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July 20, 2009
Higher Pay for Union Workers

Employers would have the discretion to pay “greater wages, pay, or other compensation” to union workers, under the Rewarding Achievement and Incentivizing Successful Employees (RAISE) Act (S. 1184, H.R. 2732).

“Current federal law caps the wages of employees under union contracts that establish both a wage floor and a wage ceiling. This means that businesses may only pay these employees as much as the union contract allows…,” Sen. David Vitter (R-Louisiana), who introduced the Senate bill, said in a statement on his website.

“Without this legislation, union workers end up trapped in a one-size-fits-all contract that denies them the opportunity to be rewarded for individual achievement,” he added. “Under current law, it is impossible for the most determined achiever to be rewarded in any material way beyond the most complacent co-worker.”

The legislation was referred to the Senate’s Committee on Health, Education, Labor, and Pensions and to the House’s Committee on Education and Labor.

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