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Indiana Passes Anti-Union ‘Right to Work’ Bill

(Reuters) – The Indiana state Senate on Wednesday gave final approval to a new law allowing workers at unionized businesses to avoid paying union dues, the last major legislative hurdle to making Indiana the first “right-to-work” state in the nation’s manufacturing belt.

No state has approved a right-to-work law since Oklahoma a decade ago, and Indiana is being closely watched nationwide during a presidential election year. The Senate vote was 28 to 22.

Governor Mitch Daniels was expected to sign the bill Wednesday.

Sad day for organized labor.

Michigan House Passes Anti-Union Labor Bill

Lansing— A House committee on Tuesday passed a package of labor reform bills blasted by critics as anti-union measures.

The legislation would add county and municipal employees to the law that prohibits public school teachers from striking and set steep fines for public sector strikes and lockouts.

The bills also would make it easier for employers to get an injunction to stop picketing and require employers to get annual permission from employees to deduct union dues from their paychecks.

The package approved by the House Oversight, Reform and Ethics Committee, chaired by Rep. Tom McMillin, R-Rochester Hills, would have to be passed by the full House and Senate and be signed into law by Gov. Rick Snyder.

An overflow room equipped with a large TV screen was set up next to the hearing room in the House Office Building in Lansing to accommodate the large number of union members who attended today’s meeting.

“This is an unwarranted assault on working people,” said Jerry Skinner of Farmington Hills, a retired electrician and member of the International Brotherhood of Electrical Workers Local 58, who attended the meeting. “They’re doing it in Indiana and they’re doing it here. We’ll be telling them what we think in November.”

The package is supported by Republicans and business owners who say reforms are necessary to limit the cost and disruption of strikes.

GM to Boost Volt Production

General Motors Co. plans to boost production for its range-extending electric car, the Chevrolet Volt, to 16,000 vehicles this year, and 60,000 in 2012, the company said today.

The Detroit carmaker had originally planned to build 15,000 Volts this year, and 45,000 in 2012, but strong demand for the battery-powered car has prompted the company to churn out more.

The announcement comes just two weeks before a four-week shutdown at its Detroit-Hamtramck plant, where GM builds the Volt, for retooling.

Conn. Powerhouse Explosion Kills 5

Fire marshals on Monday were preparing to start their investigation into a massive explosion that rocked an under-construction power plant where gas lines were being tested, killing at least five people.

A dozen or more others were hurt in Sunday’s blast, which was so powerful it alarmed residents who heard the boom and felt tremors in their homes miles away from the Kleen Energy Systems plant in Middletown, about 20 miles south of Hartford.

The explosion left huge pieces of metal that once encased the plant peeling off its sides. A large swath of the structure was blackened and surrounded by debris, but the building, its roof and its two smokestacks were still standing at the site, which is near Wesleyan University on a wooded and hilly 137-acre parcel of land overlooking the Connecticut River.

The Kleen Energy plant is seen in this aerial photo after an explosion in Middletown, Conn., Sunday, Feb. 7, 2010. (AP Photo/Jessica Hill)

The nearly completed 620-megawatt plant is being built to produce energy primarily using natural gas, which accounts for about a fifth of the nation’s electricity. Workers for the construction company, O&G Industries, were purging a gas line, clearing it of air, when the explosion occurred around 11:15 a.m. Sunday, Santostefano said.

About 50 to 60 people were in the area at the time, he said.

Kleen Energy Systems LLC began construction on the plant in February 2008. It had signed a deal with Connecticut Light and Power for the electricity produced by the plant, which was scheduled to be completed by mid-2010 and would be one of the biggest built in New England in the last few years.

The Truth About Union Electricians in IBEW Local 58.

Can Detroit Be Saved?

Dave Bing has just signed on to four years of maybe the most futile and thankless job in America: mayor of Detroit. What in the world was he thinking?

“I wouldn’t have taken this job if this wasn’t doable,” he says. “I finished basketball in 1978, then went into my own business in 1980 and did it for 29 years. . . . Now I get to the end of that career and probably should have retired. But there was a calling greater than anything that I ever envisioned, and that was to help bring this city back.”

In November, 57% of the Detroit voters bought into his tough-love reform agenda. Mr. Bing replaced the disgraced Kwame Kilpatrick, who went to jail earlier this year for spending city funds on his girlfriends—just the publicity boost the city already flat on its back didn’t need.

Dave Bing is no Milton Friedman when it comes to economic solutions. He’s praying for lots of federal aid to help the city pull out of its ditch, he wants to borrow against future tax revenues, and he hasn’t ruled out tax increases “if they have a sunset” to pay the city’s bills. He believes it’s a core responsibility of government to help people.

Yet Mr. Bing is a realist, something Detroit hasn’t had at the helm for a long time. “We’ve been paralyzed by a culture in the city of Detroit, and maybe the state of Michigan, of entitlement,” by which he means ever-rising union wages. “Our people, I don’t believe, truly understand how dire the situation is. There are ugly decisions that need to be made and I’m surely not going to be popular for making them. But I didn’t take this job based on popularity.”

One group that surely isn’t a fan is the public employee unions. He grumbles that there are 17 unions with over 50 separate bargaining units. “I can give you a data sheet that will show you we’ve got several of those bargaining units with less than 100 people, and each one of them has a president that’s paid by the city to negotiate against the city,” he says. “Coming from the private sector, I find that insane.”

The mayor is quick to remind me that he is not antiunion. He joined the NBA players association in the late 1960s and hired a mostly unionized workforce at his firm, Bing Steel. But for months he has been locked in tedious negotiations and the aggravation is starting to show.

“The problem for the most part,” he argues, “is poor union leadership. I think the rank-and-file aren’t being told the truth. And I’m not going to B.S. anybody. I’m going to tell them the truth. They can’t continue to ride this gravy train forever.”

He poses this question to the city workforce: “Are you better off having a job and making 90% of what you’re at today or having no job at all? To me, you don’t have to be a brain surgeon to say I’ll take that 90%.”

Could Detroit be the first major city in America to actually declare bankruptcy, I ask hesitantly. His honesty surprises me: “I hope not, but I wouldn’t rule it out if we don’t get concessions from the unions.” He may be using the threat of bankruptcy, which is a poison pill for unions, as a bargaining chip. “This would void all the city contracts,” he insists. “That means workers have to make a decision: Do you want to start with zero, or do you want to start from where you are and give up just a little bit? Under bankruptcy you start with zero.” Mr. Bing is a hardliner.

“We have to be honest with ourselves and say we’re no longer going to be the motor capital or the manufacturing capital of the world,” Mr. Bing says. “But I think we can be the entertainment capital of the Midwest. We have casinos, great hotel accommodations, great restaurants, we’re one of the few cities that has every professional sports team.