ANALYSIS: Indiana vote part of national trend

February 2, 2012

By Kevin Mooney | Statehouse News Online

Democratic Party leaders and union officials’ concerted efforts to block right-to-work legislation in Indiana came up short Wednesday, when Gov. Mitch Daniels signed off on the measure shortly after it passed the state Senate

Not long ago, it would have seemed farfetched for a rust-belt state like Indiana to enact a measure that prohibits union contracts from requiring all workers to pay a fee to the union.
 
But Wednesday’s vote is part of the nation’s changing mosaic of labor relations.
Governors and legislatures nationwide are taking steps to curtail the power of public- and private-sector unions.
 
In Indiana this week, private-sector unions took the hit. But last year, public-sector unions in Wisconsin saw their power dissipate.
 
Governors from both parties in states like Ohio, New Jersey and New York have confronted public employee unions with varying degrees of success. But what is surprising is the confrontation is taking place. Not long ago labor confrontation was akin to political suicide in historically pro-union states such as these.
 
But, not all states are part of this national trend.
 
For example, Wednesday, Illinois Gov. Pat Quinn extolled the virtues of organized labor during his State of the State address.
 
“Having a good union workforce like Caterpillar and John Deere and Ford and Mitsubishi and Chrysler; they all have — Navistar as well — they’re all organized by the (United Auto Workers) and the UAW believes in making sure that people get a decent wage, get a decent health-care plan and a decent retirement,” Quinn said.
 
But other neighbors of Indiana are more likely to follow their own right-to-work proposals.
 
“Michigan and Ohio (will) have to respond. If they don’t, Indiana would start taking a lot of their business,” said Vincent Vernuccio, a labor policy counsel with the Competitive Enterprise Institute, or CEI.
 
CEI is a public policy nonprofit dedicated to advancing the principles of limited government, free enterprise and individual liberty.
 
No matter whether neighboring states follow the Hoosier example, what happened Wednesday stands out.
 
More than a decade has passed since Oklahoma lawmakers approved the last right-to-work legislation in 2001. Indiana will become the nation’s 23rd right-to-work state.
 
While each state’s labor issues are unique, unions and their legislative allies have taken similar approaches to countering legislation curtailing their power.
 
Last month, Indiana House Democrats staged repeated walkouts to deny a quorum and delay action on the right-to-work proposal.
 
Wisconsin’s state Senate Democratic caucus likewise staged a walkout last year, aimed at scuttling reforms advanced by Republican Gov. Scott Walker that curtailed public employee benefits and collective bargaining.
 
And in Wisconsin, unions took to the streets to protest the changes. In Indiana, union leaders are making similar threats.
 
In fact, some union officials have threatened to disrupt the Super Bowl scheduled for Feb. 5 in Indianapolis.
 
“You can tell them we’ll take the Super Bowl and shove it,” Jeff Combs, an organizer with the Teamsters Local 135 based in Indianapolis, has said in news interviews. The Teamsters played a major role in staging anti right-to-work protests at the Indiana statehouse.
 
And organized labor can flex its political muscle at the ballot box.
 
Teamsters General President Jim Hoffa warns of severe political repercussions for Daniels and his party.
 
“If Gov. Daniels signs this legislation into law, he will betray the trust of men and women who helped put him in office,” Hoffa said in a statement.
 
“I have little doubt in my mind that Gov. Daniels and Indiana’s Republican members of the state House and Senate will see a tremendous backlash from their constituents if right to work is passed. If there’s one thing that we have seen this past year, it’s that working men and women will rise up to challenge any legislation that threatens the welfare of their families.”
 
Similar threats were made last year in Wisconsin by other union leaders against Walker, who is now the target of a potential recall election.
 
The issues that underlie the legislation in Indiana have been debated for decades — personal freedom and economic competitiveness.
 
“Right to work offers freedom for individuals to choose whether or not to associate with labor unions. I am also convinced we’ll see more employers look at Indiana when they consider expanding or moving their operations. This will mean more job opportunities for the quarter million or so Hoosiers who are unemployed,” said Indiana Rep. Jerry Torr, R-Carmel, and House sponsor.
 
In 2009, for the first time in U.S. history, more union members worked for government than for the private sector. This trend has continued to accelerate and has vast implications for public policy, said James Sherk, a senior policy analyst in labor economics with the Heritage Foundation, a Washington, D.C. based conservative think tank.
 
"While the traditional face of the union movement is workers on the assembly line, this stereotype no longer matches reality. Almost two-and-a-half times as many union members now work in the post office as in the domestic auto industry,” said Sherk.
 
States are moving to curb union power, because they do not have a choice, said Matt Patterson, who edits “Labor Watch” for Capital Research Center, a conservative nonprofit in Washington, D.C.
 
“Faced with unsustainable budget deficits driven by decades of cushy public-union contracts, many governors have concluded that in order to balance their books effectively, the power of public-sector unions must be curtailed or reformed,” Patterson said.
 
In 1973, almost a quarter of private-sector workers nationwide belonged to a union, but that membership is now below 7 percent, according to the U.S. Department of Labor.
 
The drop has been particularly acute in Indiana where union membership has fallen by 42 percent between 1990 and 2010, according to figures from the Indiana Department of Labor.
 
Early in his first term, Daniels addressed taxpayer concerns over public-sector union costs by issuing an executive order that eliminated collective bargaining for state employees. On the private-sector side, he had initially opposed right to work. But over time said he came to see it as an advantage to Indiana.
 
“The seven years of chasing jobs for this state and losing opportunities, especially in the bad economy, I came to the conclusion we couldn’t afford to drag this handicap around anymore," Daniels has told members of the Indiana media.
 
Indiana Democratic House Minority Leader Patrick Bauer said the right-to-work law would lead to lower wages and diminished employee benefits.
 
Bauer and other Democrats cited a study from the Economic Policy Institute that concludes there is no tangible correlation between right-to-work policies and migration from one state to another.
 
The Economic Policy Institute is a think tank that supports organized labor and broadens discussions about economic policy.
 
“National data show that most people move from one state to another to find more affordable housing, to meet certain family needs, to retire, to move to or from college, to access better weather, or for other reasons unrelated to work,” the study said.
 
The National Institute for Labor Relations Research also has compiled government data that shows from 1999 to 2009 right-to-work states had a 28.3 percent growth in real personal income versus 14.7 percent growth versus non-right-to-work states.
 
The nonpartisan institute is dedicate to "exposing the inequities of compulsory unionization."
 
Union officials who are balking at the Indiana right-to-work measure are concerned that it might put additional downward pressure on membership rolls, Vernuccio, the CEI labor counsel, said.
 
State Rep. Doug Gutwein, who chairs the Employment Labor and Pensions Committee in the Indiana House, cautions that right to work should not be viewed as a panacea for the economy. But, he does see it as a way to attract businesses.
 
“This legislation addresses our 9 percent unemployment rate and puts Indiana in a position to be the most open market for businesses among the neighboring states," said the Republican from Francisville.

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