A study released in early March shows “right-to-work” laws hurt economies and don’t create jobs. The study by the Economic Policy Institute concludes: (1) So-called right-to-work laws have not increased employment growth in the states that have adopted them; (2) The case of Oklahoma, which in 2001 became the latest state to pass one of these laws, particularly underlines their failure to spur job growth. Since the law passed, manufacturing employment and relocations into the state reversed their climb and began to fall, precisely the opposite of what advocates promised; and (3) These laws may actually harm a state’s economic prospects and ability to develop employment in high-tech manufacturing, the “knowledge” sector and service industries dependent on consumer spending in the local economy.
Seven Ways Pro-Worker Policies Help Everyone, Including Non-union Workers and CEO’s
A new report from the Illinois Economic Policy Institute and the University of Illinois Labor Education Program examines the differences between states that have "right to work" laws and states that don't, and states with and without prevailing wage laws. The report gives both general statistics and focuses specifically on the construction industry. Here are the top seven ways pro-working family policies are shown to benefit workers or CEOs:
In states without "right to work" for less laws, the average worker (not just union workers) earns 6% more.
An increase in union membership rate of 10% reduces income inequality between 4.7% and 14.5%.
In states without "right to work" laws, CEO incomes were 17.9% higher in construction occupations than in "right to work" states.
In states with prevailing wage laws, the median worker is paid 16.7% more than in states without prevailing wage laws.
Prevailing wage laws reduce income inequality between the highest earners and lowest earners by 45.1%.
States without "right to work" laws have lower income inequality by 2.5% to 8.2%.
In states without "right to work" laws, workers earned 26.7% more in total income (including benefits).