CO-SPONSORSHIP of the RAISE Act (House)
This week, Representative Todd Rokita (R-IN) introduced the Rewarding Achievement and Incentivizing Successful Employees (RAISE) Act (H.R.4385), which would allow employers to pay individual union workers more than the union contract specifies. Currently, union contracts set both a floor and a ceiling on wages, meaning that while workers cannot be paid below a certain amount, they also cannot be paid above a certain amount, eliminating true performance-based pay.
The legislation is necessary because unions have actually fought bonuses awarded to their members. The National labor Relations Board (NLRB) has sided with the unions, and not the workers, in such cases, claiming the bonuses constituted an illegal “direct dealing” with the workers. “Direct dealing” is forbidden under collective bargaining law. This means that if a union worker works hard, takes initiative and proves to be an indispensable asset to their actual employer, they can’t be rewarded unless the union says so.
This creates the false dynamic that the union, not the actual company, is the source of their income. Hard workers end up being held back while less productive workers are propped up. It removes the incentive for hard work and runs contrary to the spirit and values that built America.
The RAISE Act would not eliminate the floor set by collective bargaining agreements, but would remove the pay ceiling, allowing exceptional employees to be compensated as such. It also does not allow employers from unfairly rewarding non-union workers with raises just to punish union workers. Simply put, it is not union busting, but a way of rewarding deserving employees.
Heritage Action supports (H.R.4385) and will include CO-SPONSORSHIP of this legislation in our scorecard.
Heritage Action’s Legislative Scorecard
For Employees, It’s Time for RAISE
Heritage: Rewarding Achievement and Incentivizing Successful Employees (RAISE) Act
RAISE Act Lifts Pay Cap on 8 Million American Workers