Shocker: New “Right To Work” State Already Attracting New Business

120105_Statehouse-RTW-Right-to-Work-protest-(3)

Back on February 2nd, USA Today reported that Indiana had become the “rust belt’s” first right-to-work state, easing laws requiring mandatory union enrollment.

The state Senate voted 28-22 to pass the labor union bill as thousands of protesters packed Statehouse hallways, shouting their disapproval. Thousands more were outside waiting to get in.

Gov. Mitch Daniels signed the bill shortly thereafter without ceremony, making Indiana the 23rd state in the nation with such a law. Indiana also is the first state in the “Rust Belt” of the Midwest and Northeast to adopt the measure.

Under right-to-work laws, companies can no longer negotiate a contract with a union that requires non-members to pay fees for representation. The House earlier passed the measure 54-44.

Daniels and other Republican supporters characterized the measure as needed for Indiana to attract jobs.

Now, a month later, what’s happening in Indiana? Why, the state’s new right-to-work status is attracting new jobs:

An automaker is investing hundreds of millions and adding well more than a thousand positions at transmission and metal casting plants in Indiana.

Thursday morning, Chrysler announced it is adding 1,250 jobs to increase production of fuel-efficient transmissions in north-central Indiana. It’s also investing $374 million in area plants.

Just a coincidence, I’m sure.

It’s amazing what happens when policies embrace economic freedom and free choice.

Rob Port is the editor of SayAnythingBlog.com. In 2011 he was a finalist for the Watch Dog of the Year from the Sam Adams Alliance and winner of the Americans For Prosperity Award for Online Excellence. In 2013 the Washington Post named SAB one of the nation's top state-based political blogs, and named Rob one of the state's best political reporters. He writes a weekly column for several North Dakota newspapers, and also serves as a policy fellow for the North Dakota Policy Council.

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  • ellinas1

    The Indiana Economic Development Corporation offered Chrysler up to
    $11,500,000 in conditional tax credits and up to $200,000 in training
    grants based on the company’s job creation plans. The tax credits are
    performance-based, which means until Hoosiers are hired, the company is
    allowed to claim incentives. The cities of Kokomo and Tipton have
    approved additional tax abatement.

  • ellinas1

    Is this the same Chrysler Corporation you and yours wanted to go bankrupt, and would/will not buy cars from?
    And now you are giving credit to “right to work” laws for a company that is expanding it’s production lines to accommodate their increased sales?
    Oh the horrors!

    • JoeMN

      In bankruptcy Chrysler would likely have been broken up, with it’s profitable divisions sold to investors, while union infested unprofitable ones closed down.
      The brands would NOT have vanished entirely.
      The difference here is that those same unprofitable ones are being allowed to wither and die slowly on the vine, with taxpayers picking up the tab while Chrysler now retools in a more friendly right to work states.
      Oh, those workers may still choose individually to unionize, but they no longer carry the pipe that often breaks the backs of business
      Your beloved government did nothing but outright steal taxpayers money with no ROI for what private investors would have otherwise done.
      Oh, and one more bit of painful news for you, ellinas
      That Tipton plant ?
      It was to be the centerpiece of Obama’s green investment, Abound Solar.

      http://blogs.denverpost.com/thebalancesheet/2012/11/12/tipton-indianas-brush-abound-solar-leaves-county-wounded/7234/

      The DOE was involved in site selection,” said Abound’s Hill. “The DOE
      wanted a site that was ready to go and Tipton had this brand new
      factory building.”

      “It was also a great political site, bringing green jobs to the rust
      belt,” Hill said. “President Obama announced it on his weekly radio
      broadcast.”
      So much for that experiment in “taxpayer investment”

      • ellinas1

        “In bankruptcy Chrysler would likely have been broken up, with it’s
        profitable divisions sold to investors, while union infested
        unprofitable ones closed down.
        The brands would NOT have vanished entirely.”

        Like this one, right?
        http://www.unionplus.org/blog/union-issues/hostess-bakery-movie?email1

        • two_amber_lamps

          Hello Ellinasty! How are you today?

          • ellinas1

            Happy New Year, harpy.

          • two_amber_lamps

            Oh you silly little pederast! Are you name-calling again?

          • ellinas1

            Happy New Year, harpy.

        • JoeMN

          After you finish watching the bakery union cry into their beer, the answer is hopefully yes

          http://www.star-telegram.com/2013/02/27/4649159/wonder-other-hostess-bread-brands.html

          Thank the unions for rendering the company unprofitable.

          And you just cannot negotiate and expect 2 billion worth of pension obligations that were never there.

          http://www.star-telegram.com/2013/02/27/4649159/wonder-other-hostess-bread-brands.html

          And as for those “massive profits to be gleaned by the sale of those brands the union claims investors will be carting off ?

          Surely the bankruptcy judge will have something to say about that

          Again.
          It’s the second time in a decade — which is why bankruptcy wags say the
          company is in “Chapter 22″ rather than merely Chapter 11. Loaded down,
          astonishingly, with nearly $1 billion in debt,

          • JoeMN
          • ellinas1

            JoeMN says: “And as for those “massive profits to be gleaned by the sale of those brands the union claims investors will be carting off ?

            From Joe’s link: “Taken together, Hostess has said its six bread brands generated just under $1 billion in sales last year, with Wonder bread accounting for about half of that. In a bankruptcy court filing Monday, Hostess’ second largest union, the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union, objected to the sale of the breads, saying Flowers “has not committed to preserve a single job.”

            Read more here: http://www.star-telegram.com/2013/02/27/4649159/wonder-other-hostess-bread-brands.html#storylink=cpy

          • JoeMN

            Committed to preserving jobs for the Bakers union ?
            This same union which is now demanding a bankrupt company find an extra 2 billion to fulfill pension obligations or pay them cash ?

            Plus any new owner to accept the same contract which bankrupted the last ?
            Why doesn’t the Bakers union simply buy Hostess themselves ?
            It’s for sale.
            Then they can rake in those big bucks.
            Just think, ellenas, after just 2 years, they should accumulate enough GROSS revenue to refill those pensions.

          • ellinas1

            I answered your question from the link you provided.
            Have some balls to acknowledge I was right before you move to the next subject.

          • JoeMN

            I showed you a potential buyer for some of the Hostess brands
            That there apparently is no room for the bloated bakers union is neither here nor there.
            This is the same message Chrysler is sending by expanding in a right to work state.

            Your precious unions are a large contributor in bankrupting private companies.

            Just as public sector unions are now bankrupting cities and eventually states.

          • ellinas1

            Why should Chrysler open up shop in Texas, when the infrastructure, workforce and the final assembly plants are nearby?

            Your precious hedge funds are a larger contributor in bankrupting private companies.

          • JoeMN

            Does this include Hostess ?

            http://www.cnbc.com/id/49853653/How_Hostess_Failed_Hedge_Funds_vs_Unions

            This is not the first time Hostess Brands has entered bankruptcy.
            Weighed down by an balance sheet heavy with debt and pension
            obligations, costly labor rules, and declining sales, the company sought
            bankruptcy protection under Chapter 11 in 2004.

            After nearly
            five years in bankruptcy, Hostess emerged in 2009 under the control of a
            private equity firm called Ripplewood Holdings, which invested $130
            million of new capital in the company. The keys to coming out of the
            bankruptcy the first time around were concessions by the two groups most
            responsible for Hostess falling back into bankruptcy just 3 years late:
            the unions and lenders that owned secured company debt nominally worth
            around $450 million.

            In the deal that allowed Hostess to come out
            of bankruptcy, the unions agreed to concessions that would save the
            company around $110 million a year in labor costs. The lenders, led by
            the hedge funds Silver Point and Monarch, agreed to provide a new
            secured loan of $360 million, forgive half the existing debt, and
            exchange the rest of that debt for a payment-in-kind loan.
            _____
            If it weren’t for those ” hedgies”, Hostess would have been gone in 2004.

          • Anon

            And those same hedgies raided the company’s pension plan while giving themselves big bonsues. http://online.wsj.com/article/SB10001424052702304072004577323993512506050.html

          • JoeMN
          • ellinas1

            The hedgies.

  • whowon

    Remember when the fools and liars in the media said Romney’s claim about Jeeps being made in China was a lie? Fiat (FIA.MI) and its U.S. unit Chrysler expect to roll out at least 100,000 Jeeps in China when production starts in 2014 as they seek to catch up with rivals in the world’s biggest car market. …

    “We expect production of around 100,000 Jeeps per year which is expandable to 200,000,” [Chrysler CEO Sergio] Marchionne, who is also CEO of Chrysler, said on the sidelines of a conference, adding production could start in 18 months. Where is Ed Schultz now or is he Ellinas2.

    • WOOF

      whowon and Romney , still wrong

      “I saw a story today that one of the great manufacturers in this
      state, Jeep, now owned by the Italians, is thinking of moving all
      production to China,”

    • ellinas1

      Do you expect a multinational company to not enter the Chinese market?
      Wow!

      • Spartacus

        So you and the rest of your liberal friends were wrong back during the Bush years when you cried and blamed Bush for multinational companies entering the Chinese market and taking jobs over there?

        • ellinas1

          My position is explained thus: During the Clinton and Bush years the companies that went overseas were and still are shipping completed products back to the USA. To this I am opposed.

          If however a multinational set’s up shop in China, makes products for the Chinese market and ships nothing to The USA, I am all for it.

          So far it appears that Chrysler and Chevrolet will not be shipping finished products to the USA.
          If and when they do, my liberal friends and I, will cry and blame Bush for the multinational companies entering the Chinese market and taking jobs over there.

      • ‘Tom Crawford

        I think mainly the biggest bitch is that they go through bankruptcy, get bailed out by taxpayer monies, and nearly the first thing done is look at investing in foreign markets and foreign jobs – it is like a finger in the eye of those that bailed them out.

  • whowon

    Amid the controversy over Chrysler’s “It’s Halftime In America” Super Bowl commercial, a glaring question remains: if Chrysler is back on top and so strong, then why hasn’t it repaid taxpayers the $1.3 billion it still owes them?

    • TimmyG

      “if Chrysler is back on top and so strong, then why hasn’t it repaid taxpayers the $1.3 billion it still owes them?”

      Because dem/libs don’t pay back, they just take.

      • banjo kid

        the first loan was paid back by the employees taking a 4 dollar cut in pay and it was paid back. the new one is in the CEO’s back pocket so do not expect payment any time soon.

    • two_amber_lamps

      Crony Capitalism… naw, it’s your $$$ Chrysler! It’s a gimme! No worries!

    • ‘Tom Crawford

      Chrysler already has…I can get you exact date if need be.

      • whowon

        One of the year’s biggest lies Tom.

        • ‘Tom Crawford

          Chrysler: repaid $9.2 billion, fulfilling its debt obligations to the U.S. and Canadian governments, and is now owned by Italian automaker Fiat (58.5%) and a health care trust for UAW retirees (41.5%). Overall, taxpayers lost $1.3 billion on the Chrysler bailout. In full recovery mode, Chrysler is currently the fastest-growing carmaker in the world.

          http://www.forbes.com/sites/joannmuller/2012/08/29/automakers-report-card-who-still-owes-taxpayers-money-the-answer-might-surprise-you/2/

          • whowon

            Despite Obama’s efforts to sell Chrysler as an American brand, the company is actually owned by the Italian Fiat and American taxpayers lost big for the government’s decision to bail them out four years ago.

            a health care trust for UAW retirees (41.5%). Overall, taxpayers lost $1.3 billion on the Chrysler bailout. Miss that part in your post Tom? Chrysler is a private company and is not listed on the Stock Exchange. The old Chrysler stock is worthless. Not to mention GM.

          • ‘Tom Crawford

            Actually no, I didn’t miss that in my post, as you can see if you read it its right there along with the link. Your snark aside, debt obligations according to Forbes has been discharged, along with the bankruptcy from what it looks like the government got back what it could and the rest was written off with bankruptcy. Most likely a base line amount to be repaid. Yes, well aware of chysler owned by fiat.

            Fiat owns 58.5% of Chrysler and has offered to buy another 6.6% from the UAW Retiree Medical Benefits Trust, which owns the remainder of Chrysler.

            As for who owned before was a german based company diamler-benz.

            It isnt as if they havent had foreign ownership before.

            There is a push to have chrysler traded on the open market again, but also in the background it looks like Fiat wants to merge all of Chrysler and Fiat into one company.

          • ‘Tom Crawford

            and by the by, Jeep, a product now of Chrysler hasn’t been truly American Made since it was made by AMC (American Motor Corp) and bought by Chrysler back in 1987. Miss Jeep being AMC.

          • banjo kid

            down Mexico way .

      • ‘Tom Crawford

        The rest was written off by the government.

        “When Chrysler filed for bankruptcy on April 30, 2009, the “new Chrysler” that emerged assumed only some of the $4 billion loaned by the Bush administration. In a new report issued last month, the GAO explained that Treasury — under the Obama administration — “wrote off $1.6 billion” of the “original $4 billion loan extended to the old Chrysler.””

    • banjo kid

      They like GM are greedy and it is management that is the greedy ones . Unions also see post below sorry about that .

      • ‘Tom Crawford

        Really? and you dont think the Unions had anything to do with the problems of the auto industry?

        • banjo kid

          they are guilty also they went to far in representing the people and wanted to much, to much wage and to much benefits that can not be paid . The history of the unions show that it was needed and it is stilll needed but at less and less they need to back off .

          • ‘Tom Crawford

            Agreed. There WAS a time for unions, and in certain spots I would say there might still be, but the corruption of the unions and the drain on the companies by making more and more demands and not willing to compromise helped put business’s out of business. Not saying these companies don’t bear part of the blame, but unions do as well.

          • ‘Tom Crawford

            I guess you could do a comparison between government and union leadership and see alot of similarities with the corruption of power and who they really out to serve…. their own interests. Unions, like the government, is there to protect the worker / citizen, and we see the opposite of that happening more and more as time goes by….it is amazing how similar these two entities are…..

  • whowon
  • whowon

    The video the poodle will never watch. http://www.youtube.com/watch?v=Lvl5Gan69Wo

    • WOOF

      I watched GM builds cars all over the world . Multinationalsd and Communist Chinese share the same hookers. See you at the Occupy camps

  • Truther

    Chrysler’s Marchionne to Get Shares Worth $3.99M
    Fri, 12/07/2012 – 6:55pm
    The Associated Press
    Get today’s design engineering headlines and news – Sign up now!
    Chrysler Chairman and CEO Sergio Marchionne will get stock in the company valued at $3.99 million for more than three years of work on the board, Chrysler disclosed Friday.
    Since Marchionne doesn’t want any compensation for his work at Chrysler, the shares will go into an escrow account that he won’t be able to access until he leaves the board or for 10 years, whichever comes first, Chrysler said in a filing with the U.S. Securities and Exchange Commission.
    Marchionne, who also is CEO of Italy’s Fiat Group SpA, Chrysler’s majority owner, will get 499,478 shares, just like the company’s other eight board members. The other board members have chosen not to cash in their stock, but Marchionne must under the terms of Chrysler’s 2009 U.S. government bailout, the company said. The shares will instead go into the escrow account, the filing said.
    Chrysler now values its shares at $7.99 each, although that could change, according to the SEC filing.
    Marchionne has continually refused to take a salary as CEO of Chrysler, although his compensation from Fiat and its industrial arm was $22.2 million last year. Most of that was in stock options.
    The company announced Wednesday that it would set up a $38.2 million charitable foundation to honor Marchionne. The board will spend the money during the next five years. The cash initially will go to educate children of Chrysler employees, but it also will support other charitable causes, the company said.
    Marchionne is widely credited with saving Chrysler after its 2009 bankruptcy. The Auburn Hills, Mich., automaker has gone from nearly running out of cash in 2008 to posting $1.29 billion in net profits through September of this year. Sales in the key U.S. market are up 22 percent through November. Marchionne has integrated many Fiat and Chrysler operations, sharing engines and other technology.
    Chrysler is now a privately held company that’s 58.5 percent owned by Fiat. The company could do an initial public stock offering next year.

  • Waski_the_Squirrel

    While I’m a big fan of “right to work,” I also know that an anecdote is not a trend. I actually don’t even care what it does for the economy. To me, the important thing about “right to work” is freedom.

    One of the reasons I teach in North Dakota and not the eastern state I come from is that back east I would have been forced to join the teachers’ union as a condition of employment and to take part in their labor actions. Here I’m free to stay out and I’m not forced to take part in union actions.

    • ‘Tom Crawford

      I am a fan of right to work – ever since contracting to ATT and having to pay union dues on certain sites I worked at ….just so I could work there. In return I got nothing, the right to work. It felt like paying “protection”. I had no union representation nor any benefits those in the union would get with their dues being paid…I have a big problem with that.

      Second was my mother worked for the state, inspections and running lab work – due to poor ventilation she had to quit or be put on a ventilator while working due to the poor ventilation and the work she had done. Due to the job, it turned her lungs to paper, she gets around any smoke, colognes, ect and it will send her into coughing fits and she can barely breathe – she takes breathing treatments from a nebulizer so she can breathe better. State did everything they could to screw her and the union was no help, not even with paperwork, and certainly not with representation.

      My view of unions may be jaded wit my experiences, but now days I believe the unions are out for themselves, and the higher ups padding their pockets while the workers get screwed.

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