Did Indiana Autoworkers Strike a Blow Against Two-Tier Contracts?

[Omaha Steve]

X post in Socialist-Progressive

http://inthesetimes.com/working/entry/17196/did_indiana_autoworkers_strike_a_blow_against_two_tier_contracts




The UAW has declared ending two-tier contracts, where younger workers are paid less than older workers for the same work, a priority. (Courtesy of UAW Local 2335 / Facebook)

BY DAVID MOBERG

With their day-long strike a week ago and ratification of a new union contract on Sunday, workers at a Hammond, Indiana, auto parts plant may have dealt a blow to a divisive concession that has proven a scourge to many unions in recent years—“two-tier” wage systems.

Under these two-tier systems, new workers start at hourly rates far below longtime workers and have scheduled pay progressions that will never match the veterans’ pay (nor usually their benefits, especially pensions). For example, under the old contract at the Hammond plant, Lear paid new workers as little as $11 an hour, rising to a maximum of $16 an hour, while veterans made $19.97 an hour doing the same work.

By the end of their four-year contract with Lear Corp., local union president Jaime Luna said, the 760 United Auto Workers members who make seats for the Ford Taurus and Explorer models will all converge at the contract’s increased wage rate for experienced workers (now numbering about 200): $21.58 an hour.

But later on Monday, Automotive News reported that a Lear senior vice-president of human resources, Tom DiDonato, said that in order to eliminate the two-tier system for about 450 workers, the UAW agreed to accept a new job title for 310 positions—sub-assembly workers—with even lower wages. At the end of the contract, starting pay for subassembly workers would be $12 an hour (compared to $16.50 for assembly workers) and the maximum would be $15.25 (below the top pay of $16 an hour in the previous contract for assembly workers).

FULL story at link.

[Sherman A1]

1. Excellent!

I certainly hope so. I live under a three tier contract and while I am on the good end of things, I absolutely despise seeing diligent, dedicated co-workers get paid considerably less than I do. I know when my age group is gone the second tier will be the new top tier assuming things last that long.

Simply absurd.