Wisconsin Governor Scott Walker’s highly controversial plan to rein in public employee unions is still tied up in the courts. But one reason fellow governors are watching Wisconsin so closely — beyond the bare-knuckled politics — is Walker’s claim that, among other things, the plan would mean Wisconsin is “open for business.”
But do weakened labor protections make a state better for business? The evidence is mixed.
In the Workforce category of America’s Top States for Business, we do reward so-called “right to work” states, as well as states with a lower percentage of union members. That’s because while unions would argue their members are more productive and do higher quality work, few businesses see unions as a selling point when deciding where to invest.
But “Workforce” is but one of our ten overall categories of competitiveness, and a strong finish here doesn’t guarantee a top ranking overall. Look at Florida. With weak unions and an abundance of available workers
, Florida boasted America’s top workforce in last year’s rankings. But the Sunshine State finished 28th overall, hobbled by a weak economy, high costs, and a substandard education system.