Union Bosses Press for Court-Imposed Bailout

Union bosses in Indiana are pressing for a judicially imposed bailout, arguing that the state's new Right to Work Law will reduce revenues to the union since membership is no longer compulsory.  The LibertyLawSite looks at the lawsuit and the impact the law has had on job creation in the state:   Amidst a series of setbacks at both the ballot box and the court house, the fate of the compulsory union movement may depend in large measure on the outcome of two lawsuits currently pending in Indiana.  In early 2012, Governor Mitch Daniels signed into law a bill that made Indiana the nation’s twenty-third right-to-work state.  Unions have filed two challenges to that law, one each in state and federal court.  The outcome of those lawsuits will help to determine whether Indiana remains a right-to-work state and whether other states follow Indiana’s lead. In its first few months of operation, the right-to-work law has, by almost any measure, helped to attract new businesses to Indiana.  Indiana has only 2.2 percent of the nation’s population.  In April, the first full month after the law took effect, more than one in eight jobs created around the country were created in Indiana – more than in states several times the size of Indiana.  According to the state’s economic development arm, almost fifty out-of-state companies cited the right-to-work law as one reason that they were considering opening a location in Indiana.

Greer: Economic Boom in America’s Newest Right to Work State

Greer: Economic Boom in America’s Newest Right to Work State

From Stan Greer at the National Institute for Labor Relations Research: Indiana Performing Well in Job Growth Ball State University economist Michael Hicks: "Indiana just zoomed past the rest of the country in terms of job growth" during the first full month after its Right to Work law took effect. In the U.S.as a whole, the anemic private-sector employment growth of early 2012 got even more feeble last month, as the nation’s business payrolls barely increased by an estimated 0.1%, seasonally-adjusted. (See link) However, job seekers are faring far better in some regions of the country than in others. A notable example is America’s 23rd Right to Work state, Indiana. As the U.S. Bureau of Labor Statistics first reported (see link) and as WIBC news radio in Indianapolis discussed early today, one out of every eight private-sector jobs created in the nation in April was “created in Indiana.” This is remarkable, because the Hoosier State is home to just 2.2% of America’s private-sector employees. Michael Hicks, an economist at Ball State University in Muncie and a frequently quoted analyst of the Indiana economy, is impressed: “We’ve seen good job growth over the last several months in Indiana but it looks like the nation as a whole was slowing down a bit. But last month Indiana just zoomed past the rest of the country in terms of job growth.” Previously, Dr. Hicks had been publicly skeptical about whether Indiana’s new Right to Work statute, which was adopted in early February and took effect in mid-March, would have much impact on job creation. He still insists its “too early to tell,” but now admits “it’s pretty difficult to say” the state’s sudden burst of private-sector payroll job growth in April, even as private-sector job creation nationwide practically ground to a halt, is not related to Indiana’s new ban on compulsory union dues and fees.