Right-to-work policies saw a major win in Michigan toward the end of 2012, when Gov. Rick Snyder signed the bill to ban any required union fees as a condition of employment in the state. Like other right-to-work legislation, this effectively hamstringed local unions, but drew the attention of corporations that may fuel new job creation.
Gov. Snyder pushed for and enacted the bill as part of his stance on a job-friendly, pro-business Michigan. Soon after he signed the bill, Synder told The Detroit News, “The phone’s already been ringing at the MEDC (Michigan Economic Development Corp.) since we passed that legislation.”
He added, “The first thing they say is, ‘Is it true?’ They think they heard it wrong or it must be a mistake.”
If the Republican governor’s plans succeed, the right-to-work policy will lead to more companies setting up factory centers and stores in the region, thus creating much-needed jobs. With Michigan’s unemployment rate hovering around 8.9%, the state is hoping more businesses will come to the state.
Two jobs are certainly assured. The legislation requires revamping many workplace policies, and Michigan is looking to hire two specialists to create and disseminate the necessary information to businesses currently operating in the state. One new position will be an administrative law specialist paid to help implement the law, explaining the ramifications to both employers and unions. According to The Detroit News, the position will pay between $76,000 and $106,000. It will be supported by a legal secretary position.
The right-to-work legislation trend has left unions across the United States fuming. Michigan’s bill received an extra helping of attention thanks to Michigan’s long industrial and steel factory history, traditionally highly supportive of union-based labor. Now that the tides are changing, all those manufacturers will have to change the way they conduct business when current union contracts come to an end. Their new strategies and freedom of negotiation may also lead to job creation, but most efforts are being placed in out-of-state firms that had been avoiding Michigan because of the extra costs of doing business with unions.
The bill will go into effect at the end of March 2013
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