Colorado’s union battleground: Business groups unite against labor vote change

The Northern Colorado Legislative Alliance’s Board of Directors has announced its opposition to Colorado Senate Bill 5 (SB 25-005) joining a growing coalition of business groups fighting proposed changes to Colorado’s longstanding labor laws.

Colorado Senate Bill 5 (SB 5) has ignited a fiery debate over the state’s storied Colorado Labor Peace Act (CLPA), a mid-20th-century compromise balancing unionization rights and individual worker freedoms. This legislation seeks to eliminate the unique two-tiered voting system that has defined Colorado’s labor law since 1943, but opposition to the proposed changes is fierce and widespread.

The Current System: A Unique Labor Law

The CLPA requires workers to pass two thresholds to fully unionize:

1. First vote: A simple majority (50% +1) of employees must agree to union representation, as required by the National Labor Relations Board.
2. Second vote: A supermajority (75%) must agree to mandatory dues collection for all employees, union members or not. The second vote is unique among states.

This dual-vote structure has made Colorado a “modified right-to-work” state, balancing union interests with individual worker rights. SB 5 aims to abolish the second vote, aligning Colorado with “forced union” states, where a single majority vote can mandate union dues for all employees.

The big picture: Business leaders argue the current Labor Peace Act has helped make Colorado one of the nation’s strongest economies while maintaining fair worker protections.

NCLA concerns with Senate Bill 5:

• Economic competitiveness could suffer in attracting new companies
• Higher labor costs could discourage business expansion
• Current system provides transparency and worker choice
• Could jeopardize Colorado’s position in site selection decisions

Polling Insights: Strong Voter Opposition

A recent WPA Intelligence poll commissioned by the Denver Metro Chamber of Commerce found that 70% of Colorado voters oppose removing the second vote. Support for SB 5 remains low across demographics:

• Republicans: 87% oppose, only 9% support.
• Independents: 72% oppose, 24% support.
• Democrats: 50% oppose, 43% support.

Age also plays a role, with 66% of 18–34-year-olds and 72% of those over 65 opposing the change.

 Economic Considerations: A Delicate Balance

Colorado’s labor market is among the nation’s most competitive, with average hourly wages 22% higher than the national average. Benefits for workers, including sick leave, family leave, and unemployment insurance, are among the most generous in the U.S. 

Proponents of SB 5 argue that simplifying unionization will empower workers and strengthen collective bargaining. Opponents counter that mandatory dues could increase costs for employees without providing proportional benefits, especially in a high-wage state like Colorado. The Common Sense Institute highlights a potential rise in the cost of living and unemployment, particularly for young workers, as unionization expands​.

Impact analysis from Common Sense Institute shows:

• Current union membership: 6.9% (lowest among RTO states)
• Colorado workers already earn 22% above national average wage
• Could result in 152,000 fewer new jobs by 2040
• Business growth could drop to half historical rates
• Higher cost of living: RTO states typically have costs 10.8% above RTW states
• Youth unemployment could increase by 4,700 workers

Broader Implications for Colorado

Eliminating the second vote could impact Colorado’s economic appeal. According to site selection experts, 50% of economic development deals consider right-to-work status a critical factor. Critics warn SB 5 risks shifting Colorado’s perception away from a balanced labor market, potentially deterring investment​.

What they’re saying: “SB005 presents a solution in search of a problem. Workers are capable of understanding the costs and benefits of union membership when presented complete information,” according to an NCLA blog post and talking points on the measure. 

What’s next: The legislature will debate the bill this week amid strong opposition from the business community and polling showing bipartisan voter concerns about the proposed changes.  Attempts to negotiate a compromise between labor and business will be made over the course of the week.