The repeal of Right to Work in Michigan has significant implications for the state’s business environment. During the past decade, when Right to Work was in place, Michigan experienced tremendous growth in new companies, expansions of existing companies and an increase in companies moving to the state. Right to Work played a crucial role in keeping Michigan on the radar for site selectors.
However, with the repeal of Right to Work, Michigan will become less attractive to global businesses looking to expand or relocate. Without this key factor, the state will need to find more expensive methods to attract economic development opportunities. These methods may include offering upfront cash, deeper utility company discounts and longer tax abatements.
Another challenge that Michigan’s business environment faces is the inconsistency in policy from one administration to the next. The repeal of Right to Work breaks down businesses’ expectations of consistency and may deter them from choosing to locate or expand in Michigan. The lack of continuity in business policies continues to present a challenge for Michigan and may influence businesses’ decisions to stay in or come to the state.