Friday, February 3, 2012

A very bad week for Big Labor

By Rick Manning

On Feb. 1, Indiana became the twenty third state in the nation to pass a right to work law, and the first in the formerly heavily unionized rust belt to do so.

After signing the legislation, Indiana Governor Mitch Daniels released a statement saying, “The only change will be a positive one.”

“Indiana will improve still further its recently earned reputation as one of America’s best places to do business, and we will see more jobs and opportunity for our young people and for all those looking for a better life.”
The state of Indiana’s decision to allow workers to choose whether to join a labor union is likely to put competitive pressure on neighboring states like Michigan and Ohio to follow suit.

Bill Wilson, President of Americans for Limited Government, called Indiana’s achievement, “a milestone that in ten years we will look back upon as the dam breaking in a tidal wave against forced unionization.”
The other bad news for Big Labor is the Commonwealth of Virginia’s state legislature’s passage of legislation to end Project Labor Agreements (PLAs) on Jan. 31.

PLAs require that a government only award contracts to unionized firms. It is estimated that PLAs add between 17-20 percent to the costs of construction projects due to higher labor costs.
If, as expected, the legislation is signed by Virginia Governor Bob McDonald, it will effectively open up competition for government contracts saving Virginia taxpayers millions of dollars.
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