Chrysler CEO vows to throw out 2-tier wages

Wants to eliminate higher wage, tie lower wage to company performance
By Liz Foster
|Canadian Labour Reporter|Last Updated: 05/26/2014

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

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

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