1. Review Chapter 7 in your Compensation textbook.

Instructions
1. Review Chapter 7 in your Compensation textbook.
2. Read “Your Turn: Two-Tier Wages,” pages 250 – 251 in your Compensation textbook.
3. Navigate to the threaded discussion below and provide the following information and answers in response to the four question areas posed in “Your Turn: Two-Tier Wages,” on pages 250 – 251. Use same headings (shown in bold below) in the initial post:
a. Extent of Job Growth. 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?
b. Sustainability of Approach. 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 that “Long term, (the system) is not a viable structure. It creates two classes of workers 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 two-tier structure? When would we expect any such drawbacks to materialize?
c. Use of Non-GM Workers. What about the use of non-GM workers at the Chevy Sonic plant? What might Mr. Marchionne think about that approach? How do you think the UAW and the workers it represents will react to Marchionne’s plan?
d. Summarizing the Pressures. Will the two-tier wage structure go away in the near future? Summarize the pressures to eliminate it as well as the pressures to keep it. Be sure to consider labor costs and productivity of workers and plants at other companies and in other parts of the world. You may wish to do some research on the new Volkswagen plant in Chattanooga, Tennessee. Also, consider that the Automotive News estimates that the Ford Fiesta (a competitor to the Chevy Sonic) plant in Cuautitlan, Mexico may have labor costs as low as $150 per vehicle.
4. Post detailed answers that demonstrate clear, insightful critical thinking. Each response should be 200-275 words in length and is to include a minimum of three sources properly cited and referenced: (a) the textbook, and (b) an academic journal article that is at least 3-5 pages in length and published within the last 3-5 years.
Newman, J. M., Gerhart, B., & Milkovich, G. T. (2017). Compensation (12th ed.). New York, NY: McGraw-Hill Education.