What types of companies are most likely to utilize two-tier wage systems?
A)unionized firms
B)sales firms
C)public sector companies
D)private sector companies

Question

Quizplus · Accepted Answer

Two-tier wage systems are often utilized by unionized firms as a way to negotiate wage concessions with the union. This system allows the employer to hire new employees at a lower wage rate, while continuing to pay higher wages to existing employees who are protected by the union contract. This helps the employer to reduce labor costs and remain competitive while also maintaining the current wage rates for existing employees.

What Types of Companies Are Most Likely to Utilize Two-Tier