The repeal of Right to Work in Michigan will have significant impacts on the state’s business environment. While the repeal may not have a major impact on current Michigan-based businesses, it will make the state less attractive to global businesses looking to expand or relocate.
During the decade when Right to Work was in place, Michigan experienced growth in new companies, expansion of existing companies, and an increase in the number of companies moving to the state. Right to Work was a key factor that kept Michigan on the radar for site selectors.
Without Right to Work, Michigan will need to find more costly methods to attract economic development opportunities, such as offering upfront cash, deeper utility company discounts, and longer tax abatements. The inconsistency in policy from one administration to the next is another issue that will negatively impact Michigan’s business environment. The repeal of Right to Work breaks down businesses’ expectations of consistency and may deter companies from choosing to locate or expand in Michigan.
The lack of continuity in business policies continues to present a challenge for Michigan and may influence businesses’ decisions to stay in or come to the state. In order for Michigan to remain competitive and attract new businesses, it is important for policymakers to find ways to provide stability and consistency in their policies.