Detroit Is Bluffing UAW on Third-Class Jobs

If three-tier pay was a serious proposal, it would be a big deal. But I tend to doubt that it is.

Don't believe the sticker price.

Photographer: Bill Pugliano

Back in 2007, when times were tough for the auto industry, the United Auto Workers agreed to a two-tier wage structure that allowed them to preserve salaries for current workers, while still achieving needed cuts to labor costs. Now automakers are proposing a third tier that will be even lower than the existing pay structure, the better to allow them to compete with non-union plants owned by foreign companies.

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