“Right to Work” is wrong for North Carolina

Data and analysis adapted from the Economic Policy Institute’s (EPI) extensive body of research on right-to-work laws, especially their work on the impact of RTW on state economies, on unions reducing inequities and strengthening democracy, on RTW in Montana, and on obstacles standing in the way of unionization. 

So-called “right-to-work” (RTW) laws have existed in North Carolina since 1947. But NC policymakers are pushing a constitutional amendment that, if passed on the ballot by North Carolinians, would codify RTW into the state constitution, making it more difficult to remove these anti-worker laws and further consolidating power for corporations. 

Despite the misleading name, RTW laws do not guarantee workers a job. Instead, they weaken workers’ ability to come together, build power, and bargain for better wages, benefits, and working conditions. In turn, they give corporations the ability to extract a larger share of the value that workers create. 

If the amendment is placed on the ballot in November, North Carolinians must stand up against RTW and affirm a NC that puts people over profits. 

RTW laws undermine unions  

Unions are organizations of workers who join together to improve their wages and working conditions and to have a democratic say in the structure of their workplace. Once a union is legally recognized, employers are required by law to negotiate with the union in good faith, and the terms that they agree to constitute a legally binding contract.  

But navigating the bargaining process and enforcing the contract can be costly, so it’s typical for unions to charge dues so that all employees benefiting from the contract pay their fair share in covering the costs of maintaining the union and securing the benefits. RTW laws make it illegal to require all workers benefiting from the contract to join the union and pay dues. 

This means that workers are able to receive all the benefits of the contract without joining the union or paying their fair share, incentivizing workers to free ride. As a result, unions have fewer resources to represent workers, are more financially vulnerable, and the union is more likely to struggle to sustain itself.  

That’s not to say that unions are unable to function or secure big wins for their members in RTW states. Just as good outcomes are still possible in underfunded schools through the dedication of hard-working teachers and staff, unions in RTW states can build power and achieve big wins through the dedicated organizing work of the rank-and-file and union leaders. But just as a lack of funding makes it more difficult for a school to function effectively, RTW laws do make it much more difficult for unions to operate and sustain themselves.  

This is what we see in the data: Of the 27 states with less than 10 percent union representation, 24 have RTW laws. Of the 23 states with more than 10 percent union representation, only 2 have RTW laws. Moreover, those RTW states that have higher levels of union representation tend to be states that have only recently passed RTW laws since 2010, after a long period where no new states adopted RTW. 

As discussed below, we know that states with higher unionization have better outcomes. In contrast, NC has the lowest unionization rate in the country, and it is not a coincidence that NC is also ranked the worst state for working families. 

Unions empower workers and deliver the goods 

Workers are the union, so what the union makes a priority is ultimately up to the workers. But in general, the benefits of joining a union can be quite far-reaching and can include: 

• Living wages: Starting salaries that constitute a living wage, with annual cost-of-living adjustments (COLAs) 

• Equitable wages: Equitable pay for all employees, based on clearly defined criteria such as education, demonstrated skills, levels of responsibility, and years of experience 

• Robust benefits: Robust health care, retirement, paid time off (PTO) benefits, and sick leave 

• “Just cause” rights: Worker protections against unfair treatment and dismissals through formalizing disciplinary procedures and ensuring union representation for employees at disciplinary hearings 

• Democratic say: Workers having a say in the organization of their workplace and expectations and processes, including things like scheduling, expectations of availability, deadlines, flexibility, training, and even basic safety 

Extensive research confirms the benefits that unions offer. For example: 

• Higher wages: Workers covered by a union contract earn 14 percent more in wages on average than their non-unionized counterparts 

• Greater pay equity: Black workers covered by a union contract earn 15 percent more than their non-unionized Black sectoral counterparts; Latine workers earn 18 percent more; women earn 10 percent more; and so there is greater pay equity among workers covered by a union contract 

• Better benefits: Union employers contribute more to worker benefits than comparable non-union employers: They pay 77 percent more in health insurance benefits, 11 percent more in paid time off, and 28 percent more in retirement benefits 

By eroding the power of unions, RTW laws are undermining workers, the very people who power the economy. RTW laws are anti-worker laws. 

RTW laws do not increase employment or benefit the economy 

RTW laws were never intended to benefit workers. They originated in the Jim Crow South as a way to subvert the growth of unions, divide Black and white workers, and maintain the political dominance of wealthy white plantation owners and industrialists.  

Unsurprisingly, workers in RTW states earn less and receive worse benefits on average than workers in non-RTW states. This is not just lower pay and worse benefits for unionized workers — that’s lower pay and worse benefits for all workers. This is because when unions negotiate better wages and benefits for their members, competitor employers have to offer better compensation to attract and retain the workers they need.

This impacts the economy. When workers earn less, there is less consumer demand and local economies suffer.  

It doesn’t stop there. Despite claims by proponents, RTW laws don’t increase employment. 

Then what do these laws do, why have they been in effect for so long, and why are lawmakers interested in codifying them into the state constitution now? 

RTW laws are a way of consolidating corporate power 

What RTW laws do is consolidate corporate power. By eroding unions, RTW laws diminish wages and benefits and make it more difficult for workers to have a say in the structure of their workplace. This means that these anti-worker laws enable corporations and their wealthy shareholders to accumulate more of what we collectively create.  

Data shows that as union membership has declined since the 1950s — in part because of the proliferation of RTW laws and anti-union policies — more and more income goes to the ultra-wealthy.

The move to codify RTW in the state constitution is a way to further consolidate the power of corporations at the expense of working people. So, if we want a state that enables all North Carolinians to earn a living wage, live with dignity, and have the freedom to thrive, we must reject this corporate power grab. Just as North Carolinians rejected the attempt to codify RTW into the state constitution in 2013, we must do so again in 2026 if it is placed on the ballot. 

The NC Budget & Tax Center is a proudly unionized workplace, and we stand in solidarity with all working people as we work to build an economy and state where all North Carolinians can reach their full potential and live full, meaningful lives.