Unfortunately, because the Republicans who control the committee placed our witnesses last on the agenda, many of our arguments went unreported in the media because reporters had already left by time those who opposed RTW took the microphone. 

However, for those that stayed and heard both arguments, the facts clearly remain on our side.

 ·    A RTW law would undermine unions and lower workers’ wages. A recent study by the Economic Policy Institute found that workers in RTW states receive wages that are 3.2% less than those in non-RTW states.  After adjusting for cost of living and 39 other factors that's about $1,500 less on an annual basis.  Furthermore, workers in RTW states receive lower levels of health insurance and pension benefits than workers in non-RTW states. Read full study here.

·    Having RTW DOES NOT help to attract more businesses. Because RTW lowers wages, it arguably may once have served as an inducement to some companies; however studies prove that companies looking for low-wage workers are much more likely to locate to China or other low-wage countries than in Indiana.  In fact, states that have attracted companies in the past on the basis of low wages now find these same companies leaving their states for even lower wages abroad. For further proof, examine Oklahoma which passed RTW in 2001 and saw more than 100 firms closed their doors due to low-wage competition abroad since. Read full study here.

·    RTW laws have historically impeded economic growth. Reports shows that RTW states had higher average rates of growth of income BEFORE they became RTW states, (4.2% before becoming a RTW state, 3.9% afterward).   Read full study here.

·    Lower worker wages today will NOT lead to higher wages in the future.  This argument assumes that increased business investment would raise not only income, but also productivity, which in turn would lead to higher wages.  This “trickle down” theory is unlikely because businesses seeking the cheapest labor force are unlikely to increase productivity.  And, even if it did, wages would be unlikely to respond in kind, since wages have lagged behind productivity growth for the past 30 years. Read full study here.

Unbelieveably, the corporate backed groups like the Indiana Chamber of Commerce, the Indiana Manufacturing Association, the Indiana Builders and Contractors Association and the National Right to Work Committee along with their professional lobbyists and  paid experts couldn’t point to single company that refused to locate to Indiana because we don’t have a RTW law. They couldn’t guarantee a single new job if the law was passed.  And, they couldn’t name a single benefit this law would bring to the state of Indiana or Hoosier businesses -- beside lowering wages.

Unbelievably, the corporate backed groups like the Indiana Chamber of Commerce, the Indiana Manufacturing Association, the ABC and the National Right to Work Committee along with their professional lobbyists and  paid experts couldn’t point to single company that refused to locate to Indiana because we don’t have a RTW law. They couldn’t guarantee a single new job if the law was passed.  And, they couldn’t name a single benefit this law would bring to the state of Indiana or Hoosier businesses -- beside lowering wages.

The lack of facts or reason won’t stop them, however. With a Republicans dominating the committee and the Daniels Administration signaling their support of advancing this bill, we all must prepare for another fight come January.

The Interim Committee on Employment will meet several more times this summer and early fall to consider an all out ban on project labor agreements and to take public testimony.  We will keep you informed as meeting dates become public.