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CandleFocus Glossary Editor
Right-to-work (RTW) laws are state laws that give workers the choice of whether or not to join a union. Generally, these laws allow workers to opt out of union membership and dues. Currently, 27 US states have RTW laws, as of 2020.
Right-to-work laws are supported and argued for by proponents who see them as an extension of worker freedom of choice. Many see this law as beneficial to the employee, as it would no longer be mandatory to become a union member nor pay union dues and fees to keep a job. Proponents of right-to-work laws also argue that the laws typically result in more business investment in the RTW states, leading to greater economic growth and job opportunities.
Critics of right-to-work laws argue that they weaken union power and benefit employers and corporate power. Furthermore, research indicates that right-to-work laws may reduce wages as employers do not have to pay the same amount to non-union workers as to union workers. Studies have also found that RTW states have lower unionization rates and lower levels of health and pension coverage for workers.
Additionally, research has shown mixed results when it comes to the overall effects of RTW laws on average wages. On the one hand, a 2020 study found that RTW states enjoyed higher employment and start-up rates but lower wages, while another study showed that right-to-work laws had no effect on average wages, but instead benefited only higher-earning workers, with average wages increasing by 3-5% in those states over non-RTW states.
To summarize, the debate surrounding RTW laws continues, both in terms of the cost to workers and to employers, as well as its overall consequences for union power and economic growth. On the one hand, proponents argue for increased worker freedom of choice, while opponents argue that RTW laws weaken union power and are associated with lower wage rates for workers. While research suggests there are mixed results when it comes to wage effects, in terms of overall employment growth and business investment RTW laws appear to have had a positive effect on the economy.
Right-to-work laws are supported and argued for by proponents who see them as an extension of worker freedom of choice. Many see this law as beneficial to the employee, as it would no longer be mandatory to become a union member nor pay union dues and fees to keep a job. Proponents of right-to-work laws also argue that the laws typically result in more business investment in the RTW states, leading to greater economic growth and job opportunities.
Critics of right-to-work laws argue that they weaken union power and benefit employers and corporate power. Furthermore, research indicates that right-to-work laws may reduce wages as employers do not have to pay the same amount to non-union workers as to union workers. Studies have also found that RTW states have lower unionization rates and lower levels of health and pension coverage for workers.
Additionally, research has shown mixed results when it comes to the overall effects of RTW laws on average wages. On the one hand, a 2020 study found that RTW states enjoyed higher employment and start-up rates but lower wages, while another study showed that right-to-work laws had no effect on average wages, but instead benefited only higher-earning workers, with average wages increasing by 3-5% in those states over non-RTW states.
To summarize, the debate surrounding RTW laws continues, both in terms of the cost to workers and to employers, as well as its overall consequences for union power and economic growth. On the one hand, proponents argue for increased worker freedom of choice, while opponents argue that RTW laws weaken union power and are associated with lower wage rates for workers. While research suggests there are mixed results when it comes to wage effects, in terms of overall employment growth and business investment RTW laws appear to have had a positive effect on the economy.