New labor unions would have a tougher time organizing in Georgia thanks to legislation that gained final passage Wednesday in the state House.
Lawmakers voted 96-78 along party lines to approve Senate Bill 362, which would prevent companies that voluntarily recognize unions from accessing tax credits for mega-projects, such as new automotive plants.
The legislation would prevent businesses from receiving state economic incentives if they voluntarily recognize unions through a check of signed union cards rather than through a secret-ballot election. Companies would also be punished for sharing their workers’ contact information with unions, even though doing so is required under federal law.
The bill now goes to Gov. Brian Kemp, who made it a priority.
Republican Rep. Will Wade, a Kemp floor leader, said by tying economic incentives to a requirement for a secret ballot for union organizing, the bill would protect employees’ privacy regarding how they voted.
Companies that voluntarily recognize unions would still be restricted from receiving tax credits for mega-projects that create 1,000 or more jobs, including Hyundai Motor Group’s electric vehicle and battery plant near Savannah. Rivian announced earlier this month that it was pausing its plans to build a $5 billion electric vehicle and battery plant and create 7,500 jobs.
The United Auto Workers announced in November that it would attempt to organize nonunion factories run by automakers in the South, including Hyundai and Rivian.
State leaders have attempted to persuade automakers to operate in Georgia for years after the closure in the mid-2000s of the Ford plant in Hapeville and a General Motors factory in Doraville where thousands of union employees worked.
Kia opened its West Point plant in 2009 and has been the state’s sole car manufacturer since, after Georgia failed to attract Daimler AG and Volvo in the 2010s.
Labor organizers in Georgia have expressed disappointment and confusion about motivations to restrict unions. Just 5.4% of workers in the state belonged to a union in 2023, according to the U.S. Bureau of Labor Statistics. The legislation is “a solution in search of a problem,” said James Williams of the Georgia chapter of the AFL-CIO, the council of labor groups.
“Why do we need any kind of measure that would address this at all when it’s such a small part of our workforce?” said Rep. Gregg Kennard, a Democrat who represents Lawrenceville. “Why would we do anything to be anti-labor when we need to attract more workers from any source available?”
Workers have the right to form a union and collectively bargain for wages and working conditions without being fired under the National Labor Relations Act of 1935, also known as the Wagner Act.
But Georgia has been a right-to-work state since 1947, when Congress passed the Taft-Hartley Act, allowing workers to refuse joining a union or paying dues, even though they may benefit from contracts negotiated by a union with their employer.
The bill removes one of two federally protected methods for how employers can respond when workers form a union: They can voluntarily recognize a union, which unions prefer because it allows them to begin negotiating with companies immediately. Or they can require workers to hold a secret-ballot election, which labor advocates say can take longer to conduct and allow employers more time to deter workers from supporting a union.
“I, as a small business owner, should have the final decision on how I handle labor and workforce with my business,” said Democratic Rep. Long Tran, who owns Peachy Corners Cafe in Peachtree Corners.
If the bill becomes law, Georgia would follow other Southern states, such as South Carolina and Tennessee, that have enacted or supported similar legislation.
House Industry and Labor Chairman Bill Werkheiser, R-Glennville, said legislation passed by the House in 2013 already prevents employers from voluntarily recognizing unions through card checks.
But Rep. Saira Draper, a Democrat who represents parts of Atlanta, said she has concerns that this bill would conflict with federal law.
“If this bill passes, there will be a lawsuit,” she said. “It will cost Georgia taxpayers millions of dollars. And the state will lose.”
