Weeks after UPS drivers won an end to a widely criticized compensation system, Detroit autoworkers want an overhaul of their own.
— General Motors, Ford and Chrysler-maker Stellantis. The union says the arrangements leave many employees with steeper climbs up the wage-and-benefits ladder than some of their colleagues.at the nation’s biggest package carrier this summer, fueling expectations that the UAW effort could generate pushback against staggered pay elsewhere.
At UPS, critics of the discontinued pay system said it created second-class positions in which some workers with a wider range of responsibilities earned less than those with narrower roles.
David Whiston, a Morningstar analyst who covers the Big Three, said the automakers may also be looking to maintain a tool for developing and retaining talent. The union is aiming “to collapse the lower-paid classifications and accelerate the progression of people from being an entry-level [to] being a mid-level and senior worker,” said Patrick Anderson, principal and CEO of the Anderson Economic Group, which has worked for GM and Ford.
After the Great Recession, tiered pay and benefits regained steam as unemployment climbed and workers’ bargaining power eroded. UAW workers hired after 2007, for example, are granted 401s instead of defined pensions. “But unions figured out pretty quickly that it destroys the union,” she said, and have recently begun using the issue as a rallying point to call for greater solidarity. One factor in this summer’s campaign at UPS was that full-time drivers — who are some of the best paid in the industry — worried the split structure eroded the integrity of their work.
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