Chrysler Tackles Detroit Two-Tier Wage System
Being an American auto worker is a rare career path in today’s world. In Detroit, it can be even harder. Chrysler has spent decades utilizing Detroit’s two-tiered payment system. New employees make much less ($14 – $16/nr) than their counterparts who have been employed longer. With UAW arguments and poor economic growth year-to-year, there’s little to no chance of a wage increase.
Chrysler Fiat CEO Sergio Marchionne is looking to change that.
Marchionne says he’d rather “have all his workers on the same pay scale,” hinting at changes when the maker’s contract expires in 2015. It has plenty in the auto industry curious about what the exec has in store.
“This economic disparity between people on the (production) line is not something that can go on indefinitely,” Marchionne told reporters during a recent conference call.
The UAW wants to eliminate the two-tier structure, which has divided union members and almost caused the rejection of this year’s contracts with Chrysler, as well as the other two American car companies.
Source: MSNBC
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