Your Chamber in Action

GOVERNMENT

With Right-to-Work on the Table, Governor’s Race Takes on New Importance

BY CLAYTON MEDFORD

Vice President of Government Relations, Northern Virginia Chamber of Commerce

Virginia’s status as a true right-towork state is being threatened. Although efforts to repeal the law have failed the past two legislative sessions, a recent move to erode it is advancing. Virginia’s business community must stand together and make our unwavering support for right-to-work known in the upcoming race for governor.

Right-to-work prohibits employees from being forced to join a union as a condition of employment. The law has survived recent attempts to repeal it, but is being slowly eroded through other legislation. The latest example of this is in the cannabis legalization bill.

In April, the Virginia General Assembly narrowly approved the legalization of recreational cannabis. The version of the approved bill had been amended by Gov. Ralph Northam in two key ways. First, recreational use and possession is legal as of July 1, while the bill the General Assembly had previously approved delayed that step, along with the rest of the bill, by several years. Second, new language was inserted into the bill that is seen by business leaders as eroding Virginia’s status as a right-to-work state.

The language in question would revoke a cannabis company’s license to do business in Virginia should the employer fail to “remain neutral” if its employees consider unionizing. This would appear to be in violation of federal law, which allows employers the same right as unions to make their case to employees regarding unionization. To be clear, employees are free to unionize in Virginia right now. However, you cannot condition employment on union membership; employees are free to join or not join with no consequences from their employer. This amendment would remove managers and owners from what would be a fundamental change in how their business operates. It would leave Virginia’s right-to-work law a hollow shell.

Why is this a big deal to Virginia’s economy? Virginia ranked number one on CNBC’s 2019 list of the Best States for Business. Four of the top five states on that list are right-to-work states, as are the states with which Virginia competes most closely for business relocations.

In addition, a 2019 survey of corporate executives found that fully 70% ranked right-to-work as important or very important for site selection. Finally, the Virginia Economic Development Partnership found that a repeal of right-to-work would cost the state $9 million to $25 million in general fund revenue and thousands of manufacturing jobs.

The cannabis legislation must be voted on again by the General Assembly in order for it to become law. Between now and then, Virginia will elect a new governor. Republicans have chosen businessman Glenn Youngkin as their candidate, and Democrats former Gov. Terry McAuliffe to be theirs.

While there are many business issues that need to be addressed by the incoming governor, there is no doubt that right-to-work must be at the top of the list. On Sept. 28, the Northern Virginia Chamber will host a debate between Mr. Youngkin and former Gov. McAuliffe. You can bet right-to-work and efforts like the amendment to the cannabis bill will be front and center.

How can we help you and your business transform in 2021?

James Coltharp Policy Solutions helps companies and industries to meet regulatory and government-related needs and to respond to critical issues/policy projects by advising on public policy strategy development and creating effective and reasonable solutions for today’s competitive environment.

The KeePressingOn Project serves businesses, teams, and executives who seek to generate growth and increased productivity through relationships that build trust, encourage excellence, and create an expectant, positive view of the future.

By providing highly professional business and executive coaching and strategic consulting, we help drive a culture of competitive excellence for a diverse range of clients. We act as a catalyst and quickly build a strong start for teams with energy that lasts, discipline and commitment that fuels peak performance through trust- building.

Our skillset and experience uniquely qualify us to provide valuable insight and advisement on public policy, create smart, effective strategies, and successfully execute for an optimal outcome for your organization. Contact us today.