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KSM Blog | Katz, Sapper & Miller CPA

Right to Work and Indiana Manufacturers

Posted 3:24 PM by

"Right to Work" legislation has been a hot topic in Indiana for some time, and it is one that could have a large impact on the manufacturing sector. 

The Indianapolis Star recently ran an op ed authored by Brian Bosma, speaker of the Indiana House of Representatives, regarding this very issue: 

With my recent announcement that attracting more jobs to Indiana will be the top priority for the upcoming session, folks on both sides of the worker freedom issue are speaking out. Notwithstanding the rhetoric and scare tactics, it's time for straight talk about making Indiana the 23rd right-to-work state in the nation.

While Indiana ranks near the top on virtually every state ranking for job creation environment, the national malaise has kept our unemployment rate hovering at around 9 percent. Despite the state's strict fiscal discipline and innovative job creation measures, some 275,000 Hoosiers who want work can't find a job, and tens of thousands more are underemployed. The job prospects for young college graduates are dim, and nearly a quarter of returning veterans are without jobs. These are grim statistics.

After a summer study committee found that nearly half of all national employers specify "right-to-work states only" when considering their expansion opportunities, and after testimony from economic development experts that Indiana has lost substantial employment opportunities for the same reason, it's time to move forward with a Hoosier Right to Work Act.

Read the complete editorial here.

Bosma essentially takes a complicated issue that could have a large impact and breaks it down to a simple idea: Workers should have the right to choose whether they join a union and that the payment of union dues cannot be a manditory requirement of employment. Is it really that simple? This issue could potentially have a large impact on the Indiana manufacturing industry as manufacturing companies consider budget and workforce implications.

While the outcome is yet to be determined, this piece of legislation is one that manufacturers should keep a close eye on.

About the Author
Justin Hayes is a director in Katz, Sapper & Miller’s Audit and Assurance Services Group. Justin works with clients to help ensure accurate financial reporting, keeping an eye on their bottom line, helping them avoid risk and maximize efficiencies. Connect with him on LinkedIn.

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Comments (1)
Jake Doll wrote
I ran two plants in northern IN some five years ago and they were non-union. The employees did not want a union as we had a good incentive system. I was also able to motivate the employees in ways that would have been stifled with a union present.
Posted Dec 15 2011 10:08 AM
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