Detroit has always been known for its tough labor disputes between the corporate execs and the United Auto Workers Union. In fact, it took the automakers years to win a two-tier pay structure out of the unions hands. Now, all of that could be reversed. For a great deal on a car go to used cars for sale in Charlotte .

Sergio Marchionne, the current CEO of Chrysler, recently stated that he would like to see all the workers on the same pay scale. His statements have caused the UAW to question what might happen in 2015.

The two-tier system has long been unpopular in the ranks of the UAW and many have wanted to get rid of it. The measure barely passed in 2007 as a means to help the auto industry weather what was going to difficult financial times. In the market for a used vehicles? Come to used car dealers in Raleigh for a huge selection you will love.

Despite everything, Detroit has found ways to improve productivity while decreasing the number of employees. Major manufacturing plants only require about half the staff they once did, sometimes losing over two thousand employees in one plant. Hours are down as well, with some jobs needing less than 20 hours a week. The UAW sees all of this and has serious concerns about where the industry is heading.

New hires, about 13% of Chrysler’s work force, make around $25 per hour. Chrysler’s veteran force of around 26,000 workers each make close to double that. Before the last agreement was ratified in 2007, veteran employees were making around $76 an hour, including benefit costs. The cost of labor was taking its’ toll on the automakers and the union knew that something had to give, so they passed the two tier system.

It slowly began to work. For the first time in a long time, Chrysler posted a profit this quarter of around $212 million. Much of this profit is being attributed to reduced labor costs. The UAW, however, looks at this money and claims that Chrysler can afford to do more for the workers. Simply put, when going into contract talks with auto manufactures, the UAW knew more money was more or less not going to happen, so they pushed for smaller gains like signing bonuses and funds to help offset inflation. In the end the UAW had to settle for a $3 dollar wage increase for new hires even though UAW President Bob King clearly believes that workers on the second tier were not “making a living wage,” as he called it.

Marchionne himself stated during a press conference that, “This economic disparity between people on the line is not something that can go on indefinitely.” That being said, everyone knows the two-tier system won’t go away without some major concessions from the UAW. The question everyone is asking is, what will Marchionne ask for in return?

No one really knows, but speculation ranges from decreased benefits for veteran employees to more of a profit sharing based wage system. This would allow employees to make more money when times are good, but help the company save money during down times.

The unions will be reluctant to do this, and it remains to be seen if they will, but at least it seems like there is room for some common ground.

In the market for a used vehicles? Come toused cars Louisville for a deal you will love.

Related Articles:

1. Are Pay To Click Opportunities Worth Your Time And Effort One of the leading online marketing fads that right now pulls in a lot of beginners is to start with Pay-to-Click Sites (PTC). That's what I did. But before I proceed, in case you don't know how these sites work, allow me to explain further. With a pay to click...
2. Online Employee Scheduling: The Software That No Business Can Do Without If you are interested in the best tools you can use to manage the schedules of your workforce today, you should definitely research online employee scheduling services. These services can assist managers in the process of scheduling employees work hours. The following article will discuss the reasons why this particular...
3. 4 Steps to Obtaining a Home Loan In the near future, you might be considering purchasing a home. Something you've already thought of, then, is both searching out that perfect home, as well as putting an offer on it. If you don't have enough money to buy a home with full-out cash, the offers sellers take most...
4. The MKX From Lincoln Is Great On Gas Plus Its Affordable Most midsize SUV's don't offer great gas mileage but the MKX from Lincoln does. In addition, it also offers all of the luxury amenities that you would expect from Lincoln. Of course all of those deluxe touches come at a cost; the MKX is priced significantly higher than the Edge....
5. Rabies is an extreme virus-like disease. Rabid creatures typically stop eating and drinking, and may seem to would like to be left alone. Simply because it is usually deadly, rabies should be considered especially hazardous. Consequently, it's important to prevent exposure to the actual rabies virus at all costs. In Europe the virus is usually transmitted...