A recent study from the National Institute for Labor Relations (NILR) on job growth over the past decade showed a marked difference between Right to Work (RTW) States and those that are not. RTW states allow each worker to decide if and how they want to be represented with management, whereas Non-RTW states force workers into specific unions.
Here’s what the NILR found in the data: RTW states grew their jobs by 17.7% from 1997 to 2007 compared to 8.6% for Non-RTW; by 9.7% from 2002 to 2007 compared to 3.6%; and by 1.7% from 2006 to 2007 compared to 0.7%.
In the Midwest, RTW states grew their jobs by FIVE TIMES the rate of non-RTW states during the past five years!
Another amazing difference between the two groups of states was in the growth of patents granted annually, which increased by 33% in the RTW states from 1995 to 2005 vs. only 11% in non-RTW states during the same period.
The freedoms enjoyed in RTW states is drawing much of our site selection business attention. We see that continuing and the gap between RTW states and non-RTW states continuing to grow in the future.
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2 comments:
Jack:
Most employers will choose RTW states because of lower wages; they can hire/fire at will, etc. With no protection by unions, the employers are ready, willing and able to really put the screws to the employees. It is no wonder that the non-RTW states are losing to the RTW (Right to Starve) states.
Unions no longer provide the protection the use to -- again no wonder. Employers can pull the machines out, ship them to a lower wage country, setup shop and produce almost as good stuff as in the States, at about one-quarter of the labor costs, which more than off-sets the transportation costs.
The "enemy" is not the unions nor the working class. The enemy are the employers who don't give a damn about their employees. These are the ones moving to the RTW states and to foreign lands.
The antidote to low wages is to not have wages at all. -- not have employers. --- not have employees. The solution is simple. Read "Sin Patron" by lavaca.org and it will become very clear that what this country needs is a string of worker cooperatives in charge of themselves. You are welcome to read and lift any of my material found on www.masallp.wetpaint.com.
Jim Miller
jimmiller5417@yahoo.com
Jim: I appreciate your opinion but think that any obstacles that impede freedom are non-starters in today’s rapidly changing environment. Taking away the freedom of someone to join or not join a union is not going to make it today.
I’ve recently blogged a number of times about Columbus, MS. This town of 25,944 has been able to create over 3,500 jobs in a number of industries in the past five years, all of which pay over $50,000/year. The companies weren’t going there because they could hire people at minimum wages; rather they were there because of the freedoms associated with Right to Work (RTW).
The data is irrefutable. RTW works! It creates more jobs, improves productivity and raises living standards.
I’m not sure what you mean by worker cooperatives. A possible variation of this is ESOPs (Employee Stock Ownership Plans) which give ownership in the company to those working there. I’ve seen some great examples of them at work and they can be wonderful.
Thanks for sharing your point of view.
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