Local Right-to-Work Can Boost Economy, Freedom

Posted by Matt Patterson on Thursday, February 12th, 2015 at 1:37 pm - Permalink

 

Elected officials always look for ways to make their cities and counties more economically competitive. And businesses look for a variety of factors when deciding where to locate or open new facilities.

One of those factors is right-to-work.

The National Labor Relations Act (NLRA) provides that states may pass laws, commonly known as right-to-work, which forbid the compulsory collection of union dues. In the 24 states that have passed such laws, both employers and employees enjoy a freer and more flexible labor market.

But local officials needn’t wait for state legislatures to act. Some states delegate economic development authority to localities. Such delegation is called “home rule” and we believe home rule includes right-to-work.

In Kentucky, for example, multiple counties have passed local right-to-work ordinances in accordance with Kentucky’s home rule statute.

Warren County Judge-Executive Mike Buchanon says he is already seeing a benefit. The fast-growing county near Tennessee reports that since the local right-to-work ordinance passed, Warren is under consideration for 15 new business projects representing approximately $120 million in potential capital investment and roughly 2,100 potential new jobs.

No wonder both of Kentucky’s U.S. Senators support local right-to-work: Mitch McConnell and Rand Paul, in a joint op-ed published in The Bowling Green Daily News, write:

“We support Warren County’s recent move to pass its own right-to-work legislation…we applaud other counties in Kentucky following in their footsteps.”

It’s long been known that right-to-work can substantially boost economies:  Bureau of Labor Statistics (BLS) data show that between 1990 and 2014 total employment grew more than twice as fast in right-to-work states compared to states that force workers to pay union dues.

Right-to-work also reduces incentives for unions to target businesses: Labor bosses have les to gain financially by targeting businesses in right-to-work jurisdictions because employees can opt-out of dues.

There are good reasons to think courts will uphold local right-to-work ordinances. The U.S. Supreme Court has noted time and again that a state’s authority to determine how to govern itself is sacrosanct. The Constitution does not allow Congress to encroach on a state’s decision to govern itself by delegating authority to its political subdivisions.

Congress may preempt states from enacting certain laws pursuant to the Supremacy Clause. However, it would violate the Tenth Amendment to deny states the right to delegate authority to its political subdivisions to enact laws the states may properly enact, including right-to-work.

Workers are the big winners in right-to-work jurisdictions, where unions have strong incentives to provide valued services for the dues they charge. In non-right-to-work localities, labor bosses routinely abuse their labor monopoly, charging 10 percent higher dues and paying their top officers up to $20,000 more per year.

Right-to-work is good for employers, workers and union members. It’s good for state economies, and it can be good for local economies as well.

 

Grover G. Norquist

President, Americans for Tax Reform

 

Matt Patterson

Executive Director, Center for Worker Freedom

 

J.R. Gaylor

President & CEO, Associated Builders & Contractors, Inc. Indiana/Kentucky Chapter

 

Trey Grayson

President & CEO, Northern Kentucky Chamber of Commerce

 

Julia Crigler

Kentucky State Director, Americans for Prosperity

 

Russel M. Brown

President, Center for Independent Employers

 

Dave Adkisson

President & CEO, Kentucky Chamber of Commerce

 

Brad Richardson

President & CEO, Hardin County Chamber of Commerce

 

Brent Gardner

Vice President of Government Affairs, Americans for Prosperity

 

Lee Lingo

President, Madisonville-Hopkins County Chamber of Commerce

 

Brent Yessin

General Counsel, Protect My Check

 

Jim Waters

President, Bluegrass Institute