UAW Declined Marchionne Proposal Of $22 Flat Rate For All Blue Collar Workers

Chrysler Group LLC wanted to pay all U.S. production workers $22 an hour as part of a plan to eliminate the United Auto Workers' current two-tier wage system, according to two sources close to the recently concluded contract negotiations between the company and the union.

That would have provided a big raise for new hires, who were making less than $15 an hour. But it would have been a painful cut for veteran employees who make up most of Chrysler's work force. They currently are paid $29.11 an hour.

Chrysler CEO Sergio Marchionne said last week that getting rid of the two-tier pay system was a key goal that he failed to achieve in this year's labor talks, and he promised to put it back on the table when the new contract expires in 2015. He called the current system unfair because it creates two classes of workers, but did not offer details of his proposal to replace it with a common base wage.


 
Read Article

Larrybel2000 - 11/4/2011 5:18:44 PM

+2 Boost

Idiots. They shoot themselves in the foot.

mini22 - 11/4/2011 6:04:12 PM

0 Boost

Well $22 is splitting it down the middle. Perhaps because there are more longer term workers I would have gone with $23 or 23.50.However
the climate could be different in 2015.