Corporate Special Interests Fuel Anti-Middle Class “Right to Work” Push in Minnesota

Today, a think tank backed by corporate special interests released a study promoting anti-middle class legislation in Minnesota.  The right-wing Center of the American Experiment’s report urges lawmakers to make Minnesota a low-wage, anti-middle class “Right to Work” state.

“It should come as no surprise that corporate special interests, who are pushing similar anti-middle class legislation in Indiana and New Hampshire, are trying to impose their agenda on hardworking Minnesotans,” said Minnesota AFL-CIO President Shar Knutson. “The fact remains that these laws exist so corporate CEOs can pay their workers less, cut worker benefits, and line their own pockets.”

The American Legislative Exchange Council (ALEC), a national group backed by corporate special interests, has been pushing similar legislation across the country over the last two years. A recent report identified John Gibbs from Comcast as ALEC’s Corporate State Chairman. Gibbs also serves as Center of the American Experiment’s Vice President.

Contrary to the think tank talking points, anti-middle class “Right to Work” laws actually hurt economic development:

  • Wages for all workers are driven down. Both union and non-union workers in states with these laws make an average of $5,538 less per year than those living in states without the law.
  • Jobs are lost. Not only do these laws fail to create jobs, but they actually cause local economies to lose them. According to the Economic Policy Institute, every $1 million in wage cuts, results in six jobs lost in the local economy.
  • Benefits are reduced. Employers in anti-middle class right to work states are less likely to offer benefits and workers are currently losing health insurance coverage 70 percent faster than in free bargaining states.
  • Workplace safety suffers. According to the U.S. Bureau of Labor Statistics, the rate of workplace deaths is 50 percent higher in anti-middle class right to work states.
  • Less investment in schools. These laws mean lower school funding, more layoffs and larger class sizes. For example, during the 2008 – 2009 school year, anti-middle class right to work states spent only $9,005 per student, compared to $10,966 in Minnesota.

“We’ve seen the conflict these anti-middle class attacks are causing in Wisconsin, Ohio, Indiana, and many other states,” Knutson added. “Fortunately, there is bi-partisan opposition to this un-Minnesotan measure.”