Delegates at this week’s 2015 UAW Bargaining Convention in Detroit are pushing hard for an end to the two-tier wage system in place since 2007.
Detroit Free Press reports that while the union may likely “bridge the gap” between Tier 1 and Tier 2 workers as far as pay goes during its talks with the Detroit Three — FCA US, Ford and General Motors — in September, the delegates want nothing more than the complete end to a scheme that was meant to be a temporary solution to keep the trio afloat through the darkest days of the Great Recession.
One delegate, Bill Parker of UAW Local 1700 in Detroit, went as far as to convince the 900-plus gathered inside Cobo Center to pass a resolution formally committing the union toward complete dismantlement of the two-tier system; the resolution did not pass:
Ending the two-tier wage and benefit relationship is something that we the delegates want to make abundantly clear coming out of this convention. Not as one of many things that have to be corrected, but as the issue that needs to be corrected.
As of this moment, 28 percent — 39,500 — of 137,000 hourly workers on the floors of the Detroit Three are under Tier 2, earning $15.78/hour with a raise to $19.28/hour after four years; Tier 1 employees — those hired before 2008 — earn $28/hour in comparison. FCA US holds the highest percentage of Tier 2 employees at 42 percent, with Ford and GM holding 29 percent and 20 percent, respectively.
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