Obama Trash Talks About Right To Work

Bertel Schmitt
by Bertel Schmitt

President Obama joined the debate about Michigan’s “right-to-work” law. “What they’re really talking about is giving you the right to work for less money,” Obama told workers during a visit to the Daimler Detroit Diesel plant in Redford, Michigan. He forgot to mention three important items.

  • The right-to-work law will put unemployed people in Michigan back to work. Given the choice, investments into new factories prefer right-to-work states.
  • Under the two-class system negotiated by the UAW, new hires already make much less money.
  • In a right-to-work state, workers have the right yo work for more money, because they cannot be forced to pay union dues.

According to Reuters, “the new laws are not expected to have much immediate impact because existing union contracts would be preserved, they could, over time, further weaken the UAW, which has already seen its influence wane in negotiating with the major automakers.”

Bertel Schmitt
Bertel Schmitt

Bertel Schmitt comes back to journalism after taking a 35 year break in advertising and marketing. He ran and owned advertising agencies in Duesseldorf, Germany, and New York City. Volkswagen A.G. was Bertel's most important corporate account. Schmitt's advertising and marketing career touched many corners of the industry with a special focus on automotive products and services. Since 2004, he lives in Japan and China with his wife <a href="http://www.tomokoandbertel.com"> Tomoko </a>. Bertel Schmitt is a founding board member of the <a href="http://www.offshoresuperseries.com"> Offshore Super Series </a>, an American offshore powerboat racing organization. He is co-owner of the racing team Typhoon.

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  • Kenzter Kenzter on Dec 11, 2012

    Of the 10 states with the highest poverty rates, 8 of them are right to work states. Doesn't seem to be working so well for them.

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    • Geeber Geeber on Dec 11, 2012

      @geeber As I said in my prior post, manufacturing jobs are being lost due to automation and improved production processes. Throughout the nation, manufacturing jobs have declined by 1/3 over the last decade. Meanwhile, manufacturing output has CLIMBED by a similar amount over the same decade. Oklahoma was not immune to those trends. The closure of GM's Oklahoma City assembly plant in 2006 helped fuel the decline of manufacturing jobs in Oklahoma. Workers in all GM plants are automatically a member of the UAW, even if said plant is located in a right-to-work state. Apparently union membership doesn't guarantee one a job. That's the real story in Oklahoma. Blaming the passage a right-to-work law by the Oklahoma state government on manufacturing job losses is quite a stretch, at best.

  • Landcrusher Landcrusher on Dec 11, 2012

    This discussion isn't going anywhere, but a few people have made comments that bring up something much less controversial and worth saying. No matter what anyone ever says, does, or legislates, the most important thing an individual does economically is decide who to do business with. Taking employment is the most important part of that. There is no free lunch. What you decide has consequences and many of those are not obvious. The government will never solve this situation. On the contrary, it will always exacerbate the problem by regulating employers so their differences are hidden or the bad employers take harsher means to achieve their goals. Meanwhile, as an employer itself, the government will be just as bad as anyone else. Employers and employees are people and quality varies. It's up to you. Deal.

  • Landcrusher Landcrusher on Dec 11, 2012

    Love all the percentages of who makes what. Most members of the top x percent spend most of their lives in a much lower x percent. A lot of the top earners have been in trade unions. Not too many have been in shop unions except the ones who knew they weren't staying and the ones running the unions. I suppose, if you really have no economic ambition, you may never make it to the top five percent, but most people certainly can. I wonder how many actually do. That would be an interesting stat.

  • 50merc 50merc on Dec 11, 2012

    Right To Work was instituted in Oklahoma as a result of vote of the people. RTW had nothing to do with opening or closing the Oklahoma City assembly plant. The factory was noted for high quality, but its distance from suppliers in the upper midwest was a disadvantage. The last product made there was the GMC Envoy and the like. The decision that there would be no replacement product was made at headquarters, to Oklahoma's sorrow.

    • See 1 previous
    • Landcrusher Landcrusher on Dec 12, 2012

      So what you guys are saying is doing the right thing is no guarantee? Well, yeah. That's why there are still Keynesian economists even after Keynes himself rebuked their misuse of his work. Some guy, somewhere, can always find a factoid to show the other guy's theory is unsound while his is a sure thing.

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