GM, Ford said to be mulling over new tier of lower-paid US workers

Southfield, Michigan

US carmakers General Motors Co and Ford Motor Co, heading into negotiations with the United Auto Workers (UAW) union, are considering asking to create a new tier of lower-paid union workers in their US factories, people familiar with the matter said.

This new pay rate for some lower-skilled jobs would help the car manufacturers lower labour costs as they compete with Asian and European rivals that typically pay less at non-union US plants, said the people, who asked not to be identified discussing private plans.