The North American automotive industry has been rolling along at a brisk pace, with sales in the U.S. rebounding to pre-recession levels. Many expect 2015 to be more of the same, but there are potential obstacles that could put the brakes on the industry’s momentum.
Among the unknowns: The future of the 2-tier wage system at UAW-organized plants.
“No more concessions. We are tired of it. Enough is enough,” New UAW President Dennis Williams said during his inauguration speech. “We are all committed to eliminating the 2-tier system.”
Williams claims the lower level of the 2-tier compensation structure, where newly hired employees earn roughly $20 an hour compared with $27 for veteran workers, does not provide a livable wage. He characterizes it as a starting point arrived at by bargainers from the UAW and Chrysler, Ford and General Motors during a time of crisis.
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