(Brookville, Ind.) - Suspicions are raised about whether a company chose to located in Franklin County because of Indiana’s new right to work law.
Earlier this week during a post-legislative news conference with reporters, Governor Mitch Daniels pointed to MBC Group as a product of the law when the company opened a warehouse in Brookville.
In a February 29 press release announcing MBC’s new operation at the former J&J Packaging facility on State Road 101, company president and owner Eric Holloway was quoted saying, "With its low tax environment, robust infrastructure, superb logistic support network and right-to-work status, Indiana was a no-brainer location for us.”
Holloway told the Associated Press he did sign off on the announcement before it was released, but did not notice the right to work reference in his quote.
The Indiana State AFL-CIO issued a statement following the story.
“While it's not shocking, it’s disappointing that our officials would stoop to this level in order to deceive the public which they are supposed to represent. It's equally disgusting that the administration is clearly pressuring businesses that are applicants for or recipients of state economic development incentives into furthering this deception,” the labor organization said.
Tom Cheek, an Aurora resident running as a Democrat for State Representative in District 67, said this episode shows that right to work was only passed by a Republican-led statehouse as a shot at labor unions.
"It is quite obvious that the reason to push this legislation through so fast was to cripple labor unions which will hurt all working Hoosier families. This legislation was also supported by my opponent (State Rep. Randy Frye)," Cheek said.
Daniels said 28 companies have shown interest in locating to Indiana since he signed right to work into law. Three others, including MBC Group, have already committed to the state.
MBC Group’s $4.1 million expansion in Brookville could eventually create 101 jobs there, the company said last month. The move is being helped by $625,000 in conditional state tax credits and up to $100,000 in training grants.