Detroit Emulating Japan May Nudge UAW Into At-Risk Pay for 107,000 Workers
When contracts between the United Auto Workers and General Motors, Ford and Chrysler expire this September, negotiations may be around implementing a new payment system based on the Japanese. The changes might lead to workers receiving lump-sum payments and bonuses, at least partly tied to the company's performance, rather than guaranteed pay increases each year. The UAW has said that it expects workers to be compensated for the cuts they took in the last 5 years to keep the companies afloat, citing pay and benefits cuts as examples. While some question whether profit-sharing based on performance will be attractive to autoworkers, they also cite the pressure the UAW is under to keep labor competitive with Europe and Asia.
See "Detroit Emulating Japan May Nudge UAW Into At-Risk Pay for 107,000 Workers", Keith Naughton and Tim Higgins, Bloomberg News, March 20, 2011