2 Tier Agreement

Since the 1970s, the unions have accepted all sorts of agreements they once rejected, with concessions littering contracts and leaving a trace of the decline of the working class. For decades, two-tier unions have been at the heart of the assault on workers` rights. According to the Teamsters` proposal, the maximum compensation for subordinate hybrid drivers would be $6.40 less than for regular parcel truck drivers, including Sunday work. Ron Kaminkow, a member of the railway crew, remembers bitter resentment between train drivers. Members hired prior to a two-stage agreement received a full daily wage if they did not receive a train on their return journey. But members who were hired in second place were only paid for their actual hours of returning by public transit. UPS has no excuse for low profits. What it has is a position as the largest company in the parcel delivery industry, closely followed by FedEx. Such control over a market gives the company the confidence to try to determine the cost of labor. UPS executives cannot put forward the arguments they have made in the automotive industry. Instead, they act on the basis of the continued decline of working class power, betting that the union leadership will take what it can get and the rank and file will accept it.

Like the automobile before them, UPS is playing the game for the long term, looking to gain a foothold in economic times so that it can expand the model on two levels as things move south. In September, Nabisco workers ended a week-long strike after successfully opposing several proposed changes, including a two-tier benefits system that would have provided inferior but more expensive health services to new employees. Neither Nabisco nor its parent company Mondelez International responded to a request for comment. A two-tier wage or benefit system can also impact the power of unions, as new employees may be less inclined to join, resulting in fewer union members and a divided workforce. Existing workers also fear that the introduction of such a system will affect their future contracts, which could be subject to the lower conditions. “Within a few years, two levels had become three and the A-list guys were sitting at home, while the B and C guys were working for less,” said Walter Taylor, a member of Local 814. That`s when we made a list of reforms and took over our restaurant. “They told us, `This doesn`t affect you,`” said Bill O`Bayley, a retired former food storage teammate.

“We didn`t know we were cutting our throats. Two-stage contracts hurt everyone. Just say NO. You will save yourself a lot of grief. At Kellogg, employees granted a one-time concession in 2015, allowing the company to temporarily introduce a two-tier system with tight caps on the number of employees who could be considered a transition or legacy. Now the workers are saying that kellogg wants to make this concession permanent, which they don`t want to do. Once employers introduce a two-stage contract, it`s really hard to cancel it. In contract negotiations, all your bargaining power is used to reverse the damage and bring the subordinate members to the top. Nine weeks after 1,400 Kellogg`s workers went on strike for a fair contract, workers voted on Dec. 7 to reject the latest tentative agreement. Workers are striking at factories in Michigan, Nebraska, Pennsylvania and Tennessee, resisting the two-tier system that divides workers by undermining the wages and benefits of new employees. According to the preliminary agreement, UPS wants to create a new class of hybrid drivers. Sundays and Saturdays would likely be part of these drivers` work weeks, a response to pressure from online ordering giants like Amazon.com.

(Amazon CEO Jeffrey P. Bezos owns the Washington Post.) According to the draft, these drivers will not have some of the rights that current drivers enjoy, such as . B their say in planning. They are paid much less than their peers, with a cap on their salary of $34.79, compared to $40 for standard drivers. Your commercial relocation employers reduce costs by not making contributions to second- and third-level employee benefit funds. Two-tier contracts can also hurt our pensions and health benefits – another lesson local 814 members learned the hard way. A two-tier workforce can be created when public sector employees (local government, NHS, etc.) are transferred to the private sector (a for-profit business) and new employees receive worse wages and working conditions than workers transferred from the public sector, resulting in two wages and working conditions. General Motors Co. and the United Auto Workers agreed to a two-tier system in 2007 to increase the automaker`s competitiveness vis-à-vis foreign companies — though this became a survival mission when the trough fell out of the economy a year later.

The tiered structure, which allowed new employees to be paid half the rate of more experienced workers, angered many UAW members and was stripped of the contract after a six-week strike in 2019. Binder is right to worry. As Michael Hiltzik wrote in the Los Angeles Times, “From the employers` perspective, the two-tier system offers the added dividend of weakening the union by carving a wedge in workers` solidarity.” â The easiest stage, either all current workers at the time of contract negotiations, or a subset of older workers, retains the benefits that the company has long granted them. .