right to work: myth vs. fact

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  • 8/10/2019 Right to Work: Myth vs. Fact

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    Wisconsin Needs Right to Work

    Right to Work is Right for Wisconsin

    501 East Washington Avenue, Madison, WI 53703 | 608.258.3400 | www.wmc.org | WisconsinMC | WMC501 | @WisconsinMC

    What is Right to Work?

    Right to Work laws give workers the freedom to choose whether to belong to a labor union and pay dues. Right to Work protects employees byprohibiting them from being forced to join a union and pay dues as a condition of their employment.

    Right to Work does not eliminate existing unions, does not void existing labor contracts, does not prohibit collective bargaining, and doesnot prohibit workers from organizing a union.

    Economic Measures in Right to Work States

    Competitive Business Climate.Site selectors who advise businesseson where to expand or locate a new business say that 75% of theirclients view Right to Work as an important or very import factor,and typically half will not even consider investing in a forced-union state.1

    More Job Creation.During the 10-year period from 2004-2013,Right to Work states added 3.6 million jobs signifcantly more

    than the 1.5 million in forced-union states.2

    Faster Job Growth.From 2004-2013, Right to Work states grew jobsby an average of 5.3%, which is more than twice the rate of forced-union states (2.1%).3

    Higher Wage Growth.Right to Work states grew wages by anaverage of 15.1% from 2003-2013, while wage growth lagged inforced-union states at 8.2%.4

    Higher Manufacturing Output.Manufacturing GDP grew by 26.1%

    in Right to Work states from 2003-2013, compared to 13.8% inforced-union states.5

    More Disposable Income.When differences in cost-of-livingvariations between states are taken into account, employees in Rightto Work states had per capita disposable income of $38,915 in 2013,nearly $2,000 per year more than the $36,959 in forced-union states. 6

    More Workers.Right to Work states grew population by 4.9 millionpeople in the ten-year period from 2003-2012, while forced-unionstates lost 4.9 million people.7

    Common Right to Work Myths

    The Middle Class Argument.Unions often claim that Right to Workhurts the middle class. However, the objective data show that Rightto Work states have faster job growth, faster wage growth andhigher disposable income. Its unclear how any of those economicmeasures are bad for the middle class.

    The Poverty Argument.Opponents often argue that Right to Workwill reduce wages and lead to greater reliance on public welfareprograms. On the contrary, Welfare utilization is actually lower inRight to Work states at 5.8 TANF recipients per thousand in 2013.Thats less than half the rate of 16.7 welfare recipients per thousandresidents in forced-union states.8

    The Anti-Union Argument.Union leaders often characterize Right toWork as a policy to harm unions, but the data shows otherwise.In the period from 2010-2013, Right to Work states collectivelygrew union membership by 57,000 workers, while forced-unionstates actually lost 248,000 union members.9

    The Worker Training Argument.Opponents argue Right to Work willjeopardize training in the construction trades, but that has not beenthe experience in other states. In Wisconsin, skilled training is paidfor by employers, and is not dependent upon union dues. Moreover,Right to Work states have 28% more operating engineers employedper capita than forced-union states.10

    The Free-Rider Argument.Union leaders claim Right to Work is unfairbecause the union is required to represent all employees, even if theydo not pay dues. However, these exclusive representation agreementsare not mandatory, and unions are not required to negotiate these

    clauses into their contract.(Footnotes on reverse)

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    501 East Washington Avenue, Madison, WI 53703 | 608.258.3400 | www.wmc.or WisconsinMC WMC501 @WisconsinMC

    1 Area Development Magazine, November 2012, Beth Mattson-Teig2 U.S. Dept. of Labor - Bureau of Labor Statistics state employment data3 U.S. Dept. of Labor - Bureau of Labor Statistics state employment data4 U.S. Bureau of Economic Analysis & Bureau of Labor Statistics data as reported

    by the National Institute for Labor Relations Research, October 2014 Fact Sheet5 U.S. Bureau of Economic Analysis data as reported by the National Institute for

    Labor Relations Research, October 2014 Fact Sheet6 National Institute for Labor Relations Research, October 2014 Fact Sheet

    7 U.S. Census Bureau state population data, 2003-20128 U.S. Administration for Children and Families data as reported in the National

    Institute for Labor Relations Research, October 2014 Fact Sheet9 U.S. Department of Labor - Bureau of Labor Statistics data on annual union

    membership10U.S. Department of Labor - Bureau of Labor Statistics May 2013 data on

    operating engineers employment by state