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A second-tier wage of $14.50 an hour, which applies only to newly hired workers, is lower than the average wage in non-union auto companies in the Deep South. [47] One of the benefits negotiated by the United Auto Workers was the former jobs bank program, under which laid-off members once received 95 percent of their take-home pay and benefits.
The employer wishes to reduce overall wage costs by hiring new employees at a wage less than the wage of incumbent workers. [1] [2] A much less common system is the two-tier benefit system, which extends certain benefits to new employees only if they receive a promotion or are hired into the incumbent wage structure. [3] [4] [5]
A two-tier pay or benefit system can also chip away at the power of labor unions since new hires may be less inclined to join, leading to lower union membership and divided workforces.
All three contracts also eliminated the two-tier system of wages, wherein some workers were classified as "temporary workers" and paid less. For example, at Ford a temporary worker who previously made $16.67 an hour will now be classified as permanent, and make a minimum of $24.91 an hour.
Under the UAW’s 2019 contracts, which expired Friday, a new hire can eventually work up to the pay level of a veteran employee, but reaching parity takes eight years.
WAYNE, Michigan (Reuters) -Striking auto workers converged on a Ford assembly plant on the outskirts of Detroit on Friday morning to show their support for the most ambitious labor action in ...
The UAW is pushing automakers to eliminate the two-tier wage system under which new hires can earn far less than veterans. Long walkouts at factories producing large pickup trucks could cost the ...
In 2021, this facility (one of the largest employers in Southwest Virginia [3] [4] and Volvo Trucks' largest plant [5] [6]) employed about 3,300 people, of whom about 2,900 were union members of the United Auto Workers Local 2069. [2] [7] The union and company had last agreed to a labor contract in 2016, with an expiration date of March 16 ...