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 …
