Russell Hodgkins:
'Right to Work' is right for Granite State
NH Union Leader newspaper

The New Hampshire Union Leader newspaper published an Op/Ed in favor of Right to Work today, by Russell Hodgkins of Amherst:

"THE New Hampshire House will soon consider SB 61, “The New Hampshire Right to Work Act”. This bill, already passed by the state Senate, will give individuals the freedom to join, or, more significantly, not join a labor union as a condition of their employment.

You may have seen advertisements on TV claiming this bill is “union busting,” will hurt the NH economy, or otherwise cost New Hampshire families thousands of dollars per year. Opponents of the bill generally present no actual evidence to support their assertions. So let’s examine some actual facts. You’ll see that this bill is not union busting, will benefit the entire state economy, and increase the purchasing power of New Hampshire workers.

First, the bill is clearly not union busting. The bill explicitly affirms the right of all employees to form, join, or assist labor organizations. It also states an employer may not discharge or otherwise discriminate against an employee because of joining…a labor union. It makes it unlawful for employers to cause an employee to be denied employment...because of support…of a labor organization. Thus, there is nothing in the bill that makes unions or union membership illegal, and forbids employers from retaliating against unions or union members.

Second, there is substantial evidence the bill will benefit the entire state economy. Currently, roughly half the states in the country have Right to Work laws, many for over 60 years, so there is a sizeable amount of data addressing the positive economic impact of these laws. Of particular interest to us here in New Hampshire are two states, Indiana and Michigan, which have passed Right to Work laws in the past 10 years. According to the Wall Street Journal, since enacting Right to Work laws, both states experienced job growth rates four times higher than the rate in non-Right to Work states. Unemployment rates in these two states have been consistently below that in non-Right to Work states.

Solid job growth in a state benefits the entire state economy, as new workers spend their income at local supermarkets, hardware stores, or restaurants, for example. A recent Federal Reserve study showed that Right to Work states enjoy “statistically significant differences” showing “superior performance” in income growth and reduction in underemployment and unemployment, while also experiencing higher quality-of-life.

Third, what of the assertion that Right to Work law costs workers money? Critics say that as soon as the Right to Work bill passes, employers will slash the wages of their workers. Is there any evidence to support this claim? Economic studies do not support this allegation. For instance, a study from the non-partisan American Enterprise Institute found that following passage of Right to Work laws in Idaho, Louisiana, Oklahoma, and Texas, there was “no impact” on wages, salaries, or income distribution.

Interestingly, workers in Right to Work states enjoy considerably higher purchasing power than non-Right to Work states. According to data from the U.S. Department of Labor’s Bureau of Labor Statistics, in 2019 (the last year of complete statistics), the median average manufacturing worker’s wage in the 27 Right to Work states was $1,194 per week. By comparison, manufacturing worker wages in the 23 non-Right to Work states were roughly 13% higher. But consider that the cost of living in the non-Right to Work states is significantly higher. Using data from the Council of Community and Economic Research, the cost of living in non-Right to Work states is fully 25% higher than the Right to Work states. So while an average worker may make fewer dollars per week in a Right to Work state, his or her purchasing power is about 12% higher. In other words, a worker’s dollars go further in a Right to Work state.

Here in New Hampshire, we like to speak of the New Hampshire Advantage. We have beautiful scenery, low taxes, excellent schools, and the lowest cost of living of the six New England states. But, like all states, we have been buffeted by the impact of the COVID-19 crisis. We will soon enter a rebuilding phase in our state economy. As we look toward the post-COVID rebuilding process, we will need to ensure that our state is competitive to ensure we continue to grow and prosper.

Passage of the Right to Work bill will preserve the New Hampshire Advantage, putting us in the enviable position of being the only Right to Work state in the Northeast. This bill will be fully consistent with the ideals of the “Live Free of Die” state, benefiting the entire state economy and increasing the purchasing power of workers in the state."

Read more in the Union Leader:
Russell Hodgkins: 'Right to Work' is right for Granite State