The repeal of Right to Work in Michigan has significant implications for the state’s business environment. During the time when Right to Work was in effect, Michigan experienced an increase in new companies, expansion of existing companies and an increase in the number of companies moving to the state. This law was a key factor that kept Michigan on the radar for site selectors.
While this repeal may not have a major impact on current Michigan-based businesses, it will make the state less attractive to global businesses looking to expand or relocate. Without Right to Work, Michigan will need to find alternative methods to attract economic development opportunities such as offering upfront cash, deeper utility company discounts and longer tax abatements.
Another issue that will negatively impact Michigan’s business environment is the inconsistency in policy from one administration to another. 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 presents a challenge for Michigan and may influence businesses’ decisions about staying or coming to the state.