Among the many changes being sought by striking United Auto Workers is an end to a system that pays workers much different wages for doing the same job. The biggest disparity is with temporary workers employed by the Detroit automakers who are making roughly half of what their co-workers bring home. The UAW says eliminating the uneven wage scales is a big priority because companies are abusing the system to save money. GM and Jeep maker Stellantis have made offers to increase temporary worker starting pay and Ford is offering to make temporaries full-time workers after 90 days of work.
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From office workers to delivery drivers, companies have become increasingly reliant on temporary workers. Automakers have used the lower-paid workers for years to fill in for absent and vacationing full-time employees and to staff up when production increases.Health care workers picket outside US hospitals in multiple states, kicking off 3-day strikeTiers for the Detroit automakers were created starting in 2007 as the UAW tried to help them out of serious financial troubles.
Under contracts negotiated in 2019, temporary workers reach full-time status at GM after 19 months of continuous employment and at Ford after two years. At Stellantis, maker of Jeeps, Rams and Chryslers, they get preferential hiring but no guarantees. Of the Detroit Three, Stellantis relies most heavily on temporary employees, who make up about 12% of its UAW workforce, or just over 5,100 employees. GM said its temporary workforce accounts for between 5-10% of its total union members while Ford is at about 3%.
Starting pay for Stellantis temporary workers is $15.78 per hour — less than some fast food restaurants — and caps out at $19.28 after four years. Workers in Toledo say there’s high turnover among temporary workers and that many left when Amazon opened a nearby distribution center and after a solar panel plant expanded its operations.
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