Assignment task: The case study titled 'Two-Tier Wages' (pp. 246-247) and review the questions at the end of the case.
1. To what extent is job growth due to two tier wage structures and how sustainable is this approach.
2. How will labor costs and productivity of workers influence the long-term effectiveness of the two tier wage structure?
3. How do you think the UAW and the workers it represents will react to Mr. Marchianne's plan?
References
Newman, J. M., & Gerhart, B. (2020). Compensation, thirteenth edition. The McGraw-Hill Companies, Inc.