INDIANAPOLIS | The main provisions of Indiana's new right-to-work law don't take effect until Wednesday, but Gov. Mitch Daniels said just enacting the labor policy has begun paying dividends for the state.
"We've already signed new agreements with three companies, one announced and two to come soon," Daniels said Monday. "There are 31 companies as of Friday night now on our negotiation rolls who've identified right-to-work as a major, if not the major, factor in their interest in Indiana."
The announced company is MBC Group, a manufacturer of packaged and printed materials that plans to add 101 jobs by 2014 to its existing facilities in Brookville, near Cincinnati.
Owner Eric Holloway said passage of right-to-work made the decision to expand in Indiana "a no-brainer."
In addition, the Indiana Economic Development Corp. awarded the company up to $625,000 in tax credits and $100,000 in training grants based on its expansion plans. Local governments are also considering property tax abatement.
Despite criticism from Democrats, the Republican governor is confident right-to-work will be a boon for Indiana. Opponents of right-to-work have said higher unemployment is more common in states that prohibit a business and union from agreeing to require nonunion employees pay fees for union-provided services.
"I probably underestimated how important that addition to our already excellent business climate this was going to be," Daniels said.