Biggest U.S. Automakers Said to Study Lower-Pay Tier for UAW

U.S. automakers General Motors Co. and Ford Motor Co., heading into negotiations with the United Auto Workers union, are considering asking to create a new tier of lower-paid union workers in their U.S. factories, people familiar with the matter said.

This new pay rate for some lower-skilled jobs would help the car manufacturers lower labor costs as they compete with Asian and European rivals that typically pay less at non-union U.S. plants, said the people, who asked not to be identified discussing private plans.