The potential drawbacks of a tow tier structure

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To the degree job growth (and increased car sales that come from more competitive labor costs) is based on two tier wage structures, how sustainable is this approach? Consider, for example, that Fiat and Chrysler CEO Sergio Marchionne stated the “Long term (the system) is not a viable structure. It creates two classes of worker within the plant. It doesn’t work in the same direction we are working … to get this organization to work in unison why would Mr. Marchionne make this statement? What are the potential drawbacks of a tow tier structure? When would we expect such drawbacks to materialize (Compensation text book eleventh edition. Chapter 7 "your turn" two tier wages question number 2)

Reference no: EM131031749

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