Depression economics

Posted: 8 October 2010 in Uncategorized
Tags: , , , , ,

According to the New York Times, the United Auto Workers union has agree to a two-tier deal, thus cutting the wages of hundreds of workers at a General Motors assembly plant.

G.M. will pay 60 percent of the plant’s 1,550 workers the going wage of about $28 an hour, and the remainder of the workers about half as much — or $14 an hour. While the U.A.W. had previously agreed to lower wages for new hires, some of the second-tier workers at the Orion plant could be among current G.M. employees called back from layoff.

The UAW giveback is one of the effects of the reserve armies of the unemployed and underemployed in the current post-recovery depression.

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