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What does 'right-to-work' mean for Missouri?

Posted at 9:50 PM, Feb 06, 2017
and last updated 2017-02-06 23:30:08-05

Governor Eric Greitens signed right-to-work legislation Monday, making Missouri the 28th state in the country to adopt it.

The governor called it, "A great victory for Missouri families and for people in the state of Missouri who need jobs."

Mike Adams is a road driver who has been a member of a union for 22 years. "It's a right to work for less," Adams shared. "I've worked for the other outfits and it's basically what right-to-work is. They'll pay you anything and you either like it or you're without a job."

Others disagree. 41 Action News talked to Patrick Ishmael, Director of Government Accountability at the Show-Me Institute. Ishmael says the law can bring in, "New contracts. It opens up the opportunity for businesses that had avoided coming to the state before to come in, open up shop or expand shop. I think that offers lots of opportunity for workers and great opportunities for the Missouri economy."

The U.S. Bureau of Economic Analysis found that job growth in right-to-work states from 2005-2015 was 8.6 percent compared to 5 percent in states without right-to-work.

When it comes to wages, studies are split. The Economic Policy Institute says wages are 3 percent lower in right-to-work states, which comes out to $1558 a year for a full-time employee.

The Heritage Foundation disagrees, saying the EPI study does not completely account for other economic factors like the cost of living. According to this study, real wages are virtually equal except for government employees who make 5 percent less. 

"If you look at other states across the country, right to work has been a big part of the growth strategies of a lot of states," Ishmael explained. 

It's important to note that this right-to-work legislation will only affect new contracts in Missouri, old ones are protected under a grandfather clause.

Missouri AFL-CIO filed a petition to freeze the right-to-work law and force it onto a 2018 ballot. The union needs signatures from 5 percent of voters from two-thirds of the state's congressional districts. The group has an August 28th deadline because that's when the law is set to take effect.

Adams added, "They claim it's going to be more jobs coming to the state. I guess we'll just have to wait and see."

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