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South Carolina’s Workforce Shrinks Again … To Another Record LowWell if Bill Fiala says so it must be true. Who is Bill Fiala?
Fri, 11/18/2011 - 10:05am10 Comments
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- Right to-Work Laws Pay Off With Manufacturing Jobs
by Bill Fiala, Waller Lansden Dortch & Davis
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Bill Fiala
The pro-job environment in right-to-work states is paying off with new automotive jobs. Tennessee is the home of Volkswagen’s new $1 billion auto assembly plant, as well as plants operated by Nissan and GM. Alabama boasts billion-dollar plants operated by Mercedes-Benz, Honda and Hyundai. Texas enjoys a large automotive manufacturing presence with Peterbilt, GM, International and Toyota. One reason for these states’ growing success in the automotive industry is their strong right-to-work laws embodying a commitment to a worker’s right to choose not to be part of a labor union. Right-to-work laws are an important factor to companies considering where to set up new operations.
In the twenty-two states with right-to-work laws, workers cannot be forced to join unions, or to pay union dues if they decide not to join. In non-right-to-work states, workers must join unions or pay union dues to keep their jobs. If an employee working in a non-right-to-work state fails to join the union or pay union dues then the union forces the company to terminate the employee.
What does the automotive industry’s decision to set up shop mean for these right-to-work states? It means jobs and increased tax revenues. An analysis by the University of Tennessee predicted that Volkswagen’s recent investment will raise incomes in the region by $511 million annually and will generate more than $55 million per year in new tax revenues. Other automotive manufacturers and component suppliers are spending billions in upgrades and new construction at plants in right-to-work states.
Many states have not been as fortunate as Tennessee, Alabama and Texas. For example, states such as New Hampshire have problems attracting businesses and producing job growth partly because union’s have successfully thwarted lawmakers’ repeated attempts to pass right-to-work legislation. The New Hampshire legislature overwhelmingly passed right-to-work legislation earlier this year only to have the legislation vetoed by the governor. New Hampshire would have been the first state in the Northeast to have a right-to-work law.
Right-To-Work Laws Pay Off With Manufacturing Jobs
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South Carolina's Manufacturing Revolution - Palmetto Promise Institute
SOUTH CAROLINA’S MANUFACTURING REVOLUTION
Jul 09, 2015
Ellen Weav
Great golf, gorgeous beaches, spicy shrimp and grits, and tea so sweet it’ll knock you into next Tuesday: welcome to South Carolina! But if you listen carefully, above the idyllic lull of the Atlantic waves, you’ll hear the hum of engines as a Palmetto State manufacturing powerhouse roars to life.
Since January 2011, manufacturing jobs in South Carolina have grown at 13.5 percent, nearly double the 7 percent average of our Southeastern neighbors, with a record high $29.7 billion in merchandise exports last year.
Manufacturing job creation has exceeded 200,000 new jobs every year since 2006, with major announcements from Boeing, Bridgestone, Michelin, Giti Tire, Continental, Daimler, and BMW, just to name a few. In fact, in 2013, South Carolina passed up Oklahoma and Ohio as the nation’s leading tire producer and exporter. And scuttlebutt has recently been centered on another “whale” that may be surfacing as Volvo shops for a home for a new American plant.
Despite economists’ warnings of a “leveling-off” period to all this growth due to a strengthening dollar, rising interest rates, and a natural slow-down of the pent-up post-recession expansion (they don’t call economics the dismal science for nothing, after all), things continue to look cheery across the South.
There is no question that the Southeast—and South Carolina specifically—has been a huge beneficiary of the key underlying premise of Competitive Federalism: as Rust Belt states have taxed, regulated, and unionized manufacturers to death, states like South Carolina have opened their arms.
There are many factors to South Carolina’s success story, including being located in a logistics sweet spot on the I-95 corridor and home to an exceptional deep-water port. But like most generational changes, it started with a visionary leader who refused to take “no” for an answer.
Labor participation in South Carolina is now down a full percentage point since McMaster took office in late January 2017 – a steady downward trend that signals a broader weakening of the state’s employment situation.