American Workers Deserve a RAISE

Rory Cooper / June 04, 2009

LIFTING THE PAY CAP ON 8 MILLION WORKERS

Unions Cap Their Member’s Pay

• Setting a Wage Ceiling: Currently union contracts set both a wage floor and a wage ceiling. Unionized employers may not give productive workers pay raises outside the collectively bargained contract.
• Seniority-Based Pay: Unions usually demand that employers reward workers for “time served” rather than “hard work.” No matter how good an employee does his job, he cannot earn higher wages than what his union contract specifies.
• Holding Back American Productivity: This “seniority ceiling” keeps union members from reaching their full potential, since there is no incentive for outstanding performance nor ability to move up the ladder.

The RAISE Act

• Lifting the Ceiling: The RAISE Act (Rewarding Achievement and Incentivizing Successful Employees) would allow employers to pay individual workers more, but not less, than the union contract specifies. (more…)