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Committee approves bill barring government contracts from requiring private contractors—' employees to be unionized or nonunionized
Summary
The committee voted 8-3 to pass Senate Bill 405 as amended. Supporters said the measure prevents governmental entities from requiring a contractor's workforce be union or nonunion; opponents said existing right-to-work law and Supreme Court precedent already address the issue.
Senate Bill 405, as amended, was approved by committee after sponsors and opponents debated whether the measure is necessary given existing law.
Senator Sarah Rogers (Sponsor) said the amendment clarifies the bill—s reach: when a governmental entity contracts with a private operator to manage or lease a publicly owned asset, the governmental entity "may not require or consider as a provision of the contract or condition of entering into a contract that the employees of the private entity are members or nonmembers of the labor organization," she said.
Neil Gath of the Gath Law Office, testifying for the Indiana AFL-CIO, opposed the bill as unnecessary and duplicative, citing Indiana—s 2012 right-to-work statute and the U.S. Supreme Court—s Janus decision. "Limitation on union membership for private employees was passed in Indiana back in 2012," Gath said, and he argued a new statute would create legal confusion.
Natalie Robinson, state director for the National Federation of Independent Business, testified in support, saying the bill helps small businesses by preventing union mandates from limiting contracting opportunities. Matt Bell of the Associated Builders and Contractors of Indiana also supported the bill, saying it promotes an open playing field for companies bidding to operate public facilities.
After committee debate, members moved to pass the bill as amended. The roll call recorded eight votes in favor and three opposed: yes votes included Representatives Vanatter, Hostetler, Abbott, Issa, Morris, Cash, Genda and Teschka; no votes were recorded for Representatives Mosley, Bartlett and Gore. The committee recorded the outcome 8-3 in favor of passage.
Supporters said the bill addresses a potential contractual mechanism by which a governmental owner might require a private operator to adopt a specified union posture for its workforce; opponents said existing state and federal labor law already limits what employers can require.
The bill will advance from committee as passed.
