Time to Give Indiana an Economic Edge

Time to Give Indiana an Economic Edge

As Right to Work legislation finds its way back to the top of the legislative agenda in the state capital, Andrea Neal looks at the benefits of enacting a Right to Work bill in the Hoosier State: It doesn't take an economist to spot the common thread in these recent economic development headlines: Chattanooga, Tenn., July 29: "Volkswagen hires 2,000th employee." Shreveport, La., July 28: "NJ-based bag manufacturer to build Louisiana plant." Decatur, Ala., July 21: "Polyplex to build $185 million plant." West Point, Ga., July 7: "Kia builds vehicle No. 300,000." All four stories have Southern datelines. All come from states with right-to-work laws, which prohibit labor contracts that [force] employees to join a union or pay a union representation fee. This is the issue that prompted the five-week House Democratic walkout during the 2011 Indiana General Assembly. The Democrats -- a minority in both House and Senate -- had no other leverage. So when a right-to-work bill came up unexpectedly in a session that was supposed to be about the budget, redistricting and education, they bolted. Republicans capitulated and took the legislation off the table. In 2012, it will return with a vengeance, and this time Democrats can't avoid it. Right-to-work has been promised a full public airing. The Interim Study Committee on Employment Issues, chaired by Sen. Phil Boots, R-Crawfordsville, is taking a first crack this summer and hopes to recommend a bill by November. Gov. Mitch Daniels, who didn't support the bill last session, has hinted he might this time around.

The Inescapable SEIU-NLRB Connection

John Ranson, writing for TownHall.com, points out how the SEIU and their cronies have a heavy hand in the role that the NLRB's effort to punish companies for moving to Right to Work states: In just another example of the Obama administration making law by fiat, the National Labor Relations Board head Craig Becker is proposing new rules that would shotgun the formation of new union shops in as quick as ten days. After the defeat of card check at the legislative ballot box, the former SEIU goon [Becker] is acting creatively in order to implement portions of card check unilaterally. What would one expect from a guy appointed to his position despite his nomination being rejected by the Senate? Obama then made a recess appointment of Becker to the NLRB, the presidential equivalent of Enron accounting for political appointees. NLRB and Becker have been in the news lately because they’ve attacked Boeing for opening a plant in [Right to Work] South Carolina, a state that is less accommodating to union employment but more accommodating to workers and management with project deadlines to keep. But the attack on Boeing is nothing compared to the attack that Becker and organized labor are going to launch against the rest of us starting today.

Taxpayer Funded Big Labor Cash Cow Hit by WI Reform

What Reform Was About Wisconsin Republicans put their careers on the line to reform the state's collective bargaining process for government unions -- standing up to entrenched special interests and back room deals that have dominated the political landscape for decades. Byron York of the Washington Examiner takes a look at one of the corrupt bargains that seems to be coming to an end thanks to their efforts. It appears the union bosses were padding their bottom line by forcing school districts to buy health insurance through a company they owned -- all at inflated costs. Now free of those constraints, schools are saving money on wasteful contracts helping teachers and students in the process. Other states should take note. The Hartland-Lakeside School District, about 30 miles west of Milwaukee in tiny Hartland, Wis., had a problem in its collective bargaining contract with the local teachers union. The contract required the school district to purchase health insurance from a company called WEA Trust. The creation of Wisconsin's largest teachers union -- "WEA" stands for Wisconsin Education Association -- WEA Trust made money when union officials used collective bargaining agreements to steer profitable business its way. The problem for Hartland-Lakeside was that WEA Trust was charging significantly higher rates than the school district could find on the open market. School officials knew that because they got a better deal from United HealthCare for coverage of nonunion employees. On more than one occasion, Superintendent Glenn Schilling asked WEA Trust why the rates were so high. "I could never get a definitive answer on that," says Schilling. Changing to a different insurance company would save Hartland-Lakeside hundreds of thousands of dollars that could be spent on key educational priorities -- especially important since the cash-strapped state government was cutting back on education funding. But teachers union officials wouldn't allow it; the WEA Trust requirement was in the contract, and union leaders refused to let Hartland-Lakeside off the hook. "It's going to save us about $690,000 in 2011-2012," says Schilling. Insurance costs that had been about $2.5 million a year will now be around $1.8 million. What union leaders said would be a catastrophe will in fact be a boon to teachers and students.