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View Full Version : So-called "Right to Work" Laws Don't Create Jobs



Cigar
12-11-2012, 02:35 PM
http://www.youtube.com/watch?v=qdoIFEKRreA&feature=player_embedded

Fred Morgan, President and CEO of Oklahoma's State Chamber, admits that he can't name a single company that has moved to Oklahoma or added jobs due to the state's so-called "Right to Work" legislation.

This footage originally aired on December 7th, 2012 on the Oklahoma News Report.

wazi99
12-11-2012, 02:40 PM
(source: Regional and State Employment and Unemployment Summary, Bureau of Labor Statistics, 01/27/09; Local Area Unemployment Statistics, Bureau of Labor Statistics;
http://www.bls.gov/lau/)

First we need to understand the difference between Right to Work and Employment at Will:

Right to Work: The Taft-Hartley Act of 1947 granted states the right to pass right-to-work laws. In a state that adopts a right-to-work law, a company cannot force an employee to join a union or pay union dues if he chooses not to. Unions may operate in right-to-work states and may include non-union workers in their collective bargaining issues. But they can't insist that the employees join. About half the states have right-to-work laws. An argument for them is that employees have a right to choose. Arguments against right-to-work laws claim that the unions have less bargaining power when they're in place.



Employment at Will:
According to an article written by Charles Muhl in the January 2001 issue of the Monthly Labor Review, published by the U.S. Bureau of Labor Statistics, the employment-at-will doctrine states that if an employee doesn't have a written contract with a specific time duration, "the employer can terminate the employee for good cause, bad cause, or no cause at all." Essentially this means that without a contract, no employee has job security. But employees who feel they were unjustly terminated still have legal ways to fight back.

Right-to-work States Outperform,1997-2007



Productivity Growth
Job Growth
Economic Growth


Right-to-work
18.6%
17.6%
41.6%


Union shop
17.3%
8.9%
33.5%


Private Sector, Real chained 200 dollars.
Sources: GDP by state from U.S. Bureau of Economic Analysis and state employment from U.S. Bureau of Labor Statistics
The following chart compares economic growth in the ten states with the greatest percentage of the private sector workforce in unions to the ten states with the lowest percentage
http://www.americansforprosperity.org/files/images/state%20growth.png
The ten most heavily unionized states saw 29.2% job growth and a 45.3% increase in GDP. The ten states with the lowest union concentration had substantially better economic performance: a 36% increase in private sector jobs and a 69.9% increase in GDP.
http://www.americansforprosperity.org/files/images/private%20job%20growth.png
States that have allowed this freedom experienced tremendous growth as business move their operations to states that promote a friendly business environment.
http://www.americansforprosperity.org/files/images/state%20growth.png
Right to work states have had more than double the population growth of union shop states since 1990. The right to work states saw, on average, a 65.5% increase in GDP over the 16 year period while states with union shops laws only experienced an average of a 45% increase. The wages of workers in right to work states rose an average of 23% in right to work states while in union shop states average wages only rose 15%.
III. Research that EFCA is bad for business
Top line summary of the research: Studies have found that:
1) Real GDP was depressed by about $3.5 trillion dollars from 1947 to 2000 due to unions. If you added the decrease in real wages paid to employees, the total impact rises to more than $50 trillion.
2) From 2001 to 2006, the economies of states where unionizing is more difficult outperformed more than union-friendly states in total economic growth, job growth, gross state product, and per-capita disposable income.
* One study found that union-produced “deadweight” loss to the US economy of 0.91% of GDP in 1980 and 0.34% of GDP in 2000 (noting that the effect on GDP declined as union membership declined).
* The study also found a shortfall in real GDP of about $3.5 trillion dollars from 1947 to 2000 due to unions. If you added the decrease in real wages paid to employees as a result of unions to the impact on the country’s GDP, the total impact of unions for the period 1947 to 2000 exceeded $50 trillion.
* The Michigan-based Mackinac Center for Public Policy – using data from the U.S. Bureau of Economic Analysis – compared union-heavy Michigan to less unionized states with right-to-work laws. The report found that:
- Michigans average annual growth in real gross state product (the market value of all goods and services produced in a state) was only 1.8 percent from 1977 to 1999. Right-to-work states, with much lower levels of unionization, saw their real gross state product growth rate almost double Michigans rate at 3.4 percent.
- Michigans average annual employment growth was only 1.5 percent from 1970 to 2000, whereas right-to-work states grew by 2.9 percent.
- Michigans manufacturing growth actually declined during this time period by 0.3 percent whereas right-to-work states saw an increase in manufacturing job growth by 1.5 percent.
- The overall poverty rate for right-to-work states dropped by 6.7 percent from 1969 to 2000, while Michigans poverty rate increased by 0.6 percent.
Low State Unemployment Rates / Dec 2008: Preliminary Figures
U.S. National Average¦ 7.2
State Rate Right To Work (see list below)
Wyoming …….. 3.4 Right To Work
North Dakota …. 3.5 Right To Work
South Dakota 3.9 Right To Work
Nebraska …… 4.0 Right To Work
Utah ……………..4.3 Right To Work
Iowa ……………..4.6 Right To Work
New Hampshire 4.6
New Mexico 4.9
Oklahoma ……… 4.9 Right To Work
West Virginia ……4.9
Kansas ………….. 5.2 Right To Work
Montana ………… 5.4
Virginia ……………5.4 Right To Work
Hawaii …………….5.5
Maryland …………5.8
Louisiana ………… 5.9 Right To Work
Texas …………….. 6.0 Right To Work
Colorado 6.1
Arkansas 6.2 Right To Work
Delaware 6.2
Wisconsin 6.2
Vermont 6.4
Idaho 6.4 Right To Work
Alabama 6.7 Right To Work
Pennsylvania 6.7
Arizona 6.9 Right To Work
Massachusetts 6.9
Minnesota 6.9
Maine 7.0
New York 7.0
Connecticut 7.1
New Jersey 7.1
Washington 7.1
(source: Regional and State Employment and Unemployment Summary, Bureau of Labor Statistics, 01/27/09; Local Area Unemployment Statistics, Bureau of Labor Statistics;
http://www.bls.gov/lau/)
Right to work states
* According to the National Right to Work Legal Defense Foundation, there are 22 “right to work” states:
Of the 22 “right to work” states, 15 had unemployment rates below the national average in December 2008; 7 had unemployment rates higher than the December national average
1. Alabama
2. Arizona
3. Arkansas
4. Florida 8.1 (December Unemployment Rate)
5. Georgia 8.1 (December Unemployment Rate)
6. Idaho
7. Iowa
8. Kansas
9. Louisiana
10. Mississippi 8.0 (December Unemployment Rate
11. Nebraska
12. Nevada 9.1 (December Unemployment Rate)
13. North Carolina 8.7 (December Unemployment Rate)
14. North Dakota
15. Oklahoma
16. South Carolina 9.5 (December Unemployment Rate)
17. South Dakota
18. Tennessee 7.9 (December Unemployment Rate)
19. Texas
20. Utah
21. Virginia
22. Wyoming.

Read more here: http://aphiemi.wordpress.com/2009/02/20/facts-on-right-to-work-vs-forced-union-states/

wazi99
12-11-2012, 02:50 PM
http://www.youtube.com/watch?v=qdoIFEKRreA&feature=player_embedded

Fred Morgan, President and CEO of Oklahoma's State Chamber, admits that he can't name a single company that has moved to Oklahoma or added jobs due to the state's so-called "Right to Work" legislation.

This footage originally aired on December 7th, 2012 on the Oklahoma News Report.

Asking one random person if it creates jobs is not proof. I know its hard for Democrats to understand complex numbers like unemployment rates in states but look at my last post to see real stats of Right to Work vs At Will states.

Chris
12-11-2012, 02:52 PM
To me right to work is about creating a competitive job market instead of a coerced one.

Cigar
12-11-2012, 02:54 PM
The Middle-Class was built via Unions ... everyone works days are because of Unions ... Vacations ...


Hey ... enjoy the trip to extinction

wazi99
12-11-2012, 02:57 PM
The Middle-Class was built via Unions ... everyone works days are because of Unions ... Vacations ...


Hey ... enjoy the trip to extinction


That was true back in the early 1900s but now that is all controlled by federal law. Federal stats clearly show Unions now hurt growth of the middle class. They limit who can work in Union shops and have just become a protection racket for members and do their best to keep non Union workers out.

wazi99
12-11-2012, 02:58 PM
Unions can still run in Right to Work states they just have to convenes people there is a benefit to paying them dues. If they really are helping people that should be a easy sale.

Cigar
12-11-2012, 02:59 PM
That was true back in the early 1900s but now that is all controlled by federal law. Federal stats clearly show Unions now hurt growth of the middle class. They limit who can work in Union shops and have just become a protection racket for members and do their best to keep non Union workers out.

... yea ... and the Tax Cuts will bring prosperity (2001)

Well ... where is it?

Agravan
12-11-2012, 02:59 PM
As usual, you have no idea what you are talking about and your post looks like it was written by a 5 year old.

Cigar
12-11-2012, 03:00 PM
As usual, you have no idea what you are talking about and your post looks like it was written by a 5 year old.


Isn't Reaganomics around 30 years old ... sport?

Agravan
12-11-2012, 03:01 PM
... yea ... and the Tax Cuts will bring prosperity (2001)

Well ... where is it?
They did, and the money was squandered when Dems took over Congress.

Agravan
12-11-2012, 03:02 PM
Isn't Reaganomics around 30 years old ... sport?
Your point ... punk?

roadmaster
12-11-2012, 03:02 PM
There is a lot of bad in the right to work states too.

Chris
12-11-2012, 03:06 PM
The Middle-Class was built via Unions ... everyone works days are because of Unions ... Vacations ...


Hey ... enjoy the trip to extinction


I'm sure liberals like you believe that bullcrap.

And no one's argued Reaganomics, stop trolling.

Why are you writing like exo?

wazi99
12-11-2012, 03:14 PM
There is a lot of bad in the right to work states too.

Nothing is perfect there is a lot of bad in At Will States. I do not see what point your trying to make here.

wazi99
12-11-2012, 05:23 PM
I love how Cigar (http://thepoliticalforums.com/members/294-Cigar) never brings any facts to his arguments like this.

wazi99
12-11-2012, 05:31 PM
Here is a better question for your video Cigar (http://thepoliticalforums.com/members/294-Cigar) has anyone ever moved to a At Will state for because it was a At Will state?

Captain Obvious
12-11-2012, 05:31 PM
Of course they create jobs.

There is demand for labor and when labor costs are de-inflated, employers can pay less wages for more labor. And by less wages, I mean market wages. We can then produce and compete on the global market - which generates more wealth domestically and furthers production and jobs.

The two-fer here is that RTWL's weaken unions and reduce corruption.

Chris
12-11-2012, 05:51 PM
Of course they create jobs.

There is demand for labor and when labor costs are de-inflated, employers can pay less wages for more labor. And by less wages, I mean market wages. We can then produce and compete on the global market - which generates more wealth domestically and furthers production and jobs.

The two-fer here is that RTWL's weaken unions and reduce corruption.

That makes sense.

patrickt
12-11-2012, 07:37 PM
Right to Work is, for me, about the right to work without being involved in organized crime. Even in a right to work state, you are still facing a criminal union with the federal government on their side but you can still work.