If President Obama succeeds in raising the minimum wage law, he’ll have given many unions an automatic pay increase, a new report shows.
“An analysis of union collective bargaining agreements available from the Department of Labor’s Office of Labor-Management Standards indicates that many service, retail and hospitality industry labor unions—such as UNITE-HERE or the Service Employees International Union (SEIU)—peg baseline wages to the federal minimum wage,” the Center for Union Facts (CUF) observes. “Thus, in many cases, raising the federal minimum wage will either trigger wage renegotiations or automatic wage hikes for certain unionized employees.”
For instance, the Union of Needletrades, Industrial and Textile Employees (UNITE) has signed multiple contracts that “[w]henever the federal legal minimum wage is increased, minimum wage [in the agreement] shall be increased so that each will be at least fifteen (15%) percent higher than such legal minimum wage.”
The center found an SEIU chapter agreement stating that “[t]he minimum hourly wage rates shall exceed any statutory applicable minimum wage rate by fifty cents.”