Indiana Right-to-Work Bill Heads to State Senate for Approval

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Researched by Industrial Info Resources (Sugar Land, Texas)--The Great Lakes region of the United States is undoubtedly the heartland of the unionized worker. The automotive and heavy manufacturing sectors have long dominated manufacturing in the region, and a large part of that dominance has surrounded the unionization of the manufacturing plants. Unions, especially the United Autoworkers union (UAW) (Detroit, Michigan), have long held sway in this region with millions of members who control what is produced at most factories. This may all change in the next few days, however. The Indiana state legislature is very close to approving a bill that would make the state of Indiana a right-to-work state, which would be a major blow to the union movement.

For decades, manufacturers have been moving south, in part, to escape the ironclad dominance that the UAW has on the states in the Great Lakes region. Automakers and heavy manufacturers have complained for years that the union's demands and dominance have made doing business more and more difficult in the region. During the recession, many companies took advantage of the down economy and closed facilities in the northern union-controlled states and relocated production to southern states that are free of union influence.

Indiana may become the first state in the region to make a resounding change in how labor is viewed. Indiana's Republican-dominated state legislature has already passed the bill, and it now has been approved for a vote by the full Senate, after the Senate's labor committee overwhelmingly approved the measure. A vote is expected within days, and Governor Mitch Daniels, a Republican, has already stated that he will sign it into law immediately.

Proponents of the bill believe that changing the state to a right-to-work platform will make the state more attractive to businesses, while opponents feel it is a direct attack on unions. Given the recent tax increases in Illinois and the fact that virtually every state surrounding Indiana is a union state, businesses may decide to relocate to the Hoosier State as a result of this bill, but only time will tell if these efforts will actually pay off.

In the meantime, unions have organized massive protests against the bill, and as it is an election year, will certainly be pulling out all the stops to remove as many Republicans from the state House and Senate as they possibly can in order to possibly get this bill removed. Wisconsin and Ohio both recently passed right-to-work legislation, but it was aimed at state workers and mainly eliminated their ability to collectively bargain. In Wisconsin, Governor Scott Walker is facing severe blowback in the form of a recall election as a result of his anti-union policies, and similar action may take place in Indiana once this bill passes and is signed by the governor.

What makes this bill unique is that it directly attacks the ability of the major manufacturing unions, rather than just the state worker unions. If the state can keep the bill on the books and all of the Republican lawmakers remain in office once the blowback is finished, it would make Indiana the only manufacturing non-union state in the region. The fight for and against this bill is certainly not over, and will not be over for many months. Due to the backlash that is expected, it is highly doubtful that too many companies will take advantage of the bill immediately. They will probably take a wait-and-see attitude to see if the bill holds up to the backlash in the coming elections. Regardless, this bill's passage will make times very interesting in Indiana, and it will be worthwhile to see how this all shakes out through the elections later this year.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, and eight offices outside of North America, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.