Having a two-tier wage has allowed automobile companies to reduce labor costs without having to cut employees. Having the lower pay has allowed the companies to close the gap with foreign car makers. The two-tier wage has allowed the employment to dramatically increase in Detroit’s automobile industry (Vlasic, 2011). A two-tiered structure does not treat all employees the same. Essentially, two employees are doing the same job, one is making significantly less than the other one. According to the United Electrical, Radio and Machine Workers of America (UE), workers who receive the lower wage resent their employer (Gish, n.d.). The employees lose respect because they are making less money for performing the same duties. Employee discontent can lead to a high turnover rate. This could prove to be more costly in the long run. Employees can feel resentment to their fellow employees (those who make more) because they are not being treated fairly. New workers can feel resentment towards the senior workers. This can lead to either and unstable or hostile workplace, which in turn, can hinder productivity (Gish, n.d.). Sergio Marchionne believes that people should be paid the same wage for the same work. He believes that it is impossible, and offensive to the lowest paid workers. He wants to freeze veteran workers wages and offer less-senior workers more profit sharing potential. He wants to create a lower, performance based pay scale. Currently tier II employees earn a base wage of $28/hr, Marchionne wants to bring the wage down to around $20/hr. In 2009, Marchionne said that workers had to give up their “culture of entitlement” and accept a “culture of poverty” (Jones, 2015). Senior employees have been stating that they are upset for not receiving a pay raise in almost ten years. According to UAW Local 598 President Ray Gorney “At that rate of pay you can’t raise