Sunday, March 6, 2011

Right-to-work law and Economic Growth

The Higgins Labor Studies Program at the University of Notre Dame weighs in on the Indiana right-to-work law debate (h/t Balloon Juice):

Robert Ady was a longtime executive of Deloitte & Touche / Fantus Consulting, a
leading site location firm. He is said to have assisted more site locations than any living
person. He concludes that it is the quality of the work force, not low wages, that is
decisive in the site location decision: “The single most important factor in site selection
today is the quality of the available work force. Companies locate and expand in
communities that can demonstrate that the indigenous work force has the necessary skills
required by the company or that have the training facilities to develop those skills for
the company” (Ady, 1997, p. 81).
The push for right-to-work in Ohio, Indiana and Wisconsin is not a push for being able to attract new businesses in those states.  It is a push to give existing businesses a stronger hand in lowering labor costs.  The report blasts "trickle-down economics," and rightfully so. 

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