P&A Providers & Administrators
MenuMENU
SearchSEARCH

GM, Ford to Ask UAW for New Lower-Pay Tier in U.S.

March 24, 2015
2 min to read


U.S. automakers General Motors Co and Ford Motor Co are considering asking the United Auto Workers union to create a new tier of lower-paid union workers in their U.S. factories, Reutersreported, citing people familiar with the matter.


The UAW currently has a two-tier wage system, that includes top-paid $28-an-hour assembly workers and the lower-paid second tier, whose wages top out at $19.28.

Ad Loading...


The automakers would be pushing forth for a third tier wage system for certain lower-skilled jobs, Bloomberg said.


"For the 2015 negotiations, we're open to discussing many different solutions with our UAW partners that will allow us to continue to employ a competitive labor rate and add U.S. jobs and investment," Ford spokeswoman Kristina Adamski said in a statement.


Ford's hourly labor costs were $57, just behind GM's at $58. FCA's U.S. workers averaged $48 per hour.


A new pay rate for lower-skilled jobs would help the automakers bring down labor costs as they compete with Asian and European rivals that pay less at non-union U.S. plants, the report said.


GM and Ford have much higher labor costs than their cross-town rival Fiat Chrysler Automobiles, according to a study released just ahead of a meeting of United Auto Workers officials as they prepare for contract talks with the Detroit Three.

Ad Loading...


GM's U.S. auto workers on average earn about 21 percent more in wages and benefits than their counterparts at Fiat Chrysler, reflecting the much higher percentage of lower-paid, entry-level workers at FCA, according to a study of 2014 labor costs by the Center for Automotive Research.


"We aren't going to comment on potential topics in upcoming negotiations... we are committed to working with our UAW partners on solutions that will benefit employees and improve GM's competitiveness," GM spokeswoman Katie McBride said in an email.


UAW could not be reached outside business hours.

More Industry

Orange electric vehicle charging station.
Industry•by Lauren Lawrence•October 20, 2026

Charger Network Growth Slows

Despite a projected increase in public EV chargers in 2026, charging infrastructure remains a top concern for consumers as the gap between the most and least EV-friendly places remains substantial.

Read More →
Fan of $100 bills atop a white envelope
Industry•by Hannah Mitchell•October 13, 2026

Lenders, Consumers Take on More Auto Loan Risk

September records loosened credit access the most in over a decade as buyers took advantage of the conditions to afford trading, though loan applications fell.

Read More →
Red type R Honda civic parked on road.
Industry•by Lauren Lawrence•October 13, 2026

Next-Gen Hybrids in Sight

Dealerships can expect to see revamped hybrids from Honda next year as the company rolls out a new system and model lineup.

Read More →
Ad Loading...
Dodge ram emblem on orange vehicle exterior
Industry•by Hannah Mitchell•October 6, 2026

Gem State Stores Change Hands

A larger auto group founded in the industry’s early years sold two franchises to a neighbor group that's on a growth spurt.

Read More →
Graphic of model car driving on fake road.
Industry•by Lauren Lawrence•October 6, 2026

Charging In Motion

Honda has been researching wireless in-motion charging for electric vehicles since 2025, and new technology developments have put it a step closer to a final product.

Read More →
front grill of a Ford truck with blue Ford emblem
Industry•by Lauren Lawrence•September 30, 2026

Twin Cities Stores Sell

Minnesota-based Walser Automotive Group made what it called the most significant acquisition in its history with a three-rooftop deal in Minneapolis.

Read More →
Ad Loading...
Diesel engine on a production line in a factory
Industry•by Hannah Mitchell•September 29, 2026

U.S. Auto Sales Still Below Prepandemic Levels

Mobility Global industry observers don’t expect the market to return to the higher volumes that became routine before Covid but to stay well below its potential.

Read More →
Front of red tesla car.
Industry•by Lauren Lawrence•September 22, 2026

The Powertrain Shift

Electric-vehicle owners are backpedaling, according to new data, with product availability driving many to shift back to gas-powered engines.

Read More →
White BMW SUV driving on road.
Industry•by Hannah Mitchell•September 15, 2026

Achromatic Autos

The shades that dominate the U.S. car market don’t call attention to themselves, though grayscale may have plateaued after a 30-year upswing, research shows.

Read More →
Ad Loading...
Line of eclipse SUVs in parking lot.
Industry•by Lauren Lawrence•September 15, 2026

Used-Vehicle Affordability Worsens

Listing prices in August defied seasonal trends, rising above $27,000 for the second time this year.

Read More →