhaps pave the way for even more union-restrictive legislation in the future.
With a large majority in the Indiana House, a super majority in the Senate and a governor pushing it, the bill will likely be passed. That is a shame. It's not needed and it's bad economics. The legislature should be concentrating their efforts on other measures that would truly result in job creation.
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