Colorado Marks Labor Day with Campaign to Promote Labor Law Awareness

DENVER, Sept. 3, 2015 /PRNewswire/ -- This month, Colorado is working to raise awareness about its unique labor regulations and clarify misperceptions of the state's business and work environment.

Political and business leaders have initiated a proactive campaign to highlight the state as the only modified right-to-work state in the country, and to persuade the National Right to Work Committee (NRTWC) to change its classification of Colorado as a forced-unionism state, specifically on its website www.nrtwc.org.   

"One of the first criteria a company uses to evaluate a location for investment is to determine whether a state is right-to-work or union shop," said Tom Clark, chief executive officer of the Metro Denver Economic Development Corporation. "We've heard from executives that due to the hybrid nature of Colorado's labor law as a modified right-to-work state, that it often is misconstrued by business decision makers as a union state, which is, unfortunately, an inaccurate characterization of Colorado's hybrid labor law."

Currently, there are 25 states that have adopted right-to-work laws, with Wisconsin being the most recent. Those in favor of right-to-work laws say that it is more attractive to business, as states with such labor law generally have lower unemployment rates and faster job growth—but oftentimes lower wages—while opponents claim that organized labor provides higher wages and stronger benefits for employees.

Colorado's labor law is a legislative model unlike any other state in the country, as it creates an environment where the state is neither right-to-work nor union shop. Employees can obligate themselves to pay union dues if they choose to, but unlike union shop states, where negotiations after a single election can result in an obligation to pay union dues, the Colorado Labor Peace Act requires two votes.

The first is a "vote-to-have-a-vote" and requires an affirmative vote from 50 percent, plus one of the employees within the company. If the required votes are attained, the second vote (to have mandatory union dues) requires a 75 percent majority. If the vote is successful at that point, all employees must pay union dues and belong to the union, at least as financial core members.

"This unique requirement has created a labor climate in Colorado that has produced one of the nation's most robust economies," said Bradley Kafka, the vice chair of the labor and employment practice group at the Polsinelli law firm. "Research indicates that Colorado's job creation since the Great Recession far exceeds both union shop states and right-to-work states."

Colorado has seen a rapid rise in its economic growth, including dozens of recent corporate headquarters moving to the area and an influx of young talent who want to take advantage of the job opportunities and tremendous lifestyle found in the state.

"Colorado has clearly become one of the leading choices considered for both domestic and international operations for business," said Tom Clark, chief executive officer of the Metro Denver Economic Development Corporation.  "To continue this growth trajectory, it is imperative that Colorado business leaders proactively educate and address the misperceptions around the state's showpiece labor relations law."

To learn more about Colorado's Labor Peace Act, you can read the legislation in its entirety here: https://www.colorado.gov/pacific/sites/default/files/Labor%20Peace%20Act.pdf.

SOURCE Metro Denver Economic Development Corporation