More recently, Fiat Chrysler CEO Sergio Marchionne referred to the two-tier wage structure as impossible and described

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More recently, Fiat Chrysler CEO Sergio Marchionne referred to the two-tier wage structure as “impossible” and described it as “almost offensive.” He also offered more detail on his preferred path to eliminating the two-tier system. Specifically, the Wall Street Journal described his plan as “freezing veteran worker wages and offering less-senior workers more profit-sharing potential.” The Wall Street Journal goes on to say the “UAW [United Automobile Workers] leaders agree with Mr. Marchionne’s stance about ending the two-tier structure, but they are also under pressure from members to win wage increases for veteran workers who haven’t had a raise in about a decade.” Bloomberg Business summarized Marchionne’s plan a bit differently: “he prefers phasing out the higher-wage workers and paying everyone at the lower tier with a larger performance bonus to eliminate the gap between the two wage levels. In good years the lower tiered worker would be paid the same as the higher level under such as scale.”

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Compensation

ISBN: 978-1259532726

12th edition

Authors: George Milkovich, Jerry Newman, Barry Gerhart

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