April 30, 2024

Gathering Storm Over ‘Right to Work’ in Indiana

The thunderclouds are gathering first here in Indiana. The leaders of the Republican-controlled legislature say that when the legislative session opens on Wednesday, their No. 1 priority will be to push through a business-friendly piece of legislation known as a right-to-work law.

If Indiana enacts such a law — and its sponsors say they have the votes — it will give new momentum to those who have previously pushed such legislation in Maine, Michigan, Missouri and other states. New Hampshire’s Republican-controlled legislature was the last to pass a right-to-work bill in 2011, but it narrowly failed to muster the two-thirds majority needed to override a veto by the Democratic governor; an Indiana law would re-energize that effort.

Right-to-work laws prohibit union contracts at private-sector workplaces from requiring employees to pay any dues or other fees to the union. In states without such laws, workers at unionized workplaces generally have to pay such dues or fees. Many right-to-work supporters say it is morally wrong to force unwilling workers to contribute to unions, while opponents argue that it is wrong to allow “free riders” not to support the unions that represent them in negotiations and arbitrations.

Right-to-work is also a potent political symbol that carries serious financial consequences for unions. Corporations view such laws as an important sign that a state has policies friendly to business. Labor leaders say that allowing workers to opt out of paying any money to the union that represents them weakens unions’ finances, bargaining clout and political power.

Organized labor has vowed to fight the Indiana bill, which it says would turn the state into the “Mississippi of the Midwest.” If the legislation passes, Indiana would become the first state to have such a law within the traditional manufacturing belt, a union stronghold that stretches from the Midwest to New England. Right-to-work laws exist in 22 states, almost all in the South and West, with Oklahoma the most recent to pass one, in 2001.

Right-to-work supporters say they can win quick passage because Indiana’s Republican governor, Mitch Daniels, backs the bill and Republicans have large majorities in the House and Senate.

Democratic and union leaders say they hope to block the legislation, in part by flooding the statehouse with thousands of protesters — exactly as unions did last year in Wisconsin, Ohio and Indiana in an attempt to defeat legislation that limited bargaining rights for public-sector workers. Democratic lawmakers in Indiana have also hinted that they might once again flee to Illinois, as they did last year, to block votes on anti-union bills.

Indiana’s Republican leaders are eager to pass the bill — and end any related commotion — before Feb. 5, when the national spotlight turns to Indianapolis for the Super Bowl.

In heading the legislative push, Brian C. Bosma, the Republican speaker of the Indiana House, argues that not being right-to-work is a big handicap when Indiana competes for jobs.

“Local economic development officers testified that 25 to 50 percent of companies looking to create employment, whether through expansion or locating a new facility, just took Indiana and other non-right-to-work states off the table,” he said in an interview. “This is stopping employers from coming to Indiana. We need to deal with that.”

Kevin Brinegar, president of the Indiana Chamber of Commerce, praised the bill as a low-cost way to improve the business climate. “It’s not like we’re going to spend a billion dollars on tax incentives,” he said. “It’s free.”

But opponents say the talk of improving Indiana’s business climate is just a pretext.

“It’s a political attack on what the Republicans see as one of their main opponents — organized labor,” said Jim Robinson, the top United Steelworkers official in Indiana. “They want to weaken unions to help assure continued Republican majorities.”

Article source: http://www.nytimes.com/2012/01/03/business/gathering-storm-over-right-to-work-in-indiana.html?partner=rss&emc=rss

Saab Files for Liquidation

Saab and two subsidiaries filed with the District Court in Vanersborg, Sweden, according to a statement from Saab’s parent company, Swedish Automobile. The parent “does not expect to realize any value from its shares in Saab Automobile,” it said, “and will write off its interest in Saab Automobile completely.”

Viktor Muller, a Dutch entrepreneur who had previously been chief executive of a sportscar maker, Spyker, acquired Saab from G.M. in January 2010 for $74 million in cash and $326 million in preferred shares. But he was unable to obtain the financing he needed to modernize the Saab line-up at a time of global financial turmoil.

Mr. Muller’s efforts to keep the company afloat became increasingly desperate
after suppliers stopped extending credit last spring, forcing a halt to production at the company’s main plant, in Trollhattan, Sweden.

Saab’s unions began legal proceedings in September that could have led to the company’s liquidation, and Mr. Muller responded by voluntarily seeking court protection from creditors.

In a last bid for survival, Saab had been trying to arrange an infusion of cash from Chinese investors, including Zhejiang Youngman Lotus Automobile.

But General Motors, which retained an effective veto on any deal because it holds key Saab patents, refused to back the arrangement
, fearing it would “negatively impact G.M.’s existing relationships in China.”

Stefan Lofven, head of the I.F. Metall union, called in a statement for the government to help Saab workers find new jobs. He also called on Saab’s administrator to quickly arrange a sale of the company as a single unit, so as to keep it functioning as a coherent business.

However, despite a famously loyal group of customers, Saab has only reported a profit once in the last two decades, and the fact that all of the global automakers have ignored it suggests a different fate ahead. Analysts expect the company, which began selling cars in 1949, to be broken up and sold piecemeal.

“There’s not much left to salvage,” Anders Trapp, an auto industry analyst at S.E.B. in Stockholm, said, noting that Saab’s customer base had been dwindling as the problems grew. “Maybe the brand will continue in some form, but there’s not much left of it anymore.”

On Dec. 7, Guy Lofalk, the administrator appointed by the Swedish court to oversee the voluntary reorganization, said it was time to call a halt as there was no reason to think Saab could survive.

In its statement, Swedish Automobile said that Youngman, having considered G.M.’s position, “informed Saab Automobile that the funding to continue and complete the reorganization of Saab Automobile could not be concluded.”

“The board of Saab Automobile subsequently decided that the company, without further funding, will be insolvent, and that filing bankruptcy is in the best interests of its creditors,” it said. “It is expected that the court will approve of the filing and appoint receivers for Saab Automobile very shortly.”

In a text message Monday, Mr. Muller said he would hold a press conference “as soon as the court has ruled.”

Article source: http://feeds.nytimes.com/click.phdo?i=165ca19859b44c146c1e92ffe4fa6823