Two Tier Wage Systems

Labour Relations

The purpose of this paper is to examine in more detail the nature and scope of two-tier wage systems in a Canadian context. The plan of the paper is as follows: first, it will examine the form which two-tier settlements have taken and provide some data on their prevalence. Second, it will examine possible legal implications of two-tier agreements, and in particular, whether a union which agrees to a lower wage rate for new hires risks violating its duty of fair representation. The final section assesses the long-term viability of two-tier wage systems.

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