Not necessarily. I'd imagine that a union could negotiate its pay-scales any way it likes, which could take into account "meritocracy" in many different ways. That could include ideas that are totally foreign to existing for-profit company practices, such as a peer-controlled meritocratic bonus implemented via the union itself.
> Shouldn’t they get higher compensation compared to the rest of the work force? How do we square that with collective bargaining that has set salaries and annual increases?
Here's a hypothetical: In a non-union shop, regular engineers get paid $100k, while 10x engineers get paid 120k. In a union shop all engineers get paid $150k. Should the engineers reject a union so the 10x engineers can get paid more than regular engineers, even though that means everyone makes less?
Also: Are the 10x engineers the people management chooses to pay more? Is management good at recognizing merit? When they recognize it, do they choose to compensate it accordingly? Or do they make the good business decision, and pay the meritorious employees the minimum amount of money they'll be happy with. For some 10x engineers, that could be 2x salary. For other 10x engineers, that could be 1.05x salary. For some 10x engineers, that could be 0.75x salary.