June 4, 2009

Contact: Joel DiGrado (202) 224-4623
Jennifer Cressy (202) 503-7930

(Washington, D.C.) – U.S. Sen. David Vitter and U.S. Rep. Tom McClintock today introduced the Rewarding Achievement and Incentivizing Successful Employees (RAISE) Act, which would reform the collective bargaining process in an effort to help steer America’s economy back on track.  The bill would allow employers to give merit-based bonuses or other increases in compensation above and beyond any collective bargaining agreement in place. 
            “Under federal law, employers cannot pay individual workers more than their union contracts provide,” said Vitter.  “This restriction holds back higher-performing employees – preventing them from earning more than their unions have negotiated for them – while it protects less competent workers and guarantees them the same raises that every other worker receives.”
            The RAISE Act seeks to provide an alternative to the current labor policies being promoted by the Obama administration and Congress.  Currently, the National Labor Relations Board can strike down bonuses and merit pay that have not been negotiated by the unions.  The bill would afford unionized companies the opportunity to award raises and bonuses to high performing employees, rewarding those individuals who make the extra effort to achieve in the workplace.
            “This bill embodies one of the most important principles of our nation – that those who work hard are rewarded for their efforts,” Vitter said.  “Under current federal law, however, that principle is rendered obsolete. The RAISE Act would change that and allow employers to award appropriate merit raises and bonuses beyond those negotiated by the unions and their bosses.”
            “RAISE restores union members’ freedom to earn individual raises through their own efforts   a freedom that federal labor law currently denies,” McClintock said.