How the Teachers’ Union Robbed Chicago, Again

Writing at National Review, Joshua Culling looks at the details of the Chicago teachers deal: During the Democratic National Convention I wrote about a clear contrast between the policies of Illinois natives Barack Obama and Pat Quinn, and their Wisconsin counterparts, Paul Ryan and Scott Walker. We now have another anti-reformer to add to the Illinois column: Chicago mayor Rahm Emanuel. The seven-school-day Chicago Teachers Union strike was extensively covered across the country, as teachers walked out of the classroom after rejecting a deal with the city that would have paid them 16 percent more over four years, coupled with a slightly greater weighting of student performance in teacher evaluations. So far as I could tell, the union’s choice was overwhelmingly portrayed in a negative light, with even the New York Times editorial page calling the strike “unnecessary,” positing that union president Karen Lewis “seem[ed] to be basking in the power of having shut down the school system.” It was an opportunity for Emanuel to take a politically popular stand against union largesse while winning serious reforms for his city’s beleaguered budget. It is sad but true that when Democratic leaders push back against unions, they are applauded for moderation, or at least left alone by observers in the media. In 2011, Massachusetts governor Deval Patrick and an overwhelmingly Democratic legislature curbed collective bargaining to little fanfare. At the same time, Wisconsin governor Scott Walker pursued a similar path in Madison, but faced thousands of union protesters at his doorstep and the wrath of the New York Times and MSNBC.

Right To Work All Top 10  vs. Compulsory Unionism All Bottom 10

Right To Work All Top 10 vs. Compulsory Unionism All Bottom 10

In Chief Executive Magazine's Best and Worst States for Business, all the top ten were from Right To Wok States.  Unsurprisingly, Compulsory Unionism States took all bottom ten positions. States ranking from 1-10 are: Texas, Florida, North Carolina, Tennessee, Indiana, Virginia, South Carolina, Georgia, Utah, Arizona. States ranked from the worst, 50-41: California, New York, Illinois, Massachusetts, Michigan, New Jersey, Connecticut, Pennsylvania, Oregon, Hawaii. From the Chief Executive: 2012 Best & Worst States for business. Source: Chief Executive Magazine

Right To Work = Jobs

Right To Work = Jobs

BMW plans to expand in Right To Work state of South Carolina As politicians are seeking jobs through stimulus programs, spending sprees, welfare, food stamp programs and bureaucratic mandates, many ignore the upshot enactment of a Right to Work law can have on job creation for fear of angering their big labor benefactors. But the evidence continues to compound that giving workers a choice in joining a union is not only a civil rights issue but an economic growth issue. The Washington Examiner gets it: "Danaher’s closing,” said Rep. Richard Neal, D-Mass., lamenting the loss of a plant that had employed 330 people in his state. “Now those jobs are going to Arkansas and to Texas.” It was April 2005. Neal was taking the opportunity during a House committee hearing on competition with China to complain instead about how Massachusetts was losing jobs to states with less-hostile business climates. The Ways and Means Committee chairman in 2005, California Republican Bill Thomas, mildly rebuked Neal’s deviation from the topic, saying Massachusetts had shot itself in the foot with high taxes and compulsory union membership. “At some point perhaps the good citizens of Massachusetts will pick up the drift,” Thomas said.

"Former Michigan Governor Jennifer Granholm Makes the Case for Right to Work Laws"

"Former Michigan Governor Jennifer Granholm Makes the Case for Right to Work Laws"

Matt Mayer of the Buckeye Institute debunks the long-term economic growth without Right To Work freedom is sustainable. Mayer uses a Columbus Dispatch reporter Joe Hatlett column that featured Former Michigan Gov. Jennifer Granholm to expose the fact that corporate welfare and reduced regulations ignore the “proverbial elephant in the room weighing down” compulsory union states like Indiana, Ohio, Illinois,, and Michigan. From Matt Mayer’s post: “With Michigan bleeding jobs and tax revenues, Granholm said she followed the corporate playbook in her attempt to close a huge state budget deficit and make Michigan more competitive. ‘In listening to the business community, I cut takes [sic] 99 times, and I ended shrinking government more than any state in the nation. In my two terms, I cut more by far than any state in the nation. And yet, we still have the highest unemployment rate. There was no correlation.’ Granholm conceded that streamlining business regulations and lowering taxes — Kasich’s economic recovery mantra — are helpful, but they aren’t a panacea…[l]abor costs, help with start-up costs and proximity to markets are other factors.” Hallett and Governor Granholm fail to mention why streamlining regulations and lowering taxes aren’t helping the northern states (located within 50 percent of the U.S. population and with low start-up costs) compete against the southern and western states. Instead, Hallett ignores the obvious answer and pleads for an end to corporate pork (with which we enthusiastically agree). The reason Michigan and Ohio can’t compete is that the southern and western states already have fewer regulations and lower taxes, so “catching up” with those states still leaves the proverbial elephant in the room weighing down the northern states. Plus, those states are also pushing for lower taxes and fewer regulations, so the northern states are perpetually behind them. The elephant, which Governor Granholm does hint at, is labor costs, or, more specifically, unionized labor costs (see: General Motors and the United Auto Workers). As I noted in Six Principles for Fixing Ohio, “Of course, tax and regulatory burdens also impact a state’s economy. Although many of the forced unionization states have heavy tax burdens and many of the worker freedom states have light tax burdens, some heavily taxed worker freedom states (Idaho, Nevada, and Utah) had the strongest sustained job growth from 1990 to today. Similarly, a few moderately taxed forced unionization states still had weak job growth (Indiana, Illinois, and Missouri). The combination of both a heavy tax burden and forced unionization is deadly when it comes to job growth, as 11 of the 15 worst performing states are ranked in the top 20 for high tax burdens.” If Ohio and the other states from Missouri to Maine want to truly compete with Texas, Georgia, and South Carolina, then those states need to enact laws that protect the rights of workers not to join a labor union to get a job.