The state of Michigan is poised to repeal its right-to-work law, which has been in effect for 10 years, making it the first state legislature to do so in decades. The Michigan House of Representatives passed a bill on March 8 to that end, and the Senate followed suit on March 14. The bill returned to both bodies’ respective labor committees for technical revisions, but for all intents and purposes, the repeal is a foregone conclusion. Gov. Gretchen Whitmer has reportedly stated that she will sign the bill when it reaches her desk, and assuming she does, it will become law 90 days after the end of the current legislative session.
A majority of states (27) maintain right-to-work statutes, and Michigan has benefited from its law since it took effect in 2013. Despite frivolous claims to the contrary, being a right-to-work state makes Michigan (for now) and the others more competitive with neighboring states and nationally. According to a report commissioned by the U.S. Chamber to evaluate the economic evidence about right-to-work (RTW) laws, “[t]here is a large body of rigorous economic research on the effects of RTW laws on economic performance. Overall, that research suggests that RTW laws have a positive impact on economic growth, employment, investment, and innovation, both directly and indirectly.”
The economic evidence over the last decade does seem to affirm that observation, and the results are rather dramatic. Data from the Federal Reserve Bank in St. Louis, reveal...
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