Word: tiered
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Dates: during 1980-1989
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...largest carrier in the U.S., United faced its first pilots' strike since 1951. The issue that divides the airline and the people in the cockpit goes beyond a dispute over salaries or fringe benefits. At stake is a so- called two-tier wage system that would put new employees on a different pay scale from present ones. Under the United proposal, the starting salary for new pilots would drop from $22,452 to $21,600. In addition, newly hired pilots would remain on lower pay scales for the roughly 20 years that it takes to reach the rank of captain...
...tier salary agreements are becoming widespread in U.S. labor contracts. Among airlines, the plan is now used at American, Frontier and Piedmont. Those airlines complained that because they paid much higher salaries, they could not compete against new, low-overhead airlines like People Express. In 1983, labor costs represented 37.5% of American's operating expenses, as compared with 20% for People Express...
United pilots argue that the proposal could cause troubles in the cockpit. Joseph Leroy, a 727 captain, says the two-tier system would bring "great dissension" because people would be getting different pay for exactly the same work. Says he: "The cockpit depends on mutual respect and trust. We cannot afford that kind of trouble." The pilots also cite a long list of wage and benefit concessions they have made over the past several years. Finally, the pilots point to the airline's 1984 operating earnings of $564 million. It was United's most profitable year ever...
...competitive airline industry, however, highflyers often suddenly crash to the ground. United Chairman Richard Ferris insists that his airline ; cannot afford to fly without a two-tier wage policy. Although pilots have not traditionally staged long walkouts, both sides last week seemed to be digging in for a tough fight...
Many "women's" jobs have historically paid less than "men's" jobs. But correcting these differentials through comparable-worth rulings will substantially alter the workings of the labor market, allowing theoretical calculations and arbitrary rulings by a new tier of bureaucrats to supplant the forces of supply and demand. The U.S. Commission on Civil Rights last month rejected comparable worth, saying it would lead to "a radical reordering of our economic system." Nevertheless, it has already been adopted, at least in principle, by Minnesota and New York. In addition, studies are under way in 25 other states to determine...