Chrysler CEO Sergio Marchionne has said that he hopes to end the automaker's two-tier wage structure in the company's next round of labor talks with the United Auto Workers. According to Automotive News, Marchionne said that the current system creates two classes of workers and that it isn't viable in the long term.
The CEO went on to say that the program is currently undermining efforts to make Chrysler and Fiat work together as a single entity. Ideally, Chrysler would have a single wage set that recognizes the level of worker involvement in generating profits for the company.

As Automotive News reminds us, domestic manufacturers won the right to pay entry-level workers a lower wage in 2007. UAW President Bob King has already made waves about doing away with the two-tier pay system, and Marchionne says that his views are consistent with those of the union leader. King said that the union originally left a one-tier system to help save domestic automakers, but now that Ford, General Motors and Chrysler are beginning to look healthy once again, workers want equal pay.


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  • 18 Comments
      Bret Frohwein
      • 3 Years Ago
      As tough as he can be. I really do like this guy. Plus he seems to be a genuine car-guy. Time till tell I suppose. it would be nice if Chrysler got profitable to the point where new workers could earn a wage where they can actually afford to buy the cars they put together.
      ReTired
      • 3 Years Ago
      "There is one rule for the industrialist and that is: Make the best quality of goods possible at the lowest cost possible, paying the highest wages possible." Henry Ford Though the man has been admired for his industrial creativity and sound leadership, his philosophy - that made Ford Motor Corp. a business leader - has largely been abandoned. The idea he had that his workers should be paid wages that would allow them to purchase the products they make has been discarded in the quest for personal wealth and privilege. Mr. Ford was not a "Socialist", but he had a good idea of where his customers came from, and did his best to encourage and enable them to enrich his business. There should be more like him today.
      redgpgtp97
      • 3 Years Ago
      Definitely agree with this guy. Why would you want to work for half of what someone else is doing just because he has more time on the job? I think the pay should be equal after say 2 years on the job, not 20. Senority should allow for folks to have the option to pick better job and shift preferences, but pay should eventually be equal.
      Fancy Sauce
      • 3 Years Ago
      What tier does he want them to all be on, the higher or the lower pay tier? I can't imagine he is wanting to pay workers more so would he want to average the pay out and pay everyone the same?
      aerosoul98
      • 3 Years Ago
      In the old system you started at 70% and received a 5% progression every 6 months. You MBAs can figure out how long that took. Recently you started at $14.80 and stayed there forever. Now you start at $15.78 and gradually move up to $19.28 over 4 years. I'm Sergio wants all the UAW guys at $19.28 and not move all second tier guys up to $28.05.
      guyverfanboy
      • 3 Years Ago
      Good to know he cares about the workers. :)
      q3a7vodk4
      • 3 Years Ago
      What tier is machione on? Does he make hundreds of times what the line workers make? Maybe the fact that CEO pay is on average 500x what their employees make is what is untenable.
        kevsflanagan
        • 3 Years Ago
        @q3a7vodk4
        Thats in the US. Other countries its either close to same or very different. Though sadly I can't remember how much Marchionne makes.
        Danaon
        • 3 Years Ago
        @q3a7vodk4
        Sounds pretty ignorant. The CEO is 500x more important to the shareholders than any factory worker. Public corporations are there to deliver returns to shareholders.
      kevsflanagan
      • 3 Years Ago
      I'm still dumbfounded by this. I can understand that a base starting pay be equal but why would anyone wish that the person next to them on the line who is brand new first week on the job is making the same as them who has worked there for over 10 years? Am I missing something here folks?
        guyverfanboy
        • 3 Years Ago
        @kevsflanagan
        Obviously not going to start at the same pay as someone who is topped out. That's what pay raises are for.
      sinistro79
      • 3 Years Ago
      It's anti-American to create a single class system for wages. Italy and Canada, the two cultures from which Marchionne shares his heritage, have a history of socialized work ethics that I do not believe translate well into the American labor landscape. Efforts like this across the American landscape will chisel away at our middle class until everybody is poor. I think that the workers should fight to keep their current system and that hard work should determine who is allowed entry into the more lucrative tier. Down with Communism! Down with Socialism!
      darkness
      • 3 Years Ago
      Waiting for a broke no job college degree AB All Star to chime in.........
      sand2020
      • 3 Years Ago
      He doesn't want the legacy workers making $30+ an hour and new workers making $16 an hour. All that does is start class warfare. I have no idea what the solution is other than as the older employees retire and are replaced by new lower paid employees it will work itself out.
      • 3 Years Ago
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