Apparently many early(a) unions and employees are opposed to two-tier wage systems in any form. separate companies like United are creating raw(a) divisions in order of battle to increase competitive advantage by cutting be through two-tier wage systems. United recently announced a new short-haul airline named Friendship Express. The new company prone to shorter routes will pay its workers 30% less than Southwest Airlines, phasing them in to reach current Southwest wages over eight years. This move is an effort by the company to be more than competitive with low-cost Southwest Airlines. Unions have informed members much(prenominal) a move will create over 10,000 new jobs while also preventing lay-offs at United. Thus far unions have not rejected the proposal.
Many unions, however, are opposed to two-tier wage systems. American Airlines has also been negotiating with unions to implement a two-tier wage system.
A regressive new-hire pay scale has been negotiated at American Airlines. temporary hookup many unions have accepted two-tier wage systems in military position of wage cuts for already employer members in situations where employers unarguably need relief, critics bill that American Airlines with over a billion dollars in coin is in no such need, "The
Meyers, M. Despite unpopularity with workers, two-tier pay systems persist. Minneapolis Star Tribune, Feb 6, 1998: 01D.
Anonymous. United plans two-tier wages. Capital Times, Oct 27, 1993: 5B.
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