In a highly anticipated move, on March 24, 2023, Governor Gretchen Whitmer of Michigan signed a repeal of the state’s 2012 so-called “Right-to-Work” legislation. The repeal had long been a stated goal of democrats in the state legislature. After both houses of the state legislature changed to democratic control following the 2022 election, the democratic majorities and governor made good on the promise.
In 2021, a republican legislature passed Michigan’s Right-To-Work law. The law prohibits the inclusion of “union security” clauses in collective bargaining agreements. Union security clauses require employees to become union members and pay union dues. The Right-To-Work legislation permitted Michigan employees in unionized workplaces to refrain from joining the union and/or paying union dues. But, because federal law, namely the National Labor Relations Act, requires unions to continue to represent all employees in a bargaining unit, the effect of the Right-To-Work law was to allow non-union employees to enjoy the benefits of union representation without the burden paying dues. To no surprise, unions disfavored the Right-To-Work statute because it denied them resources. The unions strongly opposed the legislation’s enactment.
Interestingly, despite their fervent opposition to the Right-To-Work legislation, unions did find ways to use the law to their advantage in some circumstances. For example, during union organizing campaigns, unions used the law to convince reluctant employees to vote in favor of unionizing by informing those employees that they would not be required to pay dues and could opt out of such payments once the union is elected. In the circumstance of an election, the ironic outcome of the Right-To-Work law was that it provided unions with a campaign tool, while robbing employers of the counter argument that employees should vote against unionization because payment of dues would cut into their wages.
Regardless of its potential use in union campaign strategy, the Right-To-Work law in general was not helpful to unions because it undermined their resources and membership. The new legislation signed by Governor Whitmer just a few weeks ago repeals the Right-To-Work legislation entirely.
The practical implication of the repeal is that once it goes into effect in March 2024, any negotiations for new collective bargaining agreements will certainly include union security clauses as a subject of bargaining. In some cases, and anticipation that the Right-to-Work law might be repealed in the future, unions have already negotiated for the inclusion of union security clauses in collective bargaining agreements. Those agreements include a union security clause that springs into effect in the event the Right-to-Work law is repealed. Some speculate that the repeal of Right-To-Work in Michigan may also lead to increased organizing activity because the possibility of having a union security clause increases the financial incentive for such campaigns.
Michigan is a state with an active and historic union presence especially in the manufacturing industry. As a result, the manufacturing industry, in particular, may see the most impact from this law. Manufacturing employers in Michigan with unionized facilities should review their contracts to determine whether they contain any union security clauses that may become operative once the repeal goes into effect. Such employers should also consider the expiration of their collective bargaining agreements to determine whether they expire prior to or after the repeal’s effective date, as that timing will impact whether a union security clause will be a subject of bargaining during negotiations for a new contract.
Employers with non-unionized facilities should keep an eye out for potential organizing activity as invigorated unions seek to expand their footprint. Non-Michigan manufacturing employers in Right-To-Work states should look to Michigan as a potential harbinger of change in their state if the state legislature is inclined to follow Michigan’s lead.
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