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1st Gear: It's The Bad Years You Gotta Watch Out For
The legacy of the last round of UAW deals, mired in impending doom and obvious weakness, is a mixed one. On one hand, Detroit's automakers were able to shed some strangling legacy costs. On the other, we ended up with a two-tier system that left older workers paid extremely well and newer workers trapped with low wages — seemingly countering the entire point of a union (Solidarity, bro)
In the good years we've been having, with sales on the upswing and profits going with them, this isn't a fatal problem. But, as FCA CEO Sergio Marchionne pointed out yesterday, this isn't a great system: