Technology exacerbated the wage gap. New minority workers hired at the low end of the wage scale earned even less than their predecessors had. A similar process was at work for women, who were ghettoized in packing jobs-the lowest paying position in the factory. Fernandez concludes that the wage gap can be tempered with good management. In the case of the food processor, low-end wages drifted down rather than plummeted, says Fernandez.
Decisions taken at the company level can have a significant impact.
Low-end workers who stayed through retooling did better, thanks to the way the company handled the transition.