operations-management Essay To the degree job growth (and increased

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 state that “Long term, (the system) is not a viable structure. It creates two class of workers witin 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?

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