The repeal of the Right to Work law in Michigan will have significant implications for businesses in the state. While the law was in place, it played a major role in the growth of new companies, expansion of existing companies, and the attraction of businesses from around the world. Right to Work was a key factor in keeping Michigan at the top of the list for site selectors.
For businesses already based in Michigan, the repeal may not change much. However, it will have a significant impact on global businesses considering expanding or relocating to the state. Without Right to Work, Michigan will need to employ more costly methods to attract economic development opportunities, such as offering upfront cash, deeper utility discounts, and longer tax abatements.
The inconsistency in policy from one administration to the next is also a concern for Michigan’s pro-growth environment. The repeal of Right to Work breaks down businesses’ expectations of consistency and may make it more challenging to do business in Michigan. The lack of continuity in business policies will continue to be a challenge for the state and will influence businesses’ decisions to either stay in or come to Michigan.