To the degree job growth (and increased car sales that come from more competitiv

Question

To the degree job growth (and increased car sales that come from more competitive labor costs) is based on two tier-wage structures, how sustainable is this approach? Consider, for example, that Fiat and Chrysler CEO Sergio Marchionne state that "Long term, (the system) is not a viable structure. It creates two classes of workers within the plant, It doesn't work in the same direction we are working ... to get this organization to work in unison." Why would Mr. Marchionne make this statement? What are the potential drawbacks of a two-tier structure? When would we expect any such drawbacks to materialize?

Explanation / Answer

usually the basic presumption is that people who are doing the same work should pay equal pay, it is the main objective of uniounism in any nation. but it may not possible always to implement. suppose if there are senior workers doing the same for years together, and the new joinee recently joined as a worker, we can not offer same pay to both. so, in this case we can not implement the equal pay system to all.

here the words of CEO means that, if we offer two kinds of wages to two kinds of people for the same work, it wont works. the workers may not accept it and it show impact on their performance. so, it is better to follow single pay structure.

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