Pros

In theory, two-tier wage bargaining structures could reconcile macroeconomic stability with a closer link between productivity and pay.

Two-tier bargaining structures may be rationalized as an intermediate step toward greater decentralization in wage setting.

In theory, the two-tier structure should allow for a higher frequency in wage renegotiation in response to shocks.

A two-tier structure can work if plant-level bargaining, if any, prevails over the national level, and wage floors are provided by statutory minimum wages.