SOUTHFIELD, Mich. – General Motors and Ford, heading into negotiations with the United Auto Workers union, are considering asking to create a new tier of lower-paid union workers in their U.S. factories, people familiar with the matter said.
This new pay rate for some lower-skilled jobs would help the car manufacturers lower labor costs as they compete with Asian and European rivals that typically pay less at non-union U.S. plants, said the people, who asked not to be identified discussing private plans.
The UAW has said it wants raises for both its top-paid $28- an-hour assembly workers and the lower-paid second tier, whose wages top out at $19.28. The union, which abhors different wages to members doing the same job, is already considering pushing to eliminate the second tier, said a person familiar with the leadership’s thinking.
Asking for a lower-wage third tier could be a tough sell with union negotiators at a time of growing disparity in U.S. incomes. UAW leaders are already under pressure from their 80,000 auto-making members to eliminate the second tier or at least get them a raise. Paying less to union members – even newly hired workers – isn’t on the UAW’s agenda.
