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  • Removing Union Pay Ceilings

    Union contracts do not just set the minimum compensation that workers can earn; they also set maximum wages.

    Employers may not pay employees more than their union has negotiated. Unions typically base pay on seniority and job classifications—not individual effort or productivity. Workers cannot bargain individually for more. By law, hard-working union members get the same pay as those who slack off.

    The National Labor Relations Board (NLRB) strikes down attempts to raise wages without union permission. The Brooklyn Hospital Center rewarded its best nurses with $100 gift cards. The NLRB told the hospital to cease and desist. The Register Guard Publishing Company gave a bonus commission to employees who sold advertising contracts that the company wanted to promote. The NLRB also ordered them to stop.

    Union contracts should not prevent workers from earning raises. The Rewarding Achievement and Incentivizing Successful Employees (RAISE) Act corrects this problem. It amends the National Labor Relations Act to eliminate the wage ceiling. The RAISE Act allows employers to pay deserving employees higher wages for their work without facing unfair labor practice complaints. The Senate may vote on the RAISE Act as an amendment to the farm bill.

    The RAISE Act would benefit employers and employees by allowing companies to offer performance pay to reward productivity. Unsurprisingly, employees work harder when their employers reward their hard work. Research shows that the average worker’s earnings rise 6–10 percent when they can get performance pay. Companies pay these higher wages out of the higher revenue their productivity generates. Both sides win.

    Forbidding employers from paying individual union members higher wages makes no sense in today’s economy. Workers want their achievements recognized, and employers want to reward productivity. The RAISE Act lifts the seniority ceiling and allows union members to get ahead. Why should unions have the power to turn down a raise on a worker’s behalf?

    Posted in Featured [slideshow_deploy]

    3 Responses to Removing Union Pay Ceilings

    1. infidel4ever says:

      Bobbie, Well said, the unions are nothing but a laundering scheme of tax dollars used to fund most statist campaigns!

    2. Mike, Wichita Falls says:

      Maybe the union leadership would go along with it if dues could be extracted from those higher wages. They despise big business for seeking nothing more than the almighty dollar, but that's all that matters to them too. They care no more for the little guy than Obama does with his $40K per plate fundraisers.

    3. Frank Mazuca says:

      yeah lets get rid of all the Unions so the boss can do whatever they want. Let's throw out minimum wage, overtime rules, sick time, pensions and health care. Throw out social security and medicare, those were progressive Union ideas. Do away with OSHA, why have health standards who cares if a worker loses his arm or leg at work. Bobbie infidel you are brain dead morons and need to move to China where you can have the kind of world the right wing of this country want.
      I am not afraid to sign my name.

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