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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.
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.
Ford workers in Dearborn were among the final UAW members to cast votes on the historic 2023 UAW contract. Ford workers ratify historic 2023 UAW contract with 69.3% support for wage hikes ...
UAW workers hired after 2007, for example, are granted 401(k)s instead of defined pensions. In 2021, workers at health care giant Kaiser Permanente and the cereal maker Kellogg authorized strikes ...
Tiers for the Detroit automakers were created starting in 2007 as the UAW tried to help them out of serious financial troubles. Auto worker strike highlights disparities between temporary and ...
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 ...