The Economic Policy Institute just released the facts over Indiana’s claim Right to Work has attracted business.
Michigan Gov. Rick Snyder has pointed to Indiana’s economic success since passing “right to work” as a reason for Michigan to adopt similar legislation.Here's Ed Schultz:
-It is too soon for the RTW law to have impacted corporate location decisions.
-Claims of RTW success story refuted by employer cited … the MBC Group as an employer that he said was creating jobs in Indiana because of RTW. MBC is not an out-of-state firm, but was founded in Indiana in 2009, and opened its Brookville location … The MBC Group promptly denied that RTW was the reason for its location decision.
-Companies claimed to be attracted by RTW were actually already located in Indiana … Busche Steel, DynamicsSealCorp USA, Whayne Supply … That Indiana officials count each of these companies as firms whose facilities were drawn to the state because of RTW raises serious concerns regarding the reliability of IEDC claims as to the law’s impact.
-Not a single company says it came to Indiana because of RTW: IEDC is a vocal advocate for RTW … the commission’s Legislative Update report does not identify a single company that says RTW made the difference in its decision to locate in Indiana.
-Indiana continues to lose jobs to non-RTW states: The extent to which RTW is discounted in business location decisions is apparent in the significant number of Indiana firms that—since the passage of RTW—continue to choose to invest in other, non-RTW states. A short sample of such decisions includes:
Manitowic plans to close its Indiana facility and move the jobs to Cleveland, Ohio.16, Diamond Foods plans to close its Indiana facility and move the jobs to California.17, Whirlpool plans to move the jobs remaining in its Evansville, Indiana, facility to Benton Harbor, Michigan.18, Gunite (Accuride) closed its Indiana facility and moved the jobs to Illinois.192012 job growth is due to the economic recovery rather than RTW