Biggest U.S. Automakers Said to Study New Lower-Pay Tier for UAW [View all]
Source: Bloomberg
by David Welch & Keith Naughton
Bloomberg) -- U.S. automakers General Motors Co. and Ford Motor Co., heading into negotiations with the United Auto Workers union, are considering asking to create a new tier of lower-paid union workers in their U.S. factories, people familiar with the matter said.
This new pay rate for some lower-skilled jobs would help the car manufacturers lower labor costs as they compete with Asian and European rivals that typically pay less at non-union U.S. plants, said the people, who asked not to be identified discussing private plans.
The UAW has said it wants raises for both its top-paid $28-an-hour assembly workers and the lower-paid second tier, whose wages top out at $19.28. The union, which abhors different wages to members doing the same job, is already considering pushing to eliminate the second tier, said a person familiar with the leadership’s thinking.
Asking for a lower-wage third tier could be a tough sell with union negotiators at a time of growing disparity in U.S. incomes. UAW leaders are already under pressure from their 80,000 auto-making members to eliminate the second tier or at least get them a raise. Paying less to union members -- even newly hired workers -- isn’t on the UAW’s agenda.
FULL story at link.
Read more: http://www.bloomberg.com/news/articles/2015-03-23/biggest-u-s-automakers-said-to-study-new-lower-pay-tier-for-uaw
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