Michigan Repeals Its Anti-Union “Right-To-Work” Law

Michigan has recently made a significant change by ending its "right-to-work" law, a policy that has been in place since 2013. This law, initially passed by Michigan Republicans in 2012, was aimed at giving workers the choice of whether to join a union or pay union dues in workplaces where unions were present. The state's Democratic-led legislature decided to overturn this law last March, and the change officially took effect on Tuesday.

"Right-to-work" laws are designed to prevent agreements that require all employees in a unionized workplace to pay union dues. These laws have been adopted by 26 states across the U.S., with Michigan being one of the more recent ones until its recent repeal. Supporters of these laws argue that they give workers freedom of choice and help attract businesses by promoting private-sector growth. They believe that without such laws, workers might feel compelled to join unions or pay dues, a situation referred to as "compulsory unionism."

However, critics of "right-to-work" laws argue that they weaken unions and, as a result, hinder their ability to negotiate for better wages, benefits, and working conditions. The Economic Policy Institute, a think tank leaning towards the left, points out that workers in states with "right-to-work" laws earn over 3% less than those in states without such laws, even when accounting for various worker and labor market characteristics.

Unions play a crucial role in representing members during contract negotiations and workplace disputes, and they can secure benefits for all workers, including those who are not union members. This is why states without "right-to-work" laws allow unions to charge a fee to non-members, helping to cover the costs of these negotiations and representations.

The repeal in Michigan means that private-sector employers may see unions working to reintroduce clauses that require all employees to contribute to the costs of union representation. However, this change does not affect public-sector workers, following a 2018 Supreme Court ruling that public-sector employees cannot be compelled to pay union dues.

Interestingly, despite the decline in union membership to record low levels, public approval of unions remains high. This might seem surprising, especially with the increased visibility of union activities in recent news. According to Gallup, while the absolute number of union members has grown, nonunion jobs have increased at a faster pace.