SBAM Urges “No” Vote on Repeal of Right to Work Legislation
January 23, 2023
SBAM has joined a coalition working to encourage legislators to protect workers’ freedom by voting “NO” on legislation to repeal Michigan’s landmark Right-to-Work law, including House Bills 4004-5 and Senate Bills 5 and 34.
Right to Work is about freedom and personal choice. Right-to-Work is about the freedom of employees to decide whether to pay dues or other equivalent fees to labor unions as a condition of employment, even in workplaces covered by union contracts. It gives people a personal choice in how to spend their hard-earned wages.
The benefits of Right-to-Work have positively impacted all Michiganders:
- More jobs:* In the 9 years prior to Right-to-Work, Michigan’s labor force was down 350,657, in the 9 years after Right-to-Work, Michigan’s labor force is up 90,648.
- Higher pay**: Inflation-adjusted average incomes rose just 0.6% in the nine years before Michigan’s Right-to-Work law and grew 21.9% in the nine years following Michigan’s Right-to-Work law.
- Better benefits**: The average employee benefits package per worker is up 5% above inflation over the last 10 years.
- Healthier state budget^: The state budget, excluding federal revenue and the small amounts of local and private funding, was down 17.9% in the 10 years prior to Right-to-Work when adjusting for inflation. The inflation-adjusted budget was up 15.3% in the 10 years after passing Right-to-Work.
- Stronger Economic Development: A Harvard study found that the share of manufacturing employment was 28% higher in right to work states than the non-right to work states they bordered. Importantly, they also find that “wages and labor compensation do not appear to be lower on average.“
Today, 28 states have Right-to-Work Laws (either by statutes or by constitutional provision). Being a Right-to-Work state makes Michigan more competitive with neighboring states and nationally. It helps Michigan compete for desperately need economic development projects and new jobs. Put simply, if a company is choosing between a site in a Right to Work state and another in a state without a law in place, that factor can positively influence the decision.
Retaining Michigan as a Right-to-Work state is not just good policy, it is the right thing to do for the people of Michigan.
Sources: *Bureau of Labor Statistics **U.S. Bureau of Economic Analysis ^Senate Fiscal Agency