Benefits of Right to Work Laws 

Study: Right to Work Law Would Have Significantly Helped Indiana Workers, Families During Past Four Decades

As Indiana's state legislators discuss the merits of passing Right to Work protections for Hoosier workers, a group of scholars released a study last week confirming (pdf) workers and their families in Right to Work states benefit from workplace freedom in a very tangible way. From a press release announcing their findings:

Improving the per-capita income of Indiana workers and creating more job opportunities for Hoosiers would be among the major benefits of Indiana becoming the 23rd state to pass a right-to-work (RTW) law, according to research released today by the Indiana Chamber of Commerce. In addition, statewide voter polling results show Hoosiers favoring adoption of RTW by a 3-to-1 margin.

Dr. Richard Vedder, an Ohio University economist, and his colleagues report in the study (Right-to-Work and Indiana's Economic Future) that if Indiana had adopted RTW in 1977, per-capita income would have been $2,925 higher -- or $11,700 higher for a family of four - by 2008. Looking forward (projecting the same growth rate in the next 10 years after adjusting for inflation), passage of a RTW law in 2011 would raise per capita income by $968 -- or $3,872 for a family of four -- by 2021.

The scholars conclude that a Right to Work law would benefit workers with greater job growth and real personal income. These results mirror the thorough research conducted by the National Institute for Labor Relations Research (NILRR), which has found that families benefit from Right to Work laws with more job availability and higher expendable income. No wonder workers and their families are seeking greater workplace freedom, leaving forced unionism states in droves.

Union Bosses Forced to Drop $200,000 Lawsuit against Unemployed Carpenter

News Release

Union Bosses Forced to Drop $200,000 Lawsuit against Unemployed Carpenter

Union officials failed to find work for carpenter, then retaliated against him for working to support his family without paying tribute to union bosses

Chicago, IL (December 10, 2010) – Chicago Regional Council of Carpenters (CRCC) union bosses have dropped a lawsuit against an unemployed carpenter for working to provide for himself and his family after union officials had no work for him.

After he lost his full-time job, Richard Crenshaw – who specializes in door carpentry – was hired by a friend who was a contractor. Up until then, Crenshaw was working as a handyman to make ends meet.

A CRCC union official discovered Crenshaw was working at his friend’s jobsite and union officials initiated internal disciplinary proceedings against him. The union hierarchy levied a fine of $201,250 and filed a civil lawsuit in the Circuit Court of Cook County.

Read the entire release here.

Report: Working Families Fleeing Forced-Unionism States to Find Workplace Freedom and Economic Prosperity

The National Institute for Labor Relations Research (NILRR) has just released a report entitled "Tax-Paying Families Are Fleeing Forced-Unionism States" that details how and why families are moving from the 28 states that do not protect employees from forced unionism to the 22 states that do:

The IRS’s Statistical Information Service (SIS)... data for the Tax Filing Year 2008 show that a total of 1.523 million personal income tax filers were residing that year in a Right to Work state after residing somewhere else in the 50 states or the District of Columbia the previous year.  Meanwhile, a total of 1.338 million tax filers were residing in a Right to Work state in 2007, but filed from one of the other 49 states or the District of Columbia in
2008.

That means a net total of 185,000 tax filers moved from a forced-unionism state to a Right to Work state between 2007 and 2008.

The SIS also calculates and makes available to the public the aggregate adjusted gross incomes for migrating households in the year immediately following the move.  Personal income tax filers moving to a Right to Work state between 2007 and 2008 reported a total of $76.432 billion in income in 2008, or roughly $50,190 per filer.  Tax filers moving out of a Right to Work state during the same period reported a total of $61.773 billion in income in 2008, or roughly $46,165 per filer.

Both because of their substantial taxpayer losses due to net domestic out-migration, and because the taxpayers they gained earned significantly less per capita in 2008 than did the taxpayers they lost, forced-dues states lost a total of $14.659 billion in adjusted gross 2008 income in a single year.

 

The research report also highlights how those workers who flee forced unionism benefit with an adjusted gross income more than $4000 higher than their counterparts who moved from a pro-worker freedom state into a forced unionism state.

Of course, the most important aspect of why workers are fleeing to Right to Work states is because Right to Work laws give workers the needed protections to counter Big Labor's forced dues monopoly in the workplace.  Right to Work laws allow workers to keep their own hard-earned money if they find union dues payment to be objectionable or even just undesirable. Because of that right, Right to Work laws allow independent-minded workers the ability to better hold union bosses accountable for their actions.

To read the full NILRR report, click here.

Fact Sheet: Union Monopoly Privileges Linked to Lower Earnings and Disposable Incomes for Workers

Contrary to the usual propaganda union bosses would like you to believe, the National Institute for Labor Relations Research (NILRR) -- an anti-compulsory unionism think tank that exposes the harm forced unionism inflicts on workers -- released a report today entitled "Union Monopoly Linked to Lower Purchasing Power" that details how workers in least-unionized states enjoy the benefits of higher cost-of-living-adjusted earnings and disposable incomes.

You see, not only does government-granted union monopoly bargaining privileges infringe on employees' individual liberty, it also harms employees' economic interests.

According to NILRR:

As of 2008, according to economists Barry Hirsch and David Macpherson, 8.4% of private-sector employees nationwide were under “exclusive” union representation. But in 15 states -- Alaska, California, Hawaii, Illinois, Indiana, Michigan, Missouri, New Jersey, Nevada, New York, Ohio, Pennsylvania,. Washington, West Virginia and Wisconsin --10.0% or more of private-sector workers were unionized.

...

In 2008, cost of living-adjusted average weekly earnings in the states with 10.0% or more of private-sector employees subject to union monopoly bargaining were $770.

That’s $48 less than the average in the states with private-sector unionization of 5.0% or less. (These low-union density states are: Arkansas, Florida, Georgia, Louisiana, New Hampshire, North Carolina, North Dakota, Oklahoma, South Carolina, South Dakota, Tennessee, Texas, Utah and Virginia.) That comes to a roughly $2500-a-year disadvantage for full-time workers in states with high monopoly-bargaining density.

Aggregate cost of living-adjusted weekly earnings for states with private-sector union density of 5.1% to 9.9% were $783, or, for full-time workers, nearly $700 a year more than in the highest-union-density states, but more than $1800 a year less than in the lowest-union-density states.

NILRR also reports that "disposable income data tell the same story."

The economic benefits of voluntary union membership should come to no surprise to regular Freedom@Work readers, as we reported last month in "Compulsory Unionism Bankrupting States: Workers Flee to Right to Work States for Jobs":

NILRR recently found an especially strong correlation between a state’s Right to Work status and its job growth, while employees in Right to Work states are benefiting from faster job growth and higher real purchasing power than their compulsory unionism counterparts.

To view NILRR's fact sheet "Union Monopoly Linked to Lower Purchasing Power", click here.

Compulsory Unionism Bankrupting States: Workers Flee to Right to Work States for Jobs

As the current economic downturn continues, many states across the nation are starting to find it increasingly difficult to stay afloat after having capitulated to the union bosses' extortionate demands.  Last week, the Wall Street Journal cited the National Institute for Labor Relations Research (NILRR) -- an anti-compulsory unionism think tank that exposes the harm forced unionism inflicts on workers -- when discussing Big Labor's contribution toward the severe financial difficulties California, New York, and New Jersey are experiencing and the migration of workers leaving these forced-unionism states:

Powerful unions. Mr. Obama believes union power is a ticket to the middle class. The middle class is getting creamed in all three of these "progressive" states, where organized labor is king. The unionized share of the workforce is 20% in California, 19% in New Jersey and 27% in New York compared to 13% across the country. All three are non-right-to-work states, have super-minimum wage requirements and provide among the nation's most generous public-employee pensions.

Workers in these paradises are indeed uniting -- by leaving. New York ranks first, California second and New Jersey third in moving vans leaving the state. A study by the National Institute for Labor Relations Research found that over the past decade these and other high-union states (mostly in the Northeast) had one-third the job growth of states with low union penetration.

NILRR recently found an especially strong correlation between a state’s Right to Work status and its job growth, while employees in Right to Work states are benefiting from faster job growth and higher real purchasing power than their compulsory unionism counterparts.

Perhaps it's also worth revisiting a Wall Street Journal article penned late last year by National Right to Work President Mark Mix, reminding us that a massive expansion in forced unionism power played a key role in making the Great Depression longer and deeper.

Forced Dues Campaigning in California

The employee-led uproar over forced union dues taken by SEIU Union Local 1000 in California has prompted a top union official to campaign in favor of forced dues.

The article states that a "majority of the employees that attended the event disagreed," citing "non responsiveness" on behalf of the union hierarchy. As we've noted before, aside from protecting freedom of choice, Right to Work laws promote accountability of union officials to rank and file workers.

The article also states:

Also, employees were not happy that although state employees recently received a three percent pay raise, the Union countered with a 1.5 union fee increase taking away almost fifty percent of the wage increase.

No wonder these employees aren't happy, almost half of their raise was swallowed up by forced union dues!


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