Tuesday, December 16, 2014

Two-Tier Wage System Targeted For 2015 UAW Negotiations

Dennis Williams

2015 is only 15 days away, which means new contract negotiations between the Detroit Three and the United Auto Workers are coming, the main focus being the elimination the two-tier wage system implemented in 2007.

The Detroit News reports the UAW's hourly members are calling for the abolition of the system, which has done nothing but "cause a divide" up and down the roll "on both sides of the aisle," per Local 2209 president Brian Hartman.

There may be trouble within, however, as Tier 2 employees receive bonuses and profit-sharing checks in lieu of being on parity with Tier 1 workers. The former may not be so willing to see lowered or disappeared bonuses just to level up to those making more, while the latter would like to not only see the system die, but to gain a raise in pay — including the restoration of holiday and cost-of-living adjustment payments — in so doing.

Other issues on the table for 2015 include securing overtime pay after eight hours per day — instead of overtime after 40 hours per week — ensuring all employees receive a defined pension scheme, and hiring temporary employees for permanent positions after 90 days.

The environment for the negotiations will be different compared to those held since 2007: UAW workers at General Motors and Chrysler Group will be able to strike for the first time since 2011, while non-union employees now have the right to remain as such via Michigan's right-to-work law. UAW president Dennis Williams hasn't focused too much on the right-to-work situation, believing that if one does their job in representing those under their care, the people would give their undying support to the leadership.

The post Two-Tier Wage System Targeted For 2015 UAW Negotiations appeared first on The Truth About Cars.



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