By on May 25, 2011

After reaping the hurricane by forcing “Tier One” workers at GM’s Orion Assembly plant into the UAW’s “Tier Two” last year, essentially giving workers a 50% pay cut, GM has been working with the UAW ever since to mitigate that decision. Now, Bloomberg reports that the UAW’s GM negotiator is targeting the $14/hour Tier One wages for growth in upcoming negotiations, arguing that the lower pay rate is “not a middle class wage.” But, he adds

The union doesn’t expect to reach $28 an hour this year for new workers, and it doesn’t intend to make GM uncompetitive

We’ll have to wait and see what that means, but any effort on the part of GM and the UAW to reduce the gap between Tier One and Tier Two wages will help relieve the inevitable shop-floor tensions that such inequity creates.

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9 Comments on “Will The UAW Fight For Second Tier Wages?...”

  • avatar

    If they need incentive for sorting this out, I recommend listening to “This American Life’s” story on the Fremont, CA plant. It’s about NUMMI but I think they need to be reminded of what disgruntled workers are capable of when pressed.

  • avatar

    Considering the rate at which many of the big hedge funds are dumping GM stock, this may be meaningless. The US gov. is next.

  • avatar

    Amazing how soon the UAW forgets about GM and Chrysler bankruptcies. Let’s drive them into the ground again, says Bob King.

    • 0 avatar

      Cause and effect is it then? UAW brought down the big 3. You’re sure of that? You did your research? You thought it out? The logic is inexorable and backed up with empirical evidence? This is a certainty?

  • avatar

    Its only a matter of time before a union that has its act together like the SEIU guides the lower paid, tier two workers at the plant through a decertification of the UAW, a recognition of the SEIU and a new, single rate of pay contract that involves no overall increase in total wages for GM. The UAW is like cancer – it puts its own viability first, even if it destroys the workers.

  • avatar

    We’ll see how much the SEIU has its act together after Obama gets defeated for re-election.

  • avatar

    must be drag to make cars you can’t afford to buy. Aw heck – chain em to a work station and be done with it.

  • avatar

    Actually, it’s a drag to have to subsidize grade school drop outs making twice the national average wage and we still can’t afford the cars those UAW clowns produce because of their golden pension plans.

  • avatar

    VW’s new Tenn plant has set the bar even lower than UAW Tier 2 per this weeks WSJ.

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