Question

To what extent is the renewed job growth in the automobile industry in the United States due to the use of the two-tier wages?

Answer 1

Two tier wages: is a kind of the remuneration structure in which one group of workers are generally paid less (lower wages) than the other group of workers. By this way equal wages for equal pay law is violated.

The employees are more productive are paid more than the lower productive employees.

Here are some outcomes of these consequences-

If an employee is getting high salary because of his experience and that to without changing or increasing the overall compensation then it becomes burden for the organization.

New Employees are hired without much cost weight to the organization.

There is a important contribution of this approach to re-establish the development of automobile industry as the decrease in the work costs per auto permitted a huge putting something aside for the car organizations. This saving amount can be utilized to get new market share by doing promotional activities and it will generate sales and profitability for the company.