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Management Attitudes Toward Two-Tier Pay Plans

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Management Attitudes Toward Two-Tier Pay Plans

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Two-tier pay plans, under which new hires are paid on a lower pay scale than existing employees, have been used with increasing frequency in union-management contracts. The two-tier phenomenon appears to be associated with the wider concession bargaining movement that began in the early 1980s. In this study, management attitudes toward and forecasts about two-tier pay plans are explored by means of a questionnaire survey. In general, the management community is found to be optimistic about the spread and utility of two-tier pay plans in the near term. Managers in firms that actually have two-tier plans are more enthusiastic about their impacts than other managers. Over a longer term, however, the managers surveyed tend to believe that separate wage scales under two-tier plans will eventually be merged into a unified scale.
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... The purpose of this study is to examine employees' perceptions concerning the effects and purposes of a permanent two-tier wage structure in their employment setting. The empirical research that has concerned perceptions of wage tiers and their perceived effects on employment-related outcomes has involved managers (Essick, 1987;Jacoby and Mitchell, 1986). In order to make more informed bargaining decisions concerning tiers, negotiators certainly need to take into account the effects or problems that employees perceive are associated with such plans (Borum et al., 1987;Bowers and Roderick, 1987;Davis and Sleemi, 1989;Wessel, 1985). ...
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A Pioneering Pact Promises Jobs for LifeLifetime Employment, Lower Pay for New Hires Accepted Under IUE Pact at GM Packard Plant
  • John Hoerr
  • Dan Cook
Two-Tiered Wages: More Jobs vs. More Worker AlienationEmployers Win Big in the Move to Two-Tier Contracts
  • Jane Seaberry
The New Look in Wage Policy and Employee Relations
  • Audrey Freedman
The Double Standard That’s Setting Worker Against Worker A representative of the United Food and Commercial Workers Union argued that workers in the lower tier would “feel sold out before they even became union membersTwo-Tier Pay Plans Stir Debate
  • Aaron Bernstein
  • Zachery Schiller
The Two-Tier Wage System is DamagingMore Concerns Set Two-Tier Pacts with Unions, Penalizing New Hires
  • Archer Cole
  • J Roy
  • Jr Harris
Earnings and Other Characteristics of Organized Workers
  • U.S. Bureau of Labor Statistics
Employers Win Big in the Move to Two-Tier Contracts
  • Jane Seaberry
A representative of the United Food and Commercial Workers Union argued that workers in the lower tier would “feel sold out before they even became union members.” See Beth Brophy, “Two-Tier Pay Plans Stir Debate
  • Aaron Bernstein
  • Zachery Schiller
meetings of the Industrial Relations Research Association; Oral presentation of Marc Rosenblum, chief economist, Equal Employment Opportunity Commission, at the same meetings; Steven Flax, “Pay Cuts Before the Job Even Begins
  • H Malcolm
  • Liggett