13 December 2012, the governor of Michigan has signed into law their Right to Work act.  Recently there were claims that between 2001 and 2011 states with Right to Work laws saw an increase in pay, however that’s misleading.

Take for example Idaho.  The Gem State passed its Right to Work laws back in 1985.  The result was a crash in employee pay and benefits, not an increase.  But, since 2001 overall starting pay has gone up slightly, mainly because mandated minimum wage went up, not because of any Right to Work law!

I’ve talked to southeast Idahoans who began their adult lives working at jobs that started out between $11.00 to $15.00 per hour, plus benefits, and this was in the 1970s!  Now the average starting pay, in the same area of Idaho, is minimum wage ($7.50 per hour in Idaho) with no benefits!

According to researchers Stephen C. Cooke and Barathkumar A. Kulandaisamy, Idaho’s average wages, for 2009, were $10,700 below the national average!  Also, contrary to what supporters of Right to Work laws say, Idaho’s employment growth is being driven purely by its population growth, not any Right to Work law!  In fact, when you look at government data, it’s the population growth that’s saving Idaho from a full blown depression (one driver of the population growth are people retiring in other states and moving into Idaho)!

The researchers used data from the U.S. Census Bureau/Labor Statistics, data collected from 1971 to 2007.  The official government data backs up what the native Idahoans, now in their 50s, 60s and 70s, have told me: The economic situation for the working class has stagnated or gotten worse!

From 1971 to 2007 the median wage in Idaho has dropped by $6,445!  Median year over year wage growth rate in Idaho is negative 0.3%!  The number of college educated workers in Idaho is a negative 3.4%!  Right to Work has done nothing to create high skilled/high paying jobs, getting a big fat 0% in that category!

Cooke and Kulandaisamy added that Idaho’s “…cost of living only exacerbates wage differences.”

To contrast; Colorado is not a Right to Work state, here’s what the researchers had to say: “…Colorado appears to have made the transition from a low-skill to a high-skill equilibrium economy; Idaho…..have not. In particular, we posit that Idaho has a low-skill, low-wage problem.”

Even when you look at high skill/high wage jobs in Idaho, they still pay as much as $19,000 per year less than the national average!

Cooke and Kulandaisamy concluded that the reason why states, specifically Idaho, get stuck with low paying jobs is because state leaders refuse to invest in creating high skill industries. And, the decline in college educated workers is because state leaders refuse to invest in higher education.

The christian leadership of Idaho pushed Right to Work laws as a way of attracting lots of companies to do business in Idaho, including high skill jobs.  Well, after 27 years it’s obvious that right wing christian theory is a failure.

Most of those Idahoans I talked to, in their 50s, 60s and 70s, are still working (at places like Walmart), because they experienced such a huge decline in their pay and benefits, and there’s been such an increase in the cost of living here, that they can not afford to retire!

What about the claims that prosperity has increased in Right to Work states?  Of course it has, but not for the working class, the prosperity is being hoarded by a tiny minority who’re the ones truly benefiting from the Right to Work laws.