Saturday, October 29, 2011

Report: Marchionne: Two-tier wage structure untenable

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Sergio MarchionneChrysler CEO Sergio Marchionne has said that he hopes to end the automaker's two-tier wage structure in the company's next round of labor talks with the United Auto Workers. According to Automotive News, Marchionne said that the current system creates two classes of workers and that it isn't viable in the long term.

The CEO went on to say that the program is currently undermining efforts to make Chrysler and Fiat work together as a single entity. Ideally, Chrysler would have a single wage set that recognizes the level of worker involvement in generating profits for the company.

As Automotive News reminds us, domestic manufacturers won the right to pay entry-level workers a lower wage in 2007. UAW President Bob King has already made waves about doing away with the two-tier pay system, and Marchionne says that his views are consistent with those of the union leader. King said that the union originally left a one-tier system to help save domestic automakers, but now that Ford, General Motors and Chrysler are beginning to look healthy once again, workers want equal pay.

Marchionne: Two-tier wage structure untenable originally appeared on Autoblog on Fri, 28 Oct 2011 18:31:00 EST. Please see our terms for use of feeds.

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