Kentucky turns on “open for business” sign with passage of Right-to-Work law

By ERIN SHANNON  | 
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Jan 9, 2017

Following in the footsteps of 26 other states, Kentucky has become the 27th state to pass a right-to-work law that ends forced unionization and instead gives workers the choice of whether to pay a union for representation.  The new law also prohibits public employees from going on strike.

Kentucky was the last of the southern states without a right-to-work law, leaving the state at a competitive disadvantage when vying for the manufacturing jobs that continue to flood into southern neighbors such as South Carolina and Tennessee.  Right-to-Work status is routinely considered a major factor in a business’s decision about where to locate.  One professional site consultant says 50% of manufacturers automatically screen out any non-right-to-work state.

The business-friendly policies of the south, such as right-to-work laws, are encouraging companies to invest in those states, and their economies and their workers are reaping the benefits.

According to a recent study by the Brookings Institution, the South now has the highest number of workers in the country employed in “advanced industries,” which tend to be the highest paying in the factory economy. 

The Brookings study defines the advanced industries sector to include 50 industries ranging from manufacturing industries such as auto-making and aerospace, to energy industries such as oil and gas extraction.  The study says these industries are “a central component of any future revitalized U.S. economy” and “encompass the country’s best shot at supporting innovative, inclusive, and sustainable growth.”

Southern states like Kentucky clearly understand the importance of attracting such advanced industries, to both their economy and their citizens.

In addition to the right-to-work law, Kentucky lawmakers also passed a bill repealing prevailing wage laws that force non-union construction companies to pay workers union scale wages on publicly funded projects.  Prevailing wages significantly increase the cost of public projects funded by taxpayers.  It is expected Kentucky Governor Matt Bevin will sign that bill as well. 

One Kentucky lawmaker who voted in favor of enacting right-to-work and repealing prevailing wage said the bills are tantamount to turning on an "open for business" sign on in the state.

An in-depth study published by WPC examining the impact a right-to-work law would have in Washington state revealed that under right-to-work, the state after five years would have almost 120,000 more people working, with more than 13,100 in increased manufacturing employment.  The state’s wage and salary incomes would be $11.1 billion higher and average annual wage and salary would be more than $560 higher than otherwise.  After 10 years, Washington would have almost 235,000 more people working, wage and salary incomes would be $27.1 billion higher and the average annual wage and salary income per employee would be $1,280 higher.   The bottom line—if Washington passed a right-to-work law, more people would be working, and those working would earn more, than without a right-to-work law.

Perhaps it is time for Washington lawmakers to consider turning on the “open for business” sign in this state.

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