FREEDOM TO WORK December 2012 TABLE OF CONTENTS What is Freedom to Wok 3 Why is Freedom to Work Crucial to Michigan 4 Why do Unions Oppose Freedom to Work? 7 Support for Freedom to Work Reform 8 Frequently Asked Questions 10 2|Page Michigan | Freedom to Work FREEDOM TO WORK | The Case for Workplace Fairness & Equality in Michigan Summary Freedom-to-Work ensures workplace fairness and equality, giving workers more control over their own personal decisions. Michigan workers deserve the right to choose whether they want to join a union. A total of 23 other states currently provide hardworking families workplace fairness and equality. With this reform, in Michigan, a person, employee or any other organization, may not require an individual to: - Become or remain a member of a labor organization; Pay dues, fees, assessments or other charges of any kind or amount to a labor organization; or Pay any fees or donations to a third party as a condition of employment. Freedom-to-Work simply protects workers from being required to join and /or pay dues to a labor union as a condition of getting or keeping a job. It prohibits the inclusion of “security” provisions in labor contracts that force workers to join a union against their choice. WORKPLACE FAIRNESS & EQUALITY Michigan families deserve more choices and control over their own lives. Freedom-toWork will restore workplace fairness and equality. Every Michigan worker should be able to choose for her or himself if they want to join and pay wages to a union organization. Every Michigan worker should have the right to get and keep a job based upon their performance, not their politics. COLLECTIVE BARGAINING RIGHTS WILL NOT CHANGE Freedom-to-Work reforms do not prohibit labor unions or collective bargaining; they simply protect workers from being forced to join or pay dues to a labor union against their will. The dozens of other states that have already empowered their workers with workplace fairness and equality still have unions. ATTRACTING THE NEW JOBS AND NEW INDUSTRIES MICHIGAN NEEDS Freedom-to-Work is about fairness and equality for every Michigan worker. Protecting workers will make our state more attractive to new industries and new jobs, leading to economic growth and a healthier economy for our state. Simply put, Freedom-to-Work will help Michigan attract new jobs that we need to compete in the 21st Century. This will help our communities to recover faster economically and will put Michigan on the right track to move forward by creating opportunities not only to today’s workers but tomorrow’s as well. 3|Page Michigan | Freedom to Work FREEDOM TO WORK | The Case for Workplace Fairness & Equality in Michigan WORKPLACE FAIRNESS & EQUALITY First and foremost, workers deserve the right to choose! It’s just not fair that unions should have a government-created monopoly that permanently supplies them with members. Unions should fight for their members, and earn their support. If unions are working on behalf of the employees, employees will be happy to contribute. If not, workers should have the right to pull their financial contributions and keep more money in their own pockets. Poll after Poll Shows Michigan Voters Want and Deserve Workplace Fairness and Equality! • A Marketing Resource Group Poll in March of this year concluded that 52% support and 35% oppose Freedom-to-Work legislation in Michigan. • A Mitchell Survey Poll conducted in February of 2012 concluded that 56% support and 35% oppose Freedom-to-Work legislation in Michigan. • A M-Live / Grand Rapids Press poll of 300 voters in September of 2012 concluded that 51 % support and 27% oppose Freedom-to-Work legislation in Michigan. ATTRACTING THE NEW JOBS AND NEW INDUSTRIES MICHIGAN NEEDS 1. Studies Indicate Freedom-to-Work Would Dramatically Improve Michigan’s Economy – According to a recent study conducted by Northwood University, freedom-to-work states’ economies performed better than nonfreedom-to-work states (including Michigan) in multiple economic metrics. Some examples are: A. Personal Income Growth – Per Capita Income grew 20 percent in Michigan from 2000 – 2010; during the same timeframe Freedom-to-Work states grew 39 percent and non-Freedom-to-Work states grew only 34 percent (Source: Northwood University: 2012 Michigan Economic Competitiveness Study) B. Real Growth in Gross State Product – From 1998 to 2011, Michigan grew at 26.5 percent. While gross state product growth was at 64 percent among non-freedom-to-work states, freedom-to-work states grew 85 percent (Source: Northwood University: 2012 Michigan Economic Competitiveness Study) 4|Page Michigan | Freedom to Work C. Job Growth – From 2001 to 2010, Michigan’s non-farm employment dropped nearly 17 percent, non-freedom-to-work states grew .5 percent and freedom-to-work states grew nearly 4 percent (Source: Northwood University: 2012 Michigan Economic Competitiveness Study) 2. Compulsory Union Dues are Used to Bankroll Growth-Hindering Policies – Unions use the hundreds of millions of dollars in forced contributions they collect each year to bankroll pro-union politicians and programs that hinder and block emerging businesses and job growth, increase red tape, raise taxes, and limit Michigan’s economic opportunities. 3. 23 States Have Already Supported Workers’ Freedom to Choose—23 states have become freedom-to-work states and eliminated forced unionization, forced dues and forced political contributions. These states protected workers freedom to choose where they work and who they support. Moreover, as a group they have enjoyed more rapid employment growth, job preservation and faster recoveries from recession. 4. Personal Income Has Grown Faster Over the Past Decade in Freedomto-Work States than in Others Real Personal Income Growth in Largest U.S. States 2000 – 2010 Forced Union States Freedom-to-Work States California New York Illinois Pennsylvania Ohio Michigan New Jersey Average Texas Florida Georgia North Carolina Virginia Arizona Tennessee Average Up 11.7% Up 13.7% Up 7.7% Up 11.6% Up 1.7% Down 5.0% Up 8.2% Up 8.9 % Up 31.4% Up 25.0% Up 15.6% Up 19.0% Up 25.8% Up 30.2% Up 16.2% Up 24.9% (Sources: Bureau of Economic Analysis, U.S. Commerce Department Bureau of Labor Statistics, U.S. Labor Department) 5|Page Michigan | Freedom to Work av THE NUMBERS 703,000 $48,776 Total Michigan Union Members: Annual Median Union Salary: Average Estimated Percentage of Salary involuntarily collected as 'Dues': 1.5 Annual lost income in the form of dues taken involuntarily from Michigan workers: (Sources: Bureau of Laborstatistics, National Institute of LaborReIab'ons Research) Average Personal Income Per Capita Growth (2000-2010) 4596 - 3596 2596 20.398 1596 - 10% - SS- Mchim Un-too Sum RTW Sum Sum Sun (view -9 us O.-nu 0469000-it Mun Rm -2613: 6|Page U.S. Employment Growth by State (2001 -- 2010) 5.096 3.93 2.096 I 0.595 o.o9s United Sum RTW Sum Sum -5.095 -10.096 -15.09: -16.996 '20" same coma: .o Gross State Product Growth (1998-2011) 90% 85.096 Mchign Umtod Sum RTW Stats Swu Coward no as .'1P9u-In vbnoumbc Michigan Freedom to Work FREEDOM TO WORK | Why Do Big Union Bosses Oppose these Reforms? Unions have evolved into massive political and campaign contribution machines, financed by the involuntary and forced dues and fees of employees across Michigan. Michigan workers are being forced to give money to causes they don’t believe in and candidates they don’t support. It's unfair to force someone against their will to join an organization they don't support. It is unfair to force them, by taking money out of their paycheck, to donate to partisan political candidates they don't believe in. This is America, and we believe in freedom - the freedom to choose what you join and what you don't. If unions are doing their job they should have nothing to fear by giving employees a choice. UNIONS BOSSES’ FLAWED ARGUMENT AGAINST FREEDOMTO-WORK Unions’ argue that freedom-to-work is unfair because according to federal law they are obligated to represent non-members and members. They argue that freedom-to-work gives employees that opt out a free ride and existing members must make up the difference. This is simply not true. In 1938 the Supreme Court expressly upheld union’s ability to negotiate only on behalf of members. The law protects unions’ right to bargain on behalf of members only. Unions voluntarily represent all workers, members and non-members because it increases their leverage for contracts. (Source: 305 U.S. 197 (1938)) 7|Page Michigan | Freedom to Work FREEDOM TO WORK | Support for these Reforms Despite the arguments made by labor leaders, there is significant public support for freedom-to-work reform in Michigan: • A Marketing Resource Group Poll in March of 2012 concluded that 52% support and only 35% oppose Freedom-to-Work legislation in Michigan. • A Mitchell Survey Poll conducted in February of 2012 concluded that 56% support and only 35% oppose Freedom-to-Work legislation in Michigan. • A M-Live / Grand Rapids Press poll of 300 voters in September of 2012 concluded that 51% support and only 27% oppose Freedom-to-Work legislation in Michigan. “I can’t remember when I last saw a poll result that showed more opposition to right-towork than support. If I have seen any it was a long time ago” Steve Mitchell – Mitchell Research CAPCON March 30, 2012 WHAT OTHERS ARE SAYING ABOUT FREEDOM TO WORK IN MICHIGAN “Michigan just can’t afford those kinds of limitations in an era when debt from pension and health obligations to current and retired employees are pushing many local governments to the brink of insolvency” Detroit Free Press – Editorial on Prop 2, 2012 “Unions have long served an important purpose in Michigan, and still do. But when there’s a law in place under which unions can refuse to let employees choose whether or not to fund them, and when they force employees to contribute to political causes they might not support, we know there is a problem” Jared Rodriguez – West Michigan Policy Conference Holland Sentinel Editorial, Feb. 19, 2012 “The truth is right-to-work does not ban unions in any way, it does not get rid of collective bargaining in any way, and it does not stop anyone from forming, joining or assisting a union. All it does is give the choice to workers to refrain from forming, joining or assisting a union as a condition of employment.” Terry Bowman Member of UAW Local 898 and founder of Union Conservatives M-Live, Nov. 19, 2012 “Right-to-work laws abandon the idea of a closed shop, where joining a union local is a condition of employment. Almost half the states have right-to-work laws”. Rob Fowler, SBAM President Heritage Newspapers – Nov. 20, 2012 8|Page Michigan | Freedom to Work “I don’t think right-to-work is the magic bullet that its proponents suggest, nor do I think it’s the bogeyman that labor groups suggest it is. We have had excellent economies in Michigan without right-to-work. But I guess I suggest that members of any institution should tend to be able to choose organizations (to which they belong.)” Rep. Poleski – 64th House District M-Live, Oct. 26, 2012 9|Page Michigan | Freedom to Work FREQUENTLY ASKED QUESTIONS: Q. Why Freedom-to-Work? Why is this right for Michigan? A. Michigan workers have the right to more choice and control over their own lives. Freedom-to-Work will restore workplace fairness and equality. As a matter of principle, every Michigan worker should be able to choose for him or herself whether or not to join a union. And every Michigan worker should be able to get and keep their job because of their performance, not their politics. Additionally, Freedom-to-Work will help Michigan attract the new businesses and new industries we need to compete in the 21st century. That will help our economy not only recover faster, but it will set us on the path to a healthy economy for years to come. It is not enough for Michigan to survive. We’ve proven we can. Looking forward, we want Michigan to thrive. Workplace fairness and equality legislation is an essential building block in our state’s long-term success. Q. What exactly does Freedom-to-Work reform do? A. Freedom-to-Work provides workplace fairness and equality, giving workers more control over their own lives, pocketbook and employment. Michigan workers will be free to choose how they engage with labor organizations. With this reform, in Michigan, a person, employee or any other organization, may not require an individual to: • • • Become or remain a member of a labor organization; Pay dues, fees, assessments or other charges of any kind or amount to a labor organization; or Pay any fees or donations to a third party as a condition of employment. Freedom-to-Work simply protects employees from being required to join and /or pay dues to a labor union as a condition of getting or keeping a job. It prohibits the inclusion of “security” provisions in labor contracts that force workers to join a union against their choice. Michigan families deserve more choices and control over their own lives. Freedom-toWork will restore workplace fairness and equality. As a matter of principle, every Michigan worker should be able to choose for her or himself if they want to join and pay wages to a union organization. Every Michigan worker should have the right to get and keep a job based upon their performance, not their politics. Q. If a worker does not pay union dues, can he or she be fired currently? A. Yes. Q. With the passage of Freedom-to-Work, can a worker be fired for not paying union dues? A. No. 10 | P a g e Michigan | Freedom to Work Q. How does Freedom-to-Work create more jobs? A. Freedom-to-Work opens the door to attracting and retaining more new and expanding companies and the thousands of jobs they bring. Economic experts from across the country say that up to half of all companies that hire them to find a good location won’t even consider states that do not provide workers the Freedom-to-Work. Michigan is automatically losing out on these jobs by not being even considered for these new opportunities. Between 1977 and 2010, Freedom-to-Work states enjoyed nearly double the job growth of non-Freedom-to-Work states. (Source: Indiana Chamber, Associated Press, January 27, 2012) Q. How does living in a Freedom-to-Work state help my family? A. When you look at the real facts, Freedom-to-Work states have a significantly higher per capita personal income growth (11%+ and higher) than states without Freedom-to-Work empowerments. (Source: Bureau of Economic Analysis, U.S. Commerce Department Bureau of Labor Statistics, U.S. Labor Department) Q. Things are already getting better in Michigan. Why change course now? A. Freedom-to-work is not a change in course—it continues Michigan’s move forward. Things are getting better in Michigan, and they’re improving in part because of the decisions made in the last two years to make it easier for employers and employees to work together. We had almost a decade of bad policies that did real damage to the people of this state. We’re finally starting to dig out of that hole. But we’re not there yet, and it would be a mistake to settle for “good enough.” Michiganders are hard-working people, and they deserve to be respected and rewarded for their efforts. By passing a Freedom-to-Work law that guarantees workplace fairness and equality, workers will have the opportunity, prosperity and security they need to build better lives. Q. The governor said Freedom-to-Work wasn’t a priority for him and that he didn’t want it on his desk. He has refused to endorse these efforts publicly. Why act? A. The governor was right at the time he said that. There’s a time and place for everything, and our state had more pressing priorities at that time. That’s why the legislature passed policies – with the governor’s leadership and support – that have helped reduce unemployment and get Michigan’s economy headed in the right direction. But it just isn’t enough to get us back to where we were economically. We have to take the next step and start attracting new industries and new growth to our state. And Freedom-to-Work states have consistently done that more effectively than mandatory-union states. 11 | P a g e Michigan | Freedom to Work Q. Isn’t Freedom-to-Work too divisive an issue for Michigan? A. Absolutely not. Freedom-to-work reform is about workplace fairness and equality and empowering Michigan workers to make the best choices for themselves and their families when it comes to employment and the decision whether or not to join a union. Fairness, equality and empowerment are not divisive—they’re exactly what Michigan workers need and deserve. Empowering workers will lead to better, more responsive unions that facilitate even better relationships and cooperation between labor and management. Q. Isn’t this just a money and power grab for big businesses? A. This isn’t about helping one group or one sector – it’s about helping workers from every area of the state by giving them greater legal protection, more personal freedom and greater economic opportunity. Everyone benefits from a healthy economy. Everyone. Businesses will be better off, unions will be better off, and, most importantly, every-day, hardworking Michiganders will be better off. That’s why Freedom-to-Work is supported by people from all walks of life – including many rank-and-file union members. Empowering people and protecting their rights is something everyone can agree on. Q. Isn’t this really just about trying to break unions? A: Freedom-to-Work is about restoring workplace fairness and equality, not curtailing unions. There shouldn’t be any barriers to personal freedom in this state. Unions have the right to organize. As a matter of principle, individual workers should also have the right and the freedom to choose whether or not to join. That's what Freedom-to-Work is about. It's not anti-union; it's pro-worker, pro-healthy economy and pro-Michigan. Q. Is pushing Freedom-to-Work just political payback for Prop 2? A. The defeat of Prop 2 said that collective bargaining laws are fine as they are and that we should not be enshrining special interest legislation into the constitution. Freedom-toWork isn’t about punishing unions – it’s about giving workers back their freedom to choose. That’s simply the right thing to do, and would be true no matter what had happened with Prop 2. Q. You’ve seen how these fights broke apart Wisconsin and Ohio. Why do you want to bring that fight to MI? A. This isn’t about dividing people – it’s about empowering people. Neither Wisconsin nor Ohio passed a Freedom-to-Work law; they were after something different entirely. Here in Michigan, collective bargaining will stay exactly as it is and the unionization process will stay exactly as it is. Unions will still have rights, and workers will, too. This is fundamentally about freedom, fairness and equality, and those values unite us, not divide us. 12 | P a g e Michigan | Freedom to Work Q. Don’t workers in Freedom-to-Work states get paid lower wages? How do you answer the charge that this is “the Freedom-to-Work for less?” A. Not only do Freedom-to-Work states provide more jobs, the workers in those states enjoy a higher standard of living. Yes, there are places where workers receive lower wages – but that’s because the cost-of-living happens to be lower in those states; they’d get paid less no matter what. Moreover, workers in Freedom-to-Work states don’t have to pay mandatory union dues or make forced political contributions, so they end up with even more take home pay. That’s a win-win for the workers in Michigan. Q. What about the claim that workers in Freedom-to-Work states receive fewer benefits? A. Freedom-to-Work doesn’t affect workers’ ability to bargain for their benefits in any way. If workers feel that management is mistreating them, they’re still free to unionize and fight for their benefits through collective bargaining. All Freedom-to-Work does is give workers the freedom to choose whether or not to join a union. If they believe unionizing is in their best interests, they’re free to do that. If they’re happy without unionizing, they’re free to do that, too. Q. What about the so-called “free-rider” problem? Isn’t it unfair that nonunionized workers will benefit from union deals without having to pay dues? A. Here’s what’s really unfair: in Michigan, as a condition of employment, you can be forced to join a union against your will, then forced to pay union dues for representation you don’t want, and on top of that forced to make mandatory donations to politicians you don’t support. Freedom-to-Work is all about re-establishing workplace fairness and equality. As far as negotiations are concerned, if a union is doing a good job for its members – if its represents the workers’ interests efficiently and effectively – then it won’t have any problem convincing people to join. The union is free to earn support, and the workers are free to give it. That’s the way it should be. Q. Won’t Freedom-to-Work put the safety of our communities and citizens in jeopardy by weakening the police, fire, and nurses unions? A. Our communities will be just as safe. If policemen, firefighters, and nurses are happy with their unions, they’re free to stay in them and can expect the same level of representation. Freedom-to-Work does not affect their ability to unionize or bargain in any way. If anything, it will make the unions even more efficient and effective because they’ll have to work harder for worker support. But here’s what it does affect: People will be able to get and keep their jobs based on their performance, not their politics – and that will help attract talented people to the place we need them most. Let’s say, for instance, that someone would make a great police officer, but he or she disagreed with the union. Under a Freedom-to-Work law, that person would be free to serve their community without violating their principles. So, if anything, we believe our communities will be better-served and more secure – and the workforce will be happier and more empowered. 13 | P a g e Michigan | Freedom to Work Q. What effect will Freedom-to-Work reforms have on public safety? A. None. Freedom-to-Work reforms being considered in Lansing do not affect Michigan police or firefighters. Tradesmen like electricians and elevator operators will continue to be licensed by the state with zero changes to safety requirements. Q. Why would middle-class families be better off under a Freedom-to-Work law than simply belonging to a union? A. Freedom to work reform does not force Michigan families to choose between the two. In fact, that’s the entire point of Freedom-to-Work. It empowers Michiganders to make decisions like that for themselves. For too long, important choices have been made for them – whether or not to join a union, whether or not to donate to a political candidate. This reform gives them back the freedom to choose. If they believe joining a union is in their best interests, they can do that; if they don’t want to, they don’t have to. Michigan families will be able to decide what’s best for them and their future. Q. Does Freedom-to-Work outlaw or restrict a union’s right to organize and bargain collectively? A. NO. Freedom-to-Work empowers workers with the choice to join a union or not to join a union; nothing more. The right to organize and collectively bargain is and will remain protected under federal law – as it should be. Q. Does Freedom-to-Work affect union-sponsored benefit plans for workers? A. No. Q. Does Freedom-to-Work mean the end of unions in Michigan? A. No. Freedom-to-Work simply protects employees from being forced to join a union and pay dues against their will. It does not prohibit labor unions or collective bargaining. Freedom-to-Work lets an individual employee decide if he or she wants to support the union with their own money. Freedom-to-work is about restoring workplace fairness and equality, not curtailing unions. There shouldn’t be any barriers to personal freedom in Michigan. Q. How big of a “business” is unionization in Michigan? A. Over 700,000 Michigan workers are currently forced to pay more than half a billion annually in union dues. As unions have failed to provide adequate value in exchange for their dues, they have seen workers move to other industries. With the enactment of Freedom-to-Work in Michigan, there will still be unions and workers who voluntarily choose to pay the dues required by Big Labor. (Source: Bureau of Labor Statistics, National Labor Relations Research Institute) 14 | P a g e Michigan | Freedom to Work Q. Why doesn’t Federal Law protect workers and empower them with the Freedom-to-Work? A. It’s complicated. The U.S. Supreme Court has ruled it unconstitutional to force a worker to be a “member” of a union as a condition of employment. That’s good! That worker choice is freedom. However, Big Labor uses a loophole in non-Freedom-to-Work states. If you are not a “member” of the union, workers without Freedom-to-Work protection, must pay so-called “agency” or “representation fees” which typically are nearly the same as full member dues, thereby sidestepping these protections. Federal law allows states to enact Freedom-to-Work in order to close this loophole and empower workers with their rightful full measure of choice. ### 15 | P a g e Michigan | Freedom to Work