Governor: Bill Will Be Introduced To Make Michigan 24th Right-To-Work State
'When it arrives on my desk, I plan on signing it'
Michigan Governor Rick Snyder said today that a bill will be introduced that would make Michigan the nation's 24th right-to-work state.
"When it arrives on my desk, I plan on signing it," he said.
In a press conference with the House and Senate Majority leaders and three union members, the Governor suggested that a bill would be introduced today.
Under the legislation, employees would only pay union representation fees (also called "agency fees") if they chose to do so. Federal law prohibits workers from being required to be union members and pay union dues as a condition of employment. However, unless a state has a right-to-work law, employees in companies where a union already exists are forced to pay union fees if they don't pay the dues. Typically, the fees are nearly as costly as the dues.
"I'm asking that we pass an act that gives workers freedom in the workplace," said Governor Rick Snyder.
The governor called it "pro-worker" and said he wants it "promptly and efficiently."
The Governor said the legislation will cover both public and private-sector with one carve out for public safety, meaning police and fire personnel. He said this was because of their "unique status" and cited Public Act 312, which creates a binding arbitration process for labor disputes.
"This is about fairness ... it is not about Republican vs. Democrat or worker vs. management," said Republican House Speaker Jase Bolger. "[Workers] deserve the freedom to choose which organizations they want to join and which organizations they do not want to join."
"We have come together and believe this is the time to tackle this issue and do something about it," said Senate Majority Leader Randy Richardville. Richardville went on to note that he is generally in favor of collective bargaining and believes most members will choose to stay with the union.
All three Republican leaders emphasized that they support collective bargaining rights, but that union members should have a choice. They were joined on the panel by three union members: A teacher from Hamtramck, an AFL-CIO worker and a UAW member with Ford – the first two said they plan on staying with their union, but want people to have the choice.
"Right-to-Work states have higher population growth, higher wage growth and greater job creation," said Vincent Vernuccio, labor policy director with the Mackinac Center. "Michigan is one step closer now to bringing more job creators and businesses to our state."
The introduction of a right-to-work bill comes after the state's unions spent more than $23 million on Proposal 2, which would have permanently banned a right-to-work law in Michigan. Voters rejected the constitutional amendment change by a margin of 57 percent against to 43 percent in favor.
Immediately after the election, union executives defended their decision to try and guarantee forced unionism in the state constitution, but also began asking voters, business owners and Republican legislators to not pass a right-to-work bill because it would be divisive.
After Thanksgiving, unions began urging their members to call legislators to encourage a vote against any right-to-work bill. Training sessions also were held for those making calls, telling them how to act on the phone and what to say. Robocalls also reportedly were being made as well.
"I haven't personally heard the robocalls, but I've heard about them," Rep. Mike Shirkey, R-Clark Lake said. “The unions are definitely trying to stop the Freedom to Work legislation."
Union attempts to block right-to-work legislation are counter to public opinion. Polls taken last spring showed that about 57 percent of likely voters supported Michigan becoming a right-to-work state.
Passing a bill in the lame-duck session puts the vote in front of existing Legislators who are familiar with the issue. After the beginning of the year, new Legislators take office.
Adoption of a right-to-work law in Michigan would be significant nationally. Michigan would be the first state with a large percentage of union workers to pass such a measure. A little more than 17 percent of the state’s workers belong to a union, the fifth-highest percentage of unionized workers in the United States.
Last winter, when neighboring Indiana became the first Rust Belt state to adopt a right-to-work law, pressure intensified for Michigan to follow suit. However, Gov. Rick Snyder wasn't anxious to pick a fight with the unions over the issue.
The dynamics, however, changed after the November elections, and in line with a national (and increasingly bipartisan) trend against overreach by many government unions that continue to demand benefits that exceed those of the taxpayers.
"When this becomes law, unions will be free to make their case, but workers will be free to make their choice," said Bolger.
Michigan Capitol Confidential is the news source produced by the Mackinac Center for Public Policy. Michigan Capitol Confidential reports with a free-market news perspective.
Michigan Still Worse Economically Than RTW Oklahoma
Last week, I wrote a blog post (”MEA Misleads on Oklahoma Right-to-Work Numbers”) about Michigan’s largest labor union claiming that since Oklahoma became a right-to-work state in 2001, “10 years later, jobs fell by 25 percent and the number of companies moving there dropped by 33 percent.” As I pointed out, this is false: Jobs in Oklahoma are up 3.8 percent since 2001 while Michigan, on the other hand, lost 13.8 percent of its jobs during the same time, according to the Bureau of Labor Statistics.
After the piece was published, the MEA changed its website to offer a citation for its claim. You can see a saved screen-shot of the website before the update here, and click here for the added citation.
The MEA now says, “10 years later, jobs fell by 25 percent and the number of companies moving there dropped by 33 percent, according to economist Lawrence Mishel, president of the Economic Policy Institute.” First off, the study it links to was published Aug. 1, 2001, a month before Oklahoma voted to become a right-to-work state. Also, the link is to an edited group of statements from a variety of economists on the left mainly focusing on other reasons Oklahoma is growing besides the right-to-work legislation. Nowhere in the link is “25 percent” or “33 percent” used at all and it does not mention the number of companies that moved to the state.
Mishel, the economist the MEA cites, is the president of the Economic Policy Institute — a union-funded and run think tank. I sent him an email asking where the research is showing a 25 percent drop in jobs or 33 percent drop in companies moving to the state. He wrote back that the MEA has the incorrect link: “The data [is] on pp. 8 and 12 of the 2011 report ‘Does RTW Create Jobs? Answers from Oklahoma.’”
But that study doesn't show a loss of jobs in Oklahoma at all, much less 25 percent. Page 8 of the study he cites shows a loss of manufacturing jobs in Oklahoma, which tracks very closely with what has happened across the country. Page 12 gives us a table of “announced openings” of certain facilities in the state. This tells us little: Michigan was a leader in job announcements and business expansions via the state government’s “economic development” arm for much of the past decade — but lead the nation in jobs loss.
The Oklahoma Council of Policy Affairs critiqued the study on a few fronts. OCPA fellows Scott Moody and Wendy Warcholik explain:
“Still, we get it,” says the group. “Increased manufacturing productivity and population growth mean little to a union employee who is concerned that right-to-work legislation will eventually mean fewer jobs and lower wages to go around. So, let's home in on the most important facts. After Oklahoma passed right to work, the number of jobs in the state grew and wages went up.”
The specifics: “The State Chamber recently reported that Oklahoma’s personal per capita income (PCPI) has grown from $23,517 in 2001 to $35,268 in 2010, a 50 percent growth rate over that period. From 1999 to 2008, Oklahoma had the fourth highest PCPI growth rate in the nation, primarily due to Right to Work.”
As the legislative debate over Michigan becoming a worker freedom state continues, expect to see more distortions. We’ll do our best to keep up with them.
Michigan Capitol Confidential is the news source produced by the Mackinac Center for Public Policy. Michigan Capitol Confidential reports with a free-market news perspective.
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