Two-tier wages came around first time in 1983. The airline industry was the first one to introduce the pay structure (Smith, 2021). The idea behind two-tier wages is that two different salaries will be provided to two foreign contracted workers. Employees who work for a short period would be paid less than those who work for a longer time and permanently. Employers argue that it is the best they could offer due to the tight economic situation. Many organizations have adopted the two wages tier system. Some of the organizations are Ford, Chrysler, and General Motors (Press, 2018). They all approach the United Worker Associations to make deals with the labor unions.