All Eyes on Indiana as Governor to Sign Right-to-Work Law

Indiana Governor Mitch Daniels is expected to sign a right-to-work law by next week – a move that makes the industrial heartland state more attractive to employers and increases economic development incentives.

"Only 23 states -- mostly in the South -- have right-to-work laws that make it illegal to require employees to join and participate in a union," explains Gerald A. Golden, a partner at Neal, Gerber & Eisenberg, LLP (Chicago) who represents employers with union-related issues. "Indiana is the first in the region to institute this law, and we can expect neighboring states like Illinois, Ohio and Michigan to take note."

Indiana, which is already known as one of the best states in the Northeast for businesses, can add the right-to-work law to its checklist of economic development incentives for businesses entering the region.

"This is a major setback for unions," adds Mr. Golden. "It is not unreasonable to predict that over the next few years, union membership and participation in Indiana will decrease by one-third to one-half and as a result, collective bargaining will diminish. It is only a matter of time before employers in other northern industrial states start pressuring their legislature for similar incentives."

Mr. Golden adds that it is not a coincidence that this major political move comes just before Super Bowl XLVI in Indianapolis. "Indiana will be in the national spotlight next week,” he says. “The state is clearly looking to be more attractive to businesses seeking to settle."

Mr. Golden is available for interviews to discuss the law's impact on employers and the possible implications that can arise in other states as a result of Indiana's legislative action. [01/27/2012]