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If I Were Starting A Union, Here's What I'd Do...

I'm spent a lot of time over the last week thinking about the challenges of the budgeted merit increases - you know the drill - 4% across the board, and you need to get "pay for performance" out of that.  Which got me thinking about this ...

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If I Were Starting A Union, Here's What I'd Do...I'd rip a page from the player's unions in the major sports leagues and focus my bargaining on the establishment of a salary cap.

Once the cap was established as a percentage of company revenue, the deal would be pretty simple from an economic perspective - members of the union would get more cash as revenue grew, and they'd be at risk if revenue didn't grow or decreased (I'd have to figure out how new headcount impacts that - there would have to be some way to protect a certain % of growth for the incumbents).

Of course, membership drives for my union would be challenged - mainly because the majority of workers in America have no interest in that kind of risk, or at least see little value in the upside. They'd rather take their 3% annually.

Which means I'd have to attempt to unionize high performers and Linchpins only.  Of course, that's problematic since this group really doesn't need representation and can increase their compensation on their own, both within the same company and via the free market.

Crap.  Back to the drawing board...

Comments

Karen H.

I've actually seen this attempted (education industry of all places). The last company I worked for (over 7 years ago now) put salary caps in place for all locations, except at the corporate office. Each principal had so much to spend on salaries, and when it was gone, it was gone. If the location didn't do well, then either the increase budget was minimal to none. If the location did really well, then the increase budget was large. That CEO (who was a sports guy, like you KD) has since left that organization, so I'm guessing they have since changed the model. In my opinion, it doesn't really work that well in schools anyway, because teachers are needed in each classroom, regardless of if there is money available in the salary cap budget or not.

Cueincsa

Wage cap organizing brings things to the mean, not to rewarding the best performers - fight for $15

patrick

Yes about the salaries and Union only Africa and especially Africa are the best fight for the members but the Court let members downs

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