Chrysler CEO vows to throw out 2-tier wages

Union leaders fear plan will result in top-tier earners losing ground to meet bottom-earners in the middle
|Canadian Payroll Reporter|Last Updated: 06/11/2014

Union leaders have waged wars over the two-tier wage system,which keeps entry-level workers on a permanent, lower pay grid. So why — nowthat Chrysler Group CEO Sergio Marchionne wants to end the two-tier wagestructure at the Detroit Three auto plants in the United States — are they soworried?

“A two-tier wage system is completely destructive to theworkplace,” said Unifor’s national president Jerry Dias. “A two-tier wagesystem creates all kinds of dissension on the shop floor. While Marchionne isright in identifying the system as a problem, I don’t agree with his solution.”

Marchionne made mention of his intention at the FiatChrysler Automobiles five-year product plan unveiling in Auburn Hills, Mich.,on May 6. Touching on the issue of the 2015 contract negotiations with theUnited Automobile Workers (UAW), Marchionne reiterated his long-held oppositionto two-tier wages.