Rokita, Rubio: Eliminate Union Obstacles to Merit-Based Pay Raises

Press Release

Today, Representative Todd Rokita introduced the "Rewarding Achievement and Incentivizing Successful Employees (RAISE) Act", a bill to amend the National Labor Relations Act to allow employers to give merit-based compensation increases to individual employees, even if those increases are not part of a collective bargaining agreement. If enacted, the RAISE Act would essentially make wages set in union contracts a minimum floor, while giving employers the flexibility to reward diligent employees for their hard work. Sen. Marco Rubio (R-FL) introduced the RAISE Act in the Senate yesterday.

"Due to the President's failed leadership and policies, wages in the labor market are stagnant," said Rokita. "The RAISE Act is pro-worker, common-sense legislation to address this problem by allowing employees in Indiana and across the country to earn higher pay. This bill allows employers to give merit-based raises and bonuses to employees who contribute positively to the success of their businesses, ensuring that hard work and success are rewarded, not punished."

"Helping people achieve the American Dream means providing them with the skills and opportunities that lead to better pay in better jobs," said Rubio. "When America's workers earn a raise because of their hard work, union bosses should not be able to block it as labor policy currently allows. The RAISE Act would bring greater fairness and opportunity to the modern workplace by giving American workers the freedom to earn more money for a job well done."

Under current law, unless it is specified otherwise in a collective bargaining agreement, the wage specified in the union contract is both a minimum and a maximum. This bill would apply to 7.6 million American unionized workers, 2.8 million of whom are women.

Source