Indiana Gov. Mitch Daniels

Welp, looks like Mitch Daniels stepped in it.

The Indiana governor held a press conference on Monday to reflect on accomplishments made in the latest legislative session. He talked about getting approval for full-day kindergarten, a smoking ban and a new agreement to have Amazon collect Indiana sales tax. He also talked about Right to Work, the most controversial, and significant, change in Indiana law in the past year.

Daniels said, after passing Right to Work, three companies have decided to expand their business in Indiana. Only one company, the MBC Group, has been identified publicly. Daniels said even more companies are in negotiations with the state, thanks to Right to Work.

“I probably underestimated how important an addition to our already excellent business climate this was going to be,” Daniels said during the press conference.

There’s just one thing: the one company Daniels named that expanded because of Right to Work didn’t actually expand because of Right to Work.

The Associated Press tracked down the president of MBC Group, Eric Holloway.

“We are not a union shop,” Holloway told the AP. “The effect that this was going to have was not going to affect our decision one way or another.”

Holloways company is planning an expansion that’s expected to create 101 jobs, and include $4.1 million in new investment.

The Right to Work mixup seems to have come from a press release issued from the governor’s office last month. The release included this quote from Holloway:

“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 tells the AP he did sign off on the quote, “but probably would have changed it had he noticed the ‘right to work’ language.”

And, Holloway says he personally supports Right to Work.

But with all the controversy about Right to Work, those who support it are eager to point out the benefits. In the case of the MBC Group, the claim was a little ahead of the facts.

The Indiana AFL-CIO was quick to jump on the mistake. On its website, the union said:

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.

This should cast doubt on any future claim made about this legislation’s economic impact.

The gaffe could also have implications beyond Indiana’s borders. As Right to Work becomes an issue in Ohio and Minnesota, you can count on this story coming up again.

Wah Wah

Whoopsie Two weeks ago, a state press release in Indiana promoted the MBC Group as an example how the state’s new Right to Work law is creating jobs. One problem: the president of the MBC Group says Right to Work played no role in his company’s decision to expand.

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