It is nearly impossible to calculate the positive economic impact Toyota Motor Manufacturing of Kentucky has had on our state.
Many of us know someone who works directly for Toyota or one of its providers. That can be measured and has been. But how many millions of dollars repeatedly flood our regional economy because of the ripples caused by people who serve food, clean up for, provide paper and technology equipment, temporary and permanent housing and hundreds of other products and services to people who provide even the most mundane services to help Toyota put cars on the road?
Again, it is nearly impossible to calculate.
So why would we consciously do anything to jeopardize all of that? Clearly, we wouldn't. But the same bad result could come about if a bill before the Kentucky General Assembly is killed by the big labor unions.
House Bill 38, filed by Rep. Stan Lee (R-Lexington), would simply allow employees of union shops to opt out of union membership. This is called Right To Work and it is the law in 23 states.
The United Auto Workers has been battling against the majority of Toyota's 7000 Georgetown workers who have consistently resisted unionization since 1988. They claim to be gaining support, though that seems hard to believe. But here is the rub: if barely half of the Toyota workforce did vote to allow the union in, then all the workers would be forced to join the union and pay dues or they could lose their jobs. That is one of the reasons we need Right To Work in Kentucky.
We already have enough difficulty bringing in industrial jobs. But our vitality depends heavily on housing and serving many of the people who work in those jobs. As union membership dwindles in the Rust Belt, ferocious proselytizing for unions like the UAW has moved here and elsewhere in the south looking for new converts. They are finding precious few takers, but the efforts continue with greater urgency and wilder rhetoric. Union sycophants have even stooped to blaming mining accidents like the recent one in West Virginia on the declining influence of unions.
Toyota has one American plant in Fremont, California -- co-owned with General Motors -- that is a union shop. Does Kentucky want to risk putting the key to its economic engine into the hands of those unions who have pulled companies like General Motors and Ford to their knees?
The problem with the big American auto makers is not much more complicated than union benefits negotiated in less competitive times that now have a stranglehold over those companies as they become less able to soak up excess costs in a new business environment. These companies often can't make small personnel adjustments that could help them ride out temporary slowdowns. With defined-benefit pensions and rich lifetime-guaranteed health insurance plans piling billions of dollars in fixed costs on their balance sheets, American auto makers are watching Toyota eat their lunch in the marketplace.
Unions, it seems, are consumed beyond all reason with their own perpetuation, even as their parasitical nature becomes clear to most people. Their financial support for liberal causes and politicians only manages to decrease their appeal with the public.
And financial support for such causes is what this is all about.
Common sense Right to Work legislation risks the symbiotic relationship between union leaders and Democratic Party politicians. In Kentucky, House Speaker Jody Richards(D-Bowling Green) has been outspoken in his opposition to HB 38. Interestingly, some "conservative" Democrats have been silent on this key economic issue. Polling indicates that 74% of Kentuckians favor a Right to Work law here. Democrats have seen the clear choice between the economic interests of Kentuckians and the union leaders who finance their campaigns. Sadly, they seem to be taking the money and running with it.
Finally, a comparison tale of two states is informative. Tennessee and Kentucky have spent much of their existence sharing similar circumstances. Their trajectories have diverged, however, as Tennessee has offered its citizens the choice to not pay dues to labor unions. As recently as 1969, Kentucky was 44th in per capita disposable income and Tennessee was 42nd. Currently, Kentucky ranks 41st and Tennessee is up to 19th. How much longer do we need to wait before moving onto the right economic track?
At its heart, Right to Work really is about employee choice and employer choice. Employees should be able to work in a business without joining a labor union. The choice they have now is to go to work elsewhere. Companies who want their employees to have that same opportunity have a choice as well. Right now, it is just too easy for those companies to avoid Kentucky. Remembering that ripple effect caused by Toyota, wouldn't it make sense to do all we can to encourage large employers to come here? Providing Right to Work freedom is the least we can do.
