Kokomo — Indiana Gov. Mitch Daniels said the lack of a right-to-work law is costing the state opportunities to attract business investments.
The Indiana Legislature is expected to reconsider right-to-work legislation that resulted in House Democrats staging a walkout during the 2011 session. The measure would allow workers to opt out of paying union dues.
During a visit Thursday with the Kokomo Tribune’s editorial board, Daniels said he hasn’t publicly announced a position on the issue. Right-to-work legislation would prevent employers from requiring workers to pay union dues at a company where a union represents workers.
Daniels said the legislation deserves a careful look by lawmakers and a legislative study committee issued a report this week. He said the study confirmed what was expected that the lack of right-to-work legislation is costing Indiana job opportunities.
In the current economic climate, the state must consider anything that might provide more opportunities for job growth, he said.
Since the Indiana Economic Development Corp. was formed in 2005, it has been involved in more than 1,000 transactions to grow or bring jobs to the state, he said.
“We have a huge body of experience to look at,” Daniels said. “When we’re in a competitive situation and most of those were companies looking for more space, our win rate is very high. In some years, it has approached 90 percent.
“But at the same time we know there is about a quarter of the opportunities that won’t look at us because of the lack of this law,” he continued.
Daniels said he thinks those companies are making a mistake, but it doesn’t make a difference if they decided right-to-work legislation is one of their criteria.
“We don’t even have a chance,” he said. “The reason is specifically to bring more jobs here, I think we have to look at it.”
Daniels expects the heated debate to flare up again during the 2012 legislative session.
“Up to a point that’s fine, but obviously I don’t agree when people who try to wreck the whole process, really subvert democracy,” he said. “Noise and expression of strong disagreement is perfectly fine, but last year they went too far. I hope we don’t go through that again.”
Daniels said Democrats have to be careful how they approach the issue because polls show 70 percent to 75 percent of Indiana residents support the legislation.
He said the quality of the opportunities for job growth in the state has been very good.
“Yesterday, one of these ratings appeared [looking at] what are the best states for business and investment for jobs,” Daniels said. “Indiana moved up to fifth or sixth. Once again, all these maps look alike, there will be a few Sunbelt states and then there is us.”
He said it is frustrating to be in that position when few companies are looking to add jobs because of the economic slowdown.
“I always say, ‘It’s like being the prettiest girl in school and they call off the prom,’” Daniels laughed. “[You] look so attractive, just not a lot of people dating.”
Every state above Indiana is a right-to-work state, he said.
Daniels disputed the claim that right-to-work legislation results in lower-paying jobs.
“Some will say the average wage in right-to-work states is lower, that’s right but they’ve been adding jobs and income faster than the rest of the country,” he said. “Every state needs jobs, and we’re no different. If there are reasons not to proceed, that is not the reason.”
Daniels said he is keeping an open stance on the issue until the Legislature passes a bill.
“We’re talking about a single-digit percentage of Indiana workers, in the private sector we’re talking about 8 or 9 percent, 90 percent of all our workers are in a non-compulsory dues-paying environment,” he said.
Daniels said the 8 percent or 9 percent have money and can hire buses to bring people to the Statehouse.
“They have a louder voice than their numbers represent,” he said.