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Your Sept. 13 front-page article "Two-Tier Pay Now the Way Detroit Works" recounts how having two wage tiers — a regular higher one and a lower one for newly hired workers — can significantly reduce labor costs and lead to revival in the auto industry, where these arrangements have been agreed to by the United Auto Workers and the Detroit Three (General Motors, Ford and Chrysler).
Those seeking an alternative to the Raise the Wage Act have embraced legislation led by Rep. Terri A. Sewell (D-Ala). that would assign one of five wage tiers to each U.S. Census-designated metropolitan statistical area according to federal price data.
Working in an area that has a formal licensing procedure will usually require obtaining a license to progress into the higher wage tiers as an electrician.
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Management has also proposed a lower wage tier for new workers.
Officials knowledgeable about the negotiations said the union had agreed to a lower wage tier for new workers.
Current workers are paid twice that amount, which, including benefits, costs G.M. about $45 an hour more than those at the lower wage tier.
Several Pavilions workers said they were upset that the tentative accord included a lower wage tier for new workers, fearing that it would endanger their jobs.
Under the new contract signed by the three grocery chains, Safeway, Kroger and Albertson, new workers will have a lower wage tier and, unlike current ones, will have to begin paying $450 a year in health insurance premiums.
With a tentative deal reached to end a 138-day dispute involving 59,000 supermarket workers, many union members complained Friday that the settlement gave no raises and meant a lower wage tier and skimpier health plan for new hires.
[A1.] Grocery Dispute Is Settled Many union members complained that a tentative agreement reached to end a dispute involving 59,000 supermarket workers gave no raises and meant a lower wage tier and skimpier health plan for new employees.
The dissidents say those layoffs are reason enough to reject the contract, but they also dislike provisions creating a lower wage tier for newly hired employees and allowing Ford to fund a new retiree health care trust largely with stock and a secured note, instead of primarily with cash, as at G.M. and Chrysler.
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