Factories Hiring:New Workers Face Lower Wages, Less Job Security
Manufacturers are hiring again in the United States, softening a long slide in factory employment. But for a new generation of blue-collar workers, even those protected by unions, the price of employment is likely to be lower wages stretching to retirement.That is particularly true of global manufacturers like General Electric. With labor costs moving down at its appliance factories in Louisville, the company is bringing home the production of water heaters and some refrigerators, and expanding its workforce to do so.Wages for the new hires, however, are $10 to $15 an hour less than the pay scale for hourly employees already on staff — with the additional concession that the newcomers will not catch up for the foreseeable future. Such union-endorsed contracts also are showing up in the auto industry, at steel and tire companies, and at manufacturers of farm implements and other heavy equipment, according to Gordon Pavy, president of the Labor and Employment Relations Association and, until recently, the AFL-CIO’s director of collective bargaining.
Read more here: http://www.kentucky.com/2012/01/02/2013278/louisvilles-ge-plants-exemplify.html#storylink=cpy
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