3. Large companies across the country have moved toward two-tiered wage structur

Question

3. Large companies across the country have moved toward two-tiered wage structures for their union employees. The following website documents what has happened with a prominent company in Wisconsin since they have moved to the structure: http://www.jsonline.com/business/kohler-says-elimination-of-two-tier-wage-system-also-would-result-in-elimination-of-jobs-b99623301z1-353834981.html Answer the following questions related to the two-tiered concept:

a. What does the company argue would likely happen to jobs in the location if indeed the two-tiered structure were eliminated?

Explanation / Answer

If indeed the two tiered structure were eliminated the company thinks this will lead to increase in relative cost of this manufacturing site. Already competitors have moved into other locations and even this plant is most costly for the company. Thus company argues that jobs will be cut if two tier structure was eliminated

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