Gov. Mitch Daniels, on Feb. 1, 2012, signed into law a bill that makes Indiana the nation’s 23rd right-to-work state. Under the new law, individuals are neither required to become nor prohibited from becoming members of a union. The law makes it a Class A misdemeanor to require an individual to become or remain a member of a labor organization, or to pay dues, fees or other charges to a labor organization, as a condition of employment. The law also establishes a private right of action for violations, including the ability to obtain damages, civil penalties and attorneys’ fees.The law becomes effective immediately but does not abrogate existing collective bargaining agreements. The law extends to all contracts entered into, modified or renewed after March 14, 2012, but does not retrospectively invalidate existing union contracts. The law also does not apply to governmental employees or employees subject to the Railway Labor Act. Finally, the law does not prevent unions from collective bargaining or striking.   (Info from SHRM Feb 2012)Bottom line:  employees who work for an employer that is covered by a union contract, do NOT have to join or pay fees to the union.  Note, however, all employees are still confined by the prevailing labor contract, regardless of whether they pay the union a fee or not.  For example, pay scales are set and controlled by the contract.  All employees are treated the same.  Some say this is fair.  Some (myself) say treating every one the same is not fair.  Some employees deserve rewards that differentiate them from the good employees — either because of their exemplary performance or because of their inadequate performance.  I believe in performance based pay.  Treating everyone the same leads to mediocrity.  The exemplary employees move on to other organizations where they DO get rewarded.  Inadequate performers stay on and drag down productivity, morale and organizational effectiveness.

Welcome Indiana to the world of employee choice!