The Growing Divide Between Rich and Poor UAW Members: General Motors has struck a deal with a UAW local requiring that only 60 percent of workers building the new subcompact Aveo be paid the traditional $28 an hour. The rest will make "Tier 2" wages "equal to roughly half that of so-called legacy workers."
The wage agreement is expected to reduce GM's labor costs enough that the automaker can make a profit on the small car, [UAW local shop chairman Mike] Dunn said.
“It's an integral part of the plan,” he said.
Hmm. a) This reinforces the suspicion that the UAW is now in the business of exploiting new workers in order to maintain the unsustainable wages and benefits of the now-privileged "legacy" workers.
This strikes me as a variant on Adam Smith's notion that men of the same trade can seldom meet except to conspire against the public or raise prices. Only in this case, it's those new UAW workers bearing the cost.
The real big three in the country are Labor, Government, and Business. Don't be fooled by the labels, they all seem to be in the same trade these days.