New Mexico and Right to Work A Right to Work Quiz What does Right to Work Do ? Does Right to Work outlaw unions? What does Right to Work Do ? Does Right to Work outlaw bargaining? What does Right to Work Do ? Does Right to Work stop anyone from joining a labor union? What does Right to Work Do ? Does Right to Work stop anyone from paying dues to a labor union? What does Right to Work Do ? Does Right to Work stop unions from participating in politics? What does Right to Work Do ? Does Right to Work protect individual rights? What does Right to Work Do ? Does Right to Work help union members hold union officials accountable? What does Right to Work Do ? Does Right to Work help create new jobs and spur economic development? First Principle Individual Freedom Americans must have the right, but not be compelled to join or pay dues to a labor union as a condition of getting or keeping a job. America’s 24 Right to Work States Samuel Gompers “The workers of America adhere to voluntary institutions in preference to compulsory systems which are held to be not only impractical but a menace to their rights, welfare and their liberty.” “ I want to urge devotion to the fundamentals of human liberty the principles of voluntarism. No lasting gain has ever come from compulsion.” Second Principle Right to Work is Good for Families and the Economy Lack of Right to Work Hurts Families Cost of Living Adjusted Per Capita Disposable Personal Income 2013: Right To Work States: $38,915 Forced Unionism States: $36,959 New Mexico: $35,631 Source: US Dept. of Commerce, Missouri Economic Research and Information Center (MERIC) Lack of Right to Work Hurts Families Cost of Living Adjusted Per Capita Disposable Income 2013: All Right To Work States: North Dakota South Dakota Texas Kansas Nebraska Idaho Wyoming Oklahoma Arizona Utah New Mexico: Source: US Bureau of Economic Analysis. State Personal Income, BEA, MERIC $ 38,915 $ 45,784 41,731 42,733 42,876 45,768 36,385 48,966 41,652 33,399 35,728 $35,631 Lack of Right to Work Hurts Families Cost of Living Adjusted Compensation Per Private Sector Employee 2013: Western Right To Work States: $40,578 Western Forced Unionism States: $39,516 New Mexico: $39,710 Source: US Commerce Dept., US Bureau of Economic Analysis. MERIC, BEA Lack of Right to Work Hurts Income Growth Growth in Real Private-Sector Employee Compensation 2003-2013: Right To Work States: Forced Unionism States: Source: Bureau of Labor Statistics; Bureau of Economic Analysis +15.1% 8.2% Right to Work Means Jobs New Mexico needs Jobs Lack of Right to Work Hurts Job Growth Percentage Growth in Non-Farm Private-Sector Payroll Employment 2003-2013: Right To Work States: +9.23 % Forced Unionism States: +4.0 % Source: Dept. of Labor Best Business Climate Business Facilities Magazine 1. 2. 3. Top 10 States 4. 5. 2014: 6. 7. 8. 9. 10. Louisiana Utah Texas Tennessee Indiana Florida Georgia South Carolina Nebraska Alabama RTW RTW RTW RTW RTW RTW RTW RTW RTW RTW “Top States for Doing Business” Area Development Site Selection 1. 2. Top 10 States for Doing Business 3. 2014: 5. 4. 6. 7. 8. 9. 10. Georgia Texas South Carolina Alabama Tennessee Louisiana Indiana North Carolina Ohio Mississippi RTW RTW RTW RTW RTW RTW RTW RTW RTW Lack of Right to Work Hurts Business Recruitment Site Selection’s Top 10 States Business Climate - 2014: 1. 2. 3. 4. 5. 20 of top 25 are Right to Work states 6. 7. 8. 9. 10. Georgia Louisiana North Carolina Texas Ohio South Carolina Tennessee Kentucky Alabama Virginia RTW RTW RTW RTW RTW RTW RTW RTW Lack of Right to Work Hurts Economic Outlook Top 15 States: Economic Outlook Ranking 2014 1. 2. 3. 4. Rich State Poor State study ALEC 5. 6. 7. 8. 9. 10. New Mexico: 37 11. 12. 13. 14. 15. Utah South Dakota Indiana North Dakota Idaho North Carolina Arizona Nevada Georgia Wyoming Virginia Michigan Florida Mississippi Kansas RTW RTW RTW RTW RTW RTW RTW RTW RTW RTW RTW RTW RTW RTW RTW Lack of Right to Work Hurts Economic Outlook 1. CNBC 2. 3. America’s Top States for Business 4. 2014: 6. 5. 7. 8. New Mexico: 37 9. 10. Georgia Texas Utah Nebraska North Carolina Minnesota Washington Virginia Colorado North Dakota South Dakota RTW RTW RTW RTW RTW RTW RTW RTW Lack of Right to Work Hurts Economic Outlook 1. CNBC 2. 3. America’s Top States for Business Friendliness 4. 2014: 6. 5. 7. 8. New Mexico: 47 9. 10. 10. Delaware South Dakota Nebraska Utah Virginia Idaho North Dakota Wyoming Iowa Kansas Indiana RTW RTW RTW RTW RTW RTW RTW RTW RTW RTW Lack of Right to Work Hurts Outlook Chief Executive Magazine Best States for Business 2014: New Mexico: 30 1. Texas RTW 2. Florida RTW 3. Tennessee RTW 4. North Carolina RTW 5. South Carolina RTW 6. Indiana RTW 7. Arizona RTW 8. Nevada RTW 9. Louisiana RTW 10. Georgia RTW 11. Virginia RTW 12. North Dakota RTW 13. Utah RTW 14. Wisconsin 15. South Dakota RTW Best States for Business 1. Forbes Magazine 2. 3. Top 10 States 2014: 4. 5. 6. 7. 8. 9. New Mexico: 47 10. Utah North Dakota North Carolina Virginia Colorado Texas Nebraska Washington Minnesota Oklahoma RTW RTW RTW RTW RTW RTW RTW Right to Work Helps States Prosper Pollina Corporate Top 10 1. Business Rankings 2. 2014: 3. 4. 5. The Pollina Corporate Top 10 Pro-Business States study is based on 32 factors that our clients indicate are most important and more than 30 years of experience as site selectors. 6. 7. 8. 9. 10. Utah Wyoming Nebraska Virginia Kansas North Dakota Indiana Missouri South Carolina South Dakota RTW RTW RTW RTW RTW RTW RTW RTW RTW Right to Work and Small Business Top 5: Right to Work states Bottom 5: Forced Unionism states Where the Jobs Are: Testimony on Right to Work “…and the fact of the matter is that these clients express a very strong interest in being in Right to Work states as a means to go to a location… “Upon further review and discussion with our clients, approximately 75% of our manufacturing clients express an initial interest in being in a Right to Work state.” “After further discussion with our clients, somewhere around 50% want to retain Right to Work as a pass/fail criteria.” Mark Sweeney: 2/10/2011 Missouri State Senate "Right-to-work is vitally important," says Mark Vitner, vice president and senior economist for Wachovia. Right-to-work status enables the companies to have equal leverage [with] the unions." David Brandon, president of The Pathfinders, a Dallas-based consulting firm, says that right-to-work status has become increasingly important for the manufacturing employers for whom he conducts location research. "About 35-to-40 percent of manufacturing enterprises in the automotive industry insist on operating in a right-to-work state. Another 20-to-25 percent say it is a very important factor and will be used as a second- or third-tier factor in site selection. More than half of our companies either make it a threshold or a very important factor in making a decision on where to locate a factory and other operations," he says. Businesses are increasingly considering Right to Work as a key competitive criterion when considering sites for new growth and investment. Almost three-fifths (69.5%) of business executives specify Right to Work as a very important or important factor in site selection according to the Annual Corporate Survey published by Area Development Magazine. A vice president of Fantus told the Greater Twin Falls, Idaho Chamber of Commerce, "Approximately 50 percent of our clients … do not want to consider locations unless they are in right-to-work states. As a result, states that are not right-towork states, and the communities in them, are eliminated from consideration in the initial phase of the site selection process, no matter how strong other advantages for a facility might be." KPMG Business Site Consultant, Chicago: “For Iowa to be considered (for business development) based on your business climate and tax climate, ‘you better keep your Right to Work law’.” Insight Research Corporation, one of the country’s dominant competitors in corporate relocation research: reported that 90% of their clients looking to build new facilities and create new jobs will not even consider states that do not have Right to Work laws. International Attention "This issue is also closely followed overseas. Many of our offshore clients are aware of the implications of U.S. right-to-work laws, and the significance of these laws in the site selection decision process has not waned. Robert Price, director of Atlanta-based Herron Consulting, commenting on IN RTW law passage Site Selection Magazine, March 2012 Oklahoma America’s 22nd Right to Work State Oklahoma an Economic Leader 2003 - 2013 Private Sector Job Growth Right to Work States Oklahoma New Mexico Source: U.S. BEA 11.2% 16.2% 16.0% 9.7% “Since January 2011, we’ve created over 62,400 new net jobs, giving us the fourth highest growth rate in the United States. Unemployment in Oklahoma has been reduced by 30 percent, from 7 percent in 2010 to an enviable 5.1 percent today, one of the lowest unemployment rates in the nation. Our median household income rose in 2011 by $4,000 – placing Oklahoma at No. 1 in the country.” Governor Mary Fallin: State of the State Address, 2/04/2013 Indiana America’s 23rd Right to Work State “Better than any year on record” INDIANAPOLIS (Jan. 4, 2013) – The Indiana Economic Development Corporation (IEDC) announced today that in 2012 it secured job commitments from 256 companies from across the country and around the world that project to create more than 27,600 new jobs, an increase from 19,080 in 2011 and more than any other year on record. “From its falling corporate tax rate and recently enacted right-to-work legislation… these results are proof that companies find Indiana one of the most attractive places to create jobs,” Governor Mitch Daniels “…I may have underestimated the impact, we have had a flood of calls and inquiries, starting literally the day I signed the bill.” “Already had an Impact” I'm working right now with an international company that is now specifically considering Indiana, where it wasn't previously. Right-to-work has already had an impact." Bob Ady, president Ady International Co. State outpaces nation in job creation; unemployment falls December 20, 2013 IBJ Staff Job numbers increased faster in Indiana in November than in any other state, the government reported Friday morning. "Today’s employment news in Indiana stuns the senses," Ball State University economist Mike Hicks said in an e-mailed statement. "Nearly one out of every eight jobs created nationally were created here in Indiana. The composition of jobs were also strong, with manufacturing, logistics and construction comprising the top three job gaining categories." [IEDC] Engineering Consulting Firm Grows in Central Indiana November 19, 2014 WARSAW, Ind. (Nov. 14, 2014) – Alpha Manufacturing & Design, LLC, a precision contract manufacturer for the orthopedics industry, announced plans today to expand its operations here, creating up to 32 new jobs by 2018. [IEDC] North America’s Largest Wire & Cable Manufacturer Chooses Indiana for Growth November 12, 2014 EVANSVILLE, Ind. (Nov. 5, 2014) – Fisher Dynamics, a division of Fisher & Co., announced plans today to establish its first Indiana operation here, creating up to 169 new jobs by 2017. OSSIAN, Ind. (Oct. 13, 2014) – HALDRUP USA, an international field research equipment manufacturer, announced plans today to locate its first company-owned U.S. operations here, creating up to 65 new jobs by 2017. LA PORTE, Ind. (Oct. 6, 2014) – Plastic Package, a manufacturer of packaging containers and trays, announced plans today to locate its Midwest manufacturing operations here, creating up to 19 new jobs by 2016. NAPPANEE, Ind. (Sept. 26, 2014) – Ameritrans Bus, Inc., an assembler and distributor of small to mid-size transportation vehicles, announced plans today to locate its second Indiana facility here, creating up to 73 new jobs by 2016. Where People are Going for Jobs United States Department of 1. Commerce: Bureau of the Census 2. America’s Biggest Gainers of People in their Peak Earning Years (35-54) 4. 3. 5. 6. 7. January 2003 – December 2013 8. 9. Utah Nevada Texas Arizona North Carolina Georgia Florida Idaho South Carolina +5.4% Forced Unionism -4.1% RTW States New Mexico -2.6% RTW RTW RTW RTW RTW RTW RTW RTW RTW Dr. Barry Paulson Study Real Earnings Higher in Right to Work States (evidence from the AFL-CIO!) “The AFT’s (AFL-CIO) ‘Survey and Analysis of Salary Trends’ shows that employees in right-to-works states enjoy lower living expenses, and that, adjusting for differences in living costs, the real earning are higher in nonunion [Right to Work] states.” NILRR Study using data from Dr. Howard Nelson and Ms. Rachel Drown American Federation of Teachers (AFL-CIO) researchers 2002 Third Principle Americans oppose Forced Unionism Public Opposition to Forced Unionism Word Doctors October 2010 “Americans Approve of Unions but Support "Right to Work" Union approval at 53% while 71% favor right-towork laws” Gallup Polls August 28, 2014 New Mexico: America’s 25th Right to Work State Right to Work