Labor negotiations

Why does the UAW typically negotiate with companies sequentially rather than simultaneously?

Why did they negotiate simultaneously in this round?

Union Talks With Auto Makers to Focus on Tiered Pay
by: Christina Rogers
Jul 13, 2015
Click here to view the full article on WSJ.com

TOPICS: Negotiation, Unions

SUMMARY: A ritual called the "handshake" is expected to open talks Monday between the UAW and Detroit car makers, but the sides are bitterly divided over a pay structure the union says enriches the companies at workers' expense.

CLASSROOM APPLICATION: Instructions can use the article to present issues about union labor negotiations, specifically the effect of union wages on employment levels and union negotiation strategy.

QUESTIONS: 
1. (Introductory) In the current round of labor negotiations in the U.S. auto industry which of the Big Three auto makers is the UAW likely to negotiate with first?

2. (Advanced) Why is the two-tier wage system contentious? What is the effect of the system on the number of U.S. automobile industry factory jobs?

3. (Advanced) Why does Fiat Chrysler have a lower all-in hourly compensation than does GM and Ford?

Reviewed By: James Dearden, Lehigh University

Game theory