In an Op Ed for the Herald titled “Let’s get honest about Right to Work bill”, Democratic House Leader Terie Norelli attacked the honesty of those who support the Right to Work bill. Not only does this stretch the bounds of civil discourse, but also her arguments themselves leave something to be desired in objectivity and accuracy.
She dismisses the argument that RTW will bring jobs to NH by pointing to failure of the Speaker to name specific examples of jobs that would come to NH. However, US Department of Labor data show that growth in the civilian labor force was 14.4% over the last decade in RTW states, compared to 5.3% in non-RTW states, and 8.5% in NH. She then claims that the real result of RTW is the “reduction in wages and benefits for working people.” Again, Department of Labor data show that growth in real private-sector employee compensation over the past decade was 11.3% in RTW states compared with .7% in non-RTW states, and 4.1% in NH. While it is true that median income in non-RTW states is higher, so is their cost of living, so that it is unclear how RTW affects standards of living.
Rep. Norelli goes on to ‘debunk’ the claim that states with RTW laws have stronger job markets and lower unemployment than states without. She ‘proves’ this by stating that NH has the highest median income in the country and the lowest unemployment rate of any state east of the Mississippi River. According to the Census Bureau, NH has the 7th highest median household income among the states, but this has nothing to do with the argument on RTW. Regarding unemployment, it turns out that the three states with lower unemployment rates than NH are all RTW states, and 10 of the lowest 14 unemployment rates are in RTW states. It has been asserted by several business relocation firms that many of their manufacturing customers refuse to relocate to a state that does not have RTW. Can we imagine the good to the NH economy that would result from the moving of a major manufacturing facility such a Boeing to our state? Perhaps that would happen if we were the only RTW state in the Northeast.
It cannot be proved that RTW will significantly improve the jobs situation in NH, but nor can it be proved that it would not. Many other factors influence creation of jobs. These include tax rates, cost of energy, the quality and education of the workforce, and the overall business climate. The CNBC ‘Survey of Top States for Business in 2011’ rates the states in terms of ‘workforce’. Of the top half, only 3 are not RTW. NH is ranked 40th. Taking in all the factors they considered, including cost of business, quality of life, infrastructure, education, cost of living, etc., NH ranks 17th overall, with 10 RTW states rated higher.
Rep. Norelli then goes on to attack the budget passed in June and points out that NH unemployment is now higher than it was in June. The rate has now fallen to 5.2%, but was 5.6% in January, when the Republicans took over the Legislature. Of course, none of this has anything to do with RTW.
In my opinion, these arguments do not go to the heart of the issue. RTW is about individual freedom. A major purpose of RTW is to benefit union employees, giving them greater freedom of choice, and thus more influence over labor bosses, who will need to treat union members as ‘customers’, and not take them for granted. Forcing all employees to pay into unions is simply wrong. The argument that the Taft Hartley bill does not require union membership misses the fact that union contracts often do require payment of “agency fees” for collective bargaining. Union claims that this is only ‘fair’ for the services rendered were shown to be false when union lobbyists pushed strongly for the removal of the provision in the RTW bill that would have eliminated the requirement for applying collective bargaining results to nonunion employees.
Dues are used for many purposes that are not supported by all employees, such as for high pay and luxurious conferences for the labor bosses (like the one recently held in Puerto Rico). Much more serious is that dues support the flow of big dollars into political campaigns. According to the Center for Responsive Politics, union contributions from 1990-2008 totaled over $500 million, with 95% of all contributions flowing to Democrats. With this huge influx of money, no wonder that not one single Democrat voted for RTW in this year’s failed 240-139 House vote to override Governor Lynch’s veto. (A two-thirds majority is needed to override). What is surprising is that 41 Republicans joined them.