Friday, February 18, 2011

Roundup of Right to Work facts

Here are some talking points about Right to Work:

» Twenty-two states and Guam are currently governed by Right to Work statutes.

» If Indiana had adopted Right to Work in 1977, per-capita income would have been $2,925 higher — or $11,700 higher for a family of four — by 2008. (1)

» Projecting the same growth rate in the next 10 years after adjusting for inflation, passage of a Right to Work law in 2011 would raise per capita income by $968, or $3,872 for a family of four, by 2021. (1)

» The primary goal of any Right to Work law is to safeguard employee rights by ensuring that no worker is forced to join or pay tribute to a union against his or her will. But it's nice to know that Right to Work states also enjoy faster growth and higher real purchasing power than their forced unionism counterparts.

Here's an excerpt from the National Institute for Labor Relations Research's latest fact sheet on the issue:
Percentage Growth in Real Personal Income (1999-2009)
  • Right to Work States: 28.3 percent
  • Forced-Unionism States: 14.7 percent
  • National Average: 19.5 percent

Cost of Living-Adjusted Per Capita Disposable Personal Income (2009)
  • Right to Work States: $35,543
  • Forced-Unionism States: $33,389
  • National Average: $34,256 (2)
» As of 2008, according to economists Barry Hirsch and David Macpherson, 8.4 percent of private-sector employees nationwide were under "exclusive" union representation. But in 15 states — Alaska, California, Hawaii, Illinois, Indiana, Michigan, Missouri, New Jersey, Nevada, New York, Ohio, Pennsylvania, Washington, West Virginia and Wisconsin — 10.0 percent or more of private-sector workers were unionized.

» In 2008, cost of living-adjusted average weekly earnings in the states with 10.0 percent or more of private-sector employees subject to union monopoly bargaining were $770. That’s $48 less than the average in the states with private-sector unionization of 5.0 percent or less. (These low-union density states are: Arkansas, Florida, Georgia, Louisiana, New Hampshire, North Carolina, North Dakota, Oklahoma, South Carolina, South Dakota, Tennessee, Texas, Utah and Virginia.)

That comes to a roughly $2500-a-year disadvantage for full-time workers in states with high monopoly-bargaining density.

» Aggregate cost of living-adjusted weekly earnings for states with private-sector union density of 5.1 percent to 9.9 percent were $783, or, for full-time workers, nearly $700 a year more than in the highest-union-density states, but more than $1,800 a year less than in the lowest-union-density states. (3)

(1) Dr. Richard Vedder, Ohio University, Feb. 1, 2011
(2) Will Collins, National Institute for Labor Relations Research, Nov. 15, 2010
(3) NILRR, Aug. 28, 2009

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