Compare and contrast concessionary bargaining and two-tire wage Essay

Compare and contrast concessionary bargaining and two-tire wage systems - Essay causeAnd supermarkets will contribute only 35% for the pensions of new workers, down from their previous contribution of 100%.The United Auto Workers also accepted a two-tier structure in a supplemental agreement with the two major parts suppliers, Delphi and Visteon, that employ 52,000 workers. While workers at the Big Three auto plants average well-nigh $24 an hour, the new hires at the parts plants will start at $14 an hour and can eventually rise to $18.50.In the public sector, the 121,000 members of soil Council 37, American Federation of State, County and Municipal Employees (AFSCME), have approved a contract that allows its members to gain wage increases that will be paid for by reducing the pay, contrive days and vacation benefits of newly-hired employees.A two-tier system violates the basic union principle of equal pay for equal work. How should a newly-hired worker feel if he is doing the a forementioned(prenominal) work as another worker and getting only two thirds of his payIt turns the new hires into second-class citizens within the union, breeding dissatisfaction and division. It makes it more difficult to protect unity and solidarity. Moreover, employers, in addition to drastically cutting their labor costs, can use their hiring policies to weaken the union. As union power wanes, companies are finding it easier to produce global competition and request stringent concessions that workers are unable to accept.Such concessionary bargaining happens during recessions or industry-specific downturns when some companies face the prospect of filing for protection below the U.S. Bankruptcy Code. Whats unusual now is how many cases involve companies that are in good shape but cite increased global competition as the reason for the demands. A lot of companies now are doing it just because they believe they can its opportunistic, says Ron Blackwell, chief economist for the AFL-CIO.WORKS CITEDHarry, Kelber. Unions Accepting a Two-Tier Pay transcription Are Giving a Major Concession to Bosses. June 9, 2004 Online article