June 21, 2012

Unions were originally created to give a voice to under-represented workers and to work in their members’ best interests.

Now though, many unions are doing just the opposite by refusing their members compensation for hard work. Not only do many union contracts set wage floors, they also establish pay ceilings. This prevents employers from offering wage increases without negotiating with the unions first.

Congress is now considering legislation that could improve this system. Heritage Foundation expert James Sherk and attorney Ryan O’Donnell explain:

The RAISE (Rewarding Achievement and Incentivizing Successful Employees) Act, introduced this year by Senator Marco Rubio (R–FL) and Representative Todd Rokita (R–IN), would lift the “seniority ceiling” on workers’ wages by allowing employers to pay individual workers more—but not less—than the union contract specifies.

In other words, the law would provide employers a way to reward their best employers. For employees, “The RAISE Act enables enterprising workers to be rewarded for their own hard work.”

In related news, a Supreme Court ruling today “significantly strengthens nonunion members’ First Amendment rights not to contribute to union political activities.”

Do you think American employers should be allowed to reward their best workers with higher pay?