Two-tier wage systems were designed to reduce the adversarial "win-lose" attitude between labour and management when negotiating the compensation provisions in labour contracts.

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Two-tier wage systems were designed to create a more cooperative relationship between labour and management by offering different compensation packages to new hires and existing employees. This allowed for new employees to be hired at a lower wage, reducing labour costs for the company, while existing employees would continue to receive their current pay. By doing so, the system aimed to avoid the adversarial "win-lose" attitude that often arises when negotiating compensation provisions during labour contract negotiations.

Two-Tier Wage Systems Were Designed to Reduce the Adversarial "Win-Lose