Competitive Enterprise Institute | 1899 L ST NW Floor 12, Washington, DC 20036 | Phone: 202-331-1010 | Fax: 202-331-0640
Workers need incentives to perform to their utmost capability. Working hard and performing your job well is usually rewarded with greater compensation. Unfortunately, this is not the case at many unionized workplaces, where collective bargaining agreements impose a wage ceiling, in addition to a wage floor. The vast majority of these agreements grant pay increases based on seniority rather than merit.