Two new studies show failure of RTW; Governor, legislators take note

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By ED FINKELSTEIN
Publisher

In yet another devastating blow to the Big Lie that the so-called “right-to-work (for less)” law is going to benefit Missouri, two new reports have come to light that should embarrass Governor Eric Greitens and those Republicans who turned their backs on all working Missourians to support this anti-worker law rammed through by the Republican-dominated legislature.

Workers’ household incomes dropping in RTW states

A newly issued report on Median Household Income with the latest data from the U.S. Census Bureau comparing 2010 with 2015 median household incomes, shows that more RTW states slipped BELOW the median household income of all states.

In 2010 18 RTW states (75%) were below the median household income; in 2015 it was 21 RTW states (77%) below.

See chart on right.

MISSOURI IMPROVED

Meanwhile, the fortunes of Missouri families improved as jobs increased and wages grew — without the help of RTW!

Missouri working families saw a dramatic increase in the Median Household Income, from 36th in the nation, 10 spots below the average of all states in 2010, to 22nd in the nation, three places ABOVE the national average in 2015.

During those five years, the median household income for Missouri increased from $45,817 to $59,196; that’s a $13,379 annual improvement or $259.29 a week.

ILLINOIS FARES BETTER TOO

A worker-friendly state, Illinois faired much better than Missouri and better than almost all RTW states.

In 2010 Illinois was already above the national average. In 2015 it moved from 22nd place to 19th place among all states when its median household income jumped from $50,728 to $60,413, an annual boost of $9,685 or $186.25 a week.

In other words, in comparison to the household wage growth in America, most RTW states overall did not fare as well as worker-friendly states. Certainly, there were exceptions, but the fact that two additional RTW states dropped below the national household income average shows how RTW states lag behind the states where companies and workers have the freedom to negotiate without government interference, which is now happening in Missouri.

Wellness Index: RTW states fare poorly

In a most unique comparison of how well states overall fare, a just-released “sustainability” or wellness assessment once more proves that the so-called “right-to-work (for less)” states are far less desirable places to work and live than worker friendly states.

The report from the nationally recognized Boston Consulting Group (BCG) measures a state’s economy, investments, sustainability and equality to come up with its Sustainability Economic Development Assessment (SEDA) designed to measure the overall livability, the “wellness” of a state. The rankings included:

  • First is Massachusetts (non-RTW); Last is is Louisiana (RTW).
  • Missouri ranks 35th, nothing to brag about, but better than the 14 RTW states ranking below us.
  • Illinois ranked 34th among all states, one notch ahead of Missouri.

Compared with the national average of all states, 17 RTW states (81%) are ranked BELOW than the national average while only 11 are above (38%). In contrast, worker-friendly non-RTW states: only four states are below the national average (18%) and 18 are above the national average (82%). A marked difference.

(EDITOR’S NOTE: This speaks to the issue of the legislature needing to focus on passing laws to help peoples’ lives not making the destruction of unions their top priority, showing what little understanding they have of the value of unions in the state’s economy and what disregard they have for all working Missourians.)

Notes the BCG study: This report is “not simply to spotlight the wealthiest, the healthiest or best-governed…” but is designed to measure “those that are more comprehensive and indicative of long-term success.”

Yet another indicator that RTW overall does little for working families.

BCG is an American worldwide management-consulting firm with offices in 48 countries advising clients in the private, public, and not-for-profit sectors. It is considered one of the most prestigious management-consulting firms in the world.

 

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