UAW Ends Chrysler Jobs Bank
January 26, 2009
The United Auto Workers (UAW) union has agreed to end its controversial Jobs Bank at Chrysler that pays workers on layoff, effective Monday.
The Jobs Bank became a lightening rod during last fall's Congressional hearings on government aid to U.S. automakers and its elimination was part of the agreement to obtain the federal loans.
Congressmen attacked Big Three and UAW leadership for allowing the practice of workers collecting up to 95 percent of their pay for not working, often for several years.
General Motors and the UAW reportedly are negotiating to eliminate the Jobs Bank at GM as well. Ford likely won't be left out in the cold on this one as its executives have said despite the fact that it has not sought government loans, the automaker will not be disadvantaged competitively and will insist whatever GM and Chrysler get from the UAW, so does Ford.
Posted by Michelle Krebs at 6:47 AM under Business , Chrysler , Ford , GM | Comments (0) | digg this | Seed Newsvine
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