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Your Turn: Two-Tier Wages.

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Renewed job growth in the automobile industry in the United States has significantly prospered in lieu of two tier wages. Also hiring employees from an outside supplier, or also known as contract employees, frees up time for the tier 1 employees, having contract employees doing simpler more time consuming work and allowing skilled workers focus more readily on the design and build work. The two tier approach has been very sustainable, and more profitable for the automotive industry especially GM. Implementing lower wage employees who are able to do more of the running, simpler tasks and tool work that is directed by a mentor usually tier I employee. Along with the two tier system, manufacturing was streamlined. Two tier wage system has helped build and develop streamlined GM by how they work with their suppliers, how they keep their inventory management trimmed, and they manage a just-in-time inventory where assembled parts are removed from the delivery trucks and placed on the line immediately and delivered to right to production for immediate use. (Smith, 2015). In response to Mr. Marchionne not liking the two tier wage system, stating that it doesn’t work while he is trying to get his organization to work in a unison manner, it turns out that Mr. Marchionne really wants to lower the wages for all tier I employees, while slightly bringing up the wages for the tier II employees or contract employees, thereby making all employees the same wage. The problem with his plan is it divides the generations. It divides the real tradesmen and no skill people. Under Marchionne’s plan all workers would earn the same hourly wage, however, his way is not a fair wage for the level of talent hired. He has compensated for this by implementing an alternate work schedule, rotating employees around away from a standard work week. He had them work through the weekends and then

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