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This page contains all of the posts and discussion on MemeStreams referencing the following web page: Two Tiers, Slipping Into One. You can find discussions on MemeStreams as you surf the web, even if you aren't a MemeStreams member, using the Threads Bookmarklet.
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Two Tiers, Slipping Into One
by bucy at 1:34 pm EST, Feb 26, 2006 |
"It's a good term, 'grandfathered,' because those folks were preserved at a wage-and-benefits level that was essentially twice the market," Mr. Glynn said. Already, 50 percent of the upper-tier workers who were around in 2004 have left, through retirement and attrition. New hires are encouraged to view assembly-line work as short term. The way up from the admittedly meager wage scale is not a better union contract, the message goes, but a promotion — if not within Caterpillar, then at another employer. Driving a forklift or working on an assembly line for 20 years should not be a career goal.
I wonder why labor doesn't try asking for profit sharing instead of wage hikes. |
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RE: Two Tiers, Slipping Into One
by dmv at 11:15 am EST, Feb 27, 2006 |
bucy wrote: I wonder why labor doesn't try asking for profit sharing instead of wage hikes.
This is one of the points on an NPR show last week, talking about aviation. One of the problems for management is that the top executives compensation -- as in most industries -- is tied to performance. When the stock does well over some quarter or year measure, their compensation reflects it (grossly, sometimes); when it goes otherwise, it gets less reported. Labor unions, across the board, are interested in fixed, steady wages... like pensions versus 401ks. Part of this is based on the pay scales -- having a 25% cut based on corporate performance is a lot less significant when you're taking in 400$K/year instead of 20$/hour. Part of this is based on the union being separate from the company -- they control the assets of their members tied to the contracts; performance bonuses are harder to control. Part of this is a general conservatism that occurs in any larger social body; risk-takers don't form these kinds of groups, so the bias is toward playing it safe. JetBlue and Southwest both have significant profit sharing programs. |
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