Debate on whether Indiana will become the 23rd right-to-work state will likely dominate the Indiana General Assembly session that starts Wednesday.
Indiana Gov. Mitch Daniels and the Indiana Chamber of Commerce have backed the passage of so-called right-to-work legislation. The issue compelled House Democrats to walk out for five weeks last session, and Northwest Indiana unions are once again promising a strong presence at the State House.
In right-to-work states, unions are prohibited from requiring non-members to pay dues or fees that fund the cost of representation.
Supporters of the legislation say it will lead to job creation and widen economic development opportunities for the state.
Opponents argue right to work is an emotionally charged issue that will lower wages for union and non-union employees alike and hurt bargaining power.
“Under a right-to-work law, people could withdraw from the union and wouldn’t have to pay anything. But we are still obligated by federal law to represent them like we would represent a member,” District 7 United Steelworkers Director Jim Robinson said. “That’s why I call it right to freeload.”
Daniels argues that Indiana not being a right-to-work state has led to “hundreds” of lost opportunities.
“When a business allows us to compete, we win two-thirds of the time. But between a quarter and a half of the time, we don’t make the first cut, due to this single handicap. Knowing how many jobs we could be capturing is what has persuaded me that we must enact this reform,” said Daniels in the statement he released in support of the legislation.
Northwestern Indiana Building and Construction Trades Council Business Manager Randy Palmateer points to the statistic that Nevada, a right-to-work state, has the highest unemployment rate at 13 percent.
As for economic development, Modern Forge building a facility in Merrillville is an example of how Indiana is already business friendly, Palmateer said.
“We have all these projects, and we’re not a right-to-work state,” Palmateer said. “There’s nothing that shows it will create one single job. It just erodes workers’ rights and workers’ pay.”
Smith: Walkout unlikely
State Rep. Vernon Smith, D-Gary, said constituents call him all the time confused on the meaning of right to work.
They tell him, “I need a job. I have the right to work, too.”
“Most people don’t even understand the issue,” Smith said. “There is going to be a debate and other strategies probably used but as far as being able to stop anything — it’s a train coming down the track.”
Smith called the probability of another walkout unlikely.
“Am I willing to? Yes. Will we do it? I don’t think so,” Smith said.
Greater Valparaiso Chamber of Commerce President Rex Richards feels on both sides of the issue, some points haven’t been accurately reflected. The chamber is exploring right to work but hasn’t taken a formal position.
“Under the legislation that was proposed last year and in … states that have right to work it does not in any way write into law the elimination of unions,” Richards said. “Unions can function.”
Opponents of the legislation want state leaders to name the companies that haven’t come to Indiana because of its lack of right-to-work law, but Richards said such disclosure is unlikely.
“The reason why people advocating in favor of right to work cannot mention who the companies are that have looked and decided not to come to a different location in many instances you have to sign non-disclosure agreements,” Richards said.
Right to work is an additional incentive to give to companies exploring locating in the state, Richards said.
“The only way unions can increase their membership is if they can have companies to organize. So if Indiana has more companies locating to the state of Indiana doesn’t it make logical sense the unions could have more opportunities for increasing their membership,” Richards said.
Unions and society
Across the country talk has turned to unions and their place in society, said John Russo, co-director of Youngstown State University’s Center for Working Class Studies.
“Show me a state that doesn’t have unions or unions are declining, the standard of living for working people decreases,” Russo said. “It’s complicated. The question is - are you better off with or without unions? I would say you are better off to have unions because they play such a key role in developing the middle class and Democratic society.”
For Russo, the debate focuses on a central point.
“In my mind it really comes down to do we continue to have a middle class,” Russo said. “The fight will be around that.”