UAW Jobs Banks Gone From Big Three
January 29, 2009
DEARBORN, Mich. -- Ford said Thursday the United Auto Workers (UAW) union agreed to end its Jobs Bank for laid-off employees as the union had done with General Motors and Chrysler.
Elimination of the controversial Jobs Bank, which gives laid-off workers nearly full pay though they aren't working, was a requirement for GM and Chrysler to keep their loans from the U.S. government. Though Ford has not taken federal money, the automaker insisted it would not be disadvantaged and expected the same concessions the union granted to GM and Chrysler.
GM confirmed Wednesday its UAW Jobs Bank is gone as of February 2. The Jobs Bank at Chrysler ended Monday.
The Jobs Bank became a lightening rod during last fall's Congressional hearings on federal loans to Detroit automakers.
GM said it has 1,600 workers in the Jobs Bank. They will receive some pay from GM and the usual state unemployment benefits.
Meantime, GM and Chrysler are negotiating other changes with the UAW, part of the development of their viability plans that must be submitted to Congress February 17 and March 31. Chrysler is known to be discussing changes to UAW wages, benefits and contributions to its retiree health care program, which Chrysler wants the union to take in equity instead of cash.
Posted by Michelle Krebs at 4:56 AM under Business , Chrysler , Ford , GM | Comments (0) | digg this | Seed Newsvine
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