What Does Right to Work Mean for Job Creators?
Michigan yesterday became the 24th state to enact right-to-work legislation, but only the second in the industrial Midwest. Last year, Indiana blazed the trail that made this week’s events possible, introducing what had largely been a Southern and Western phenomenon to a blue-collar region of the country long influenced by union power.
Since Gov. Mitch Daniels signed Indiana’s right-to-work bill in February, Hoosiers have adapted to the new law, and have found that its impact on the state’s economy extends far beyond the issue of forced unionization. Small business owners, for example, have taken the new law not only as an impetus to hire more workers, but also as a sign that the government supports free enterprise and job creators.
Small Business Booming
In the 10 months since Indiana passed right-to-work, 90 companies have told the Indiana Economic Development Cooperation that the new law will affect their decision-making process on locating current and future projects. This means that these companies see right-to-work as a potential incentive to do business–and thus, hire workers–in Indiana.
Of these companies, 67 have progressed in talks with the IEDC to what the agency refers to as the “pipeline stage,” and 31 have accepted the IEDC’s offer to proceed with business projects in the state, creating 3,700 jobs with the potential for over 5,000 more. Over $400 million has been invested through these post-right to work projects, and the IEDC projects that as much as $2.5 billion more in capital could make its way to Indiana.
A call to the IEDC, asking for clarification on the meaning of “pipeline stage” and how the agency arrived at its estimates, was not returned.
- Solid evidence elusive in right-to-work debate (cnsnews.com)
- In right-to-work debate where’s the evidence? (+video) (csmonitor.com)
- The Indiana Economic Development Corporation (IEDC) (pols3310.wordpress.com)
- RDA approves $4.45 million to attract three companies (nwitimes.com)