Enactment of right-to-work (RTW) legislation is one of the Manufacturer & Business Association member’s top state legislative priorities, and has been for many years. The Commonwealth’s labor laws breed an environment that restricts employees and empowers unions. As a result, Pennsylvania’s economy has failed to maintain adequate job growth over the past 18 years and now ranks among the least business-friendly states in the nation (39 out of 50 according to a recent report).
From an economic standpoint, RTW states typically have higher economic growth rates and higher employment rates. From 2000 to 2008, nearly 4.7 million Americans moved from forced-union to right-to-work states, and a recent study found that there is "a very strong and highly statistically significant relationship between right-to-work laws and economic growth." From 1977 to 2007, right-to-work states experienced a 23 percent faster growth in per capita income than states with forced unionization.
A study from the Cato Institute (Richard Vedder, 2010) found that between 1970 and 2008, right-to-work states have almost doubled their population, while the population in non-right-to-work states has increased by only 26 percent. Another recent study by the Federal Reserve Bank of St. Louis (Garrett and Rhine, 2010) evaluates the impact of economic freedom on employment in different states. Economic freedom incorporates smaller government, less taxation and more labor market freedom. They find that states that have more economic freedom witness higher growth rates. In fact, this study found that state-level labor market policies influence employment growth more than national labor market policies.
Evidence suggests that RTW states have more manufacturing employment and economic development compared to non-RTW states over time. According to the U.S. Bureau of Labor Statistics, more manufacturing jobs have been created in RTW states than in non-RTW states.
A state’s decision to adopt RTW legislation brings jobs and companies to the state. Studies also have shown that RTW states enjoy a higher level of productivity. In addition, these states have a lower percentage of families living below the poverty level. Unions in these states tend to be more responsive and accountable. In non-RTW states, there is an ideological implication, as dues are used, in part, to support political candidates with whom union members may not agree. Studies have shown that voting registration of union members does not always match the political donations made.
There is a misconception that “right-to-work” is anti-union. However, right-to-work refers to legislation and laws that seek to protect an employee’s freedom of choice by prohibiting unions from negotiating contracts that would require the employee to join and financially support a union as a condition of employment. Unions still exist in RTW states and employees have the right to join them and pay dues, if they choose to. Unions have repeatedly presented arguments against these facts, but if you look at Oklahoma, the most recent state to enact right-to-work legislation, you will see that those arguments do not hold up. Prior to enacting RTW in 2001, the unions said that if Oklahoma adopted RTW laws, the state would experience lower wages and inferior health coverage, and that union membership would decline. Those concerns were unwarranted. After becoming a RTW state, Oklahoma had a statistically significant increase in real household income, and within one year of passing the legislation the number of Oklahomans covered by private health insurance increased by 54,000. In addition, the RTW laws did not have a statistically significant negative effect on either union membership or union representation.
- As of today, there are 22 Right-to-work (RTW) States.
- Nine of the top 10 best states for business are in right-to-work states (and 13 of the top 15 are RTW states). The bottom 10 (worst states for business) are all non-RTW states
- Employment Growth (2003-2008): 9.1% RTW States, 3.6% non-RTW States
- Personal Income Growth (2000-2010): 28.3% RTW States, 14.7% non-RTW States
- Population Growth (2000 – 2009): 12.2% RTW States, 6.0% non-RTW States
- Growth in Real Manufacturing GDP (2000-2008): 20.9% RTW States, 6.5% non-RTW
Here is another great article on Right-to-work, from The Wall Street Journal. Between 2000 and 2008, 4.8 million Americans moved from forced union states to right-to-work states—that's one person every minute of every day.
My understanding is that Boeing's contract specifically states that the location of production is not a union negotiated issue.
Close, new production to be specific. Since this is new production, they really have no say in the matter.