Another one takes the plunge: Indiana becomes the 23rd “right-to-work” state [USA]

Author: Economist, Published on: 4 February 2012

Until recently…[Indiana’s Republican governor] Mr Daniels had resisted calls to make Indiana what is known as a “right-to-work” (RTW) state. RTW legislation allows employees to decide whether to financially support a union. Without such laws unions can insist that all workers pay dues to help fund the cost of negotiating a contract with an employer, whether or not they wish to formally join the union. Now…Mr Daniels says he believes the state needs to sign up as well. The new legislation was passed by the state Senate on February 1…making Indiana the 23rd RTW state in America…Proponents argue that it is wrong to force anyone to contribute money to a union. Unions counter they face a “free rider” problem whereby non-affiliated workers receive the benefits of union negotiations without contributing financially. The governor, meanwhile, says the new laws will simply make the state more attractive to business...Few companies...are willing to go on the record to say exactly why they prefer to locate in RTW states though the reason is pretty obvious...they make for weaker unions. [refers to Remy Intl.]

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