June 21, 2012
By James Sherk
They often want to. Individual performance-pay can motivate employees to work harder. This increases both. Unfortunately, most unions dislike performance pay. As Henry put it, unions want to “negotiate contracts that create a uniform, fair process for granting wage increases.” So everyone gets the same amount — no matter how hard they work.
The RAISE Act allows employers to reward individual achievement with higher pay. The SEIU considers this intolerable, and thinks “it undermines the fairness collective bargaining contracts bring to the workplace.” Worse, “employers would be allowed to ignore what they agreed to in collective bargaining agreements — and that’s not fair.” No wonder so few workers want to unionize.
First appeared on NationalReview.com.
Research Fellow, Labor Economics
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