Assessing Worker Attitudes under a Two-Tier Wage Plan

Peter H. Cappelli · Peter D. Sherer

38 citations0/0 files storedIndustrial and Labor Relations Review

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Labor Movements and Unions Labor market dynamics and wage inequality Job Satisfaction and Organizational Behavior

Abstract

This study examines data from a 1985 survey of employee attitudes at an airline that had introduced a merging (or temporary) two-tier pay plan the year before. The authors find, contrary to popular wisdom, that lower-wage ‘B’ tier workers felt significantly more satisfied with their pay, work, and supervision, more optimistic about future pay, more confident of their job security, and more committed to the company and union than ‘A’ tier workers. The authors suggest that ‘B’ tier workers have lower expectations than ‘A’ tier workers, partly because of their self-selection into jobs with reduced starting wages and partly because of the reference groups with which they evaluate their situations, which differ from ‘A’ tier workers' reference groups.

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References

1984Research in Organizational Behavior 1979The measurement of organizational commitment 1973Male-Female Wage Differentials in Urban Labor Markets 1963Towards an understanding of inequity.1984Employee-Organization Linkages: The Psychology of Commitment, Absenteeism, and Turnover.1949Industrial and Labor Relations Review 1983Age-related differences in work attitudes and behavior: A review and conceptual analysis.1968The Encyclopedia of Philosophy.

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2001Assessing the Decline of Internal Labor Markets 2005Wage comparisons with similar and dissimilar others 1992Pay, Performance, and Participation 1991Internal and external referents as predictors of pay satisfaction among employees in a two‐tier wage setting 1996TO LEAD, LAG, OR MATCH: ESTIMATING THE FINANCIAL IMPACT OF PAY LEVEL POLICIES 2012Changes in psychological contracts during the global financial crisis: the manager's perspective

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