Indiana has just become the 23rd state to pass a Right-to-Work law which begs the question; would right-to-work be good for Minnesota? Right-to-work states are much more attractive for businesses investment.  This is because unionized firms earn lower profits, invest less, and create fewer jobs than comparable nonunion firms. This is obvious when you consider that unions demand higher and higher wages, more benefits, implement restrictive work rules, and disrupt business with strikes. This increases the cost of doing business, making companies less competitive and leaving them with less money to invest. Site selection consultants report that about half of their clients won’t even consider expanding or re-locating their business in non-right-to-work states. Indiana experienced this first hand when they tried to woo Volkswagen into building a new plant in their state, but despite their best efforts VW choose to build their plant in Tennessee, a right-to-work state. In fact foreign car manufactures have consistently chosen to locate their US plants in right-to-work states like Tennessee, Alabama, and Mississippi. As a result, right-to-work states tend to have lower unemployment rates. A study by the Journal of Political Economy found that the share of manufacturing jobs in counties in right-to-work states is one-third higher than in adjacent counties in non-right-to-work states. We see this on our own boarders with Iowa, North Dakota, and South Dakota, all of whom have right-to-work. A report published by the non-partisan Center for the American Experiment found that over the last 40 years the growth rate of jobs in right-to-work states was two times that of non-right-to-work states. Census data for the last decade shows that 4.9 million native born Americans moved from non-right-to-work states to right-to-work states. In essence, Americans are voting with their feet. Personal income growth has also been higher in right-to-work states. From 1977 to 2008 personal income, in inflation adjusted dollars, grew by 166% in right-to-work states while only growing 94% in non-right-to-work states.  Analysis of this data suggests that if Minnesota had implemented right-to-work in 1977, the average per capita income in Minnesota would have been $2,360 higher in 2008, than it actually was. The non-partisan Public Opinion Strategies conducted a survey in 2011 which found that 70% of likely voters in Minnesota support right-to-work including 54% of union members.

Minnesotans deserve to have a vote on this issue. Implementing right-to-work would be a no cost way to improve Minnesota’s business climate which would bring more investment into the state, more jobs, and perhaps higher incomes. The Minnesota legislature has the opportunity to put right-to work on the ballot this November as a constitutional amendment called the Employee Freedom Amendment. We encourage you to contact your state representatives and urge them to put it on the ballot this November and let Minnesotans have a say in this important matter.