Chrysler job bank going on hiatus Monday
The UAW jobs bank is a kind of employment limbo in which workers get paid a portion of their salary but don't work while they wait for their job to open up again. Last year, there were about 3,500 people in this so-called bank of jobs. It is the kind of benefit that can perplex an outsider, because someone can remain in the job bank for years and still get a wage from the company, plus supplemental pay from the company, plus unemployment benefits, plus insurance. That was the kind of thing that Congress zeroed in on when it created stipulations for granting GM and Chrysler $17.4 billion in bridge loans. The intent was to get domestic automaker costs in line with those of foreign automakers by not paying people who aren't actually working. Due to that, Chrysler's job bank will officially end on Monday, with workers still in the bank being moved to another quizzical state: "enhanced layoff." Those folks will keep their insurance and should receive some kind of job benefits.
The union has told its members that "these provisions will only be in effect until such time as the mandates from the U.S. Treasury Department have been clarified," which would appear to leave the possibility open for a return of the job bank. Chrysler has only said is is working "with its UAW partners to comply with the terms and conditions outlined." GM is still wrangling with the UAW over its job bank. Ford, having sat out the government bailout, hasn't clarified its position on the matter.
[Source: Freep]
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Reader Comments (Page 1 of 1)
JN 10:17AM (1/25/2009)
Well, it's a start.
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crawford.kirk 10:37AM (1/25/2009)
As I remember the Job Bank, it was because they were laying off and calling back hundreds of people. This was created because these people had to keep going through Medical checks. The Job Bank eliminated that.
Besides, the people did odd jobs like, pulling weeds around the grounds of the plant. Later they were used as absentee replacements in the plants. (That wasn't quite how it was done, they move people around and the Job Bank person was given the worst job in the plant. I should know.)
Supposedly the Job Bank saved some money by not processing people in and out of work.
I would like something tied to inventory. Inventory, no work, no inventory, work.
W. Kirk Crawford
Tularosa, New Mexico
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FThorn 11:28AM (1/25/2009)
How can it perplex an outsider?
Ever heard of (un)employment benefits from the USA government?
I think many people have. Not that I have ever used that service.
Instead of YOU(aka as the government) paying for them being laid off, they pay for it themselves as part of their pay goes to fund this job bank.
When I worked at a UAW shop, I paid $2/hr, even though I was not a union member. That money goes to those that are laid off through no fault of their own (aka Management not being able to MANAGE the production flow; and/or cut-over of equipment due to model year changes)
I guess we can all pay for them to be off, now, and on the ranks of government welfare. That's just what the dems want. More people praising THEM for paying them to be out of work. And it makes the nanny-state all that much harder to EVER get off of our (working people's) backs.
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the vegas style guy 11:41AM (1/25/2009)
Oh brother. Yup, it's the Dems fault! The last eight years, the Dems fault. Oh wait, isn't it Obama's fault?
How lucky for you that you've never used unemployment. You wrote that with what must have been a distasteful sneer on your face. I bet some of your friends and family have. How do you sleep at night when you have such disdain for your fellow man?
Are you a "christian"? too? I'm just wondering because it looks like they're lowering the standards on admittance to that club if you are.
insiderunkown 11:45AM (1/25/2009)
Did you not see the part were people are getting the normal government unempolyment on top of partial pay from the automaker, and still getting their benifits?
I don't understand the UAW, yes these are hard times and taking a pay cut is never good, but they are seriously at a point where its possible that not taking pay cuts could = losing jobs entirely by aiding in the bankrupting of these companies!
I would rather make a little less than make nothing at all!
paul34 1:42PM (1/25/2009)
Vegas, who was in Congress for the past 2-4 years? Stop blaming one person, grow up, and learn the facts.
windswords2 6:14PM (1/25/2009)
Vegas, the economy grew for the 7 of the last 8 years and unemployment has been around for much longer than that. I think unemployment is necessary but FT's point is that we have become too dependant on the government over the years. And only one party has been the party of government historically, the Democrats, although the Republicans tried very hard to imitate them the last few years and got tossed out of control of congress for it.
Frank 6:19PM (1/25/2009)
Vegas, the economy grew for the 7 of the last 8 years and unemployment has been around for much longer than that. I think unemployment is necessary but FT's point is that we have become too dependant on the government over the years. And only one party has been the party of government historically, the Democrats, although the Republicans tried very hard to imitate them the last few years and got tossed out of control of congress for it.
windswords2 6:31PM (1/25/2009)
Just in case it wasn't clear I meant unemployment *benefits* when I said unemploymnet in the post above.
Frank 6:44PM (1/25/2009)
Just in case it wasn't clear I meant unemployment *benefits* when I said unemploymnet in the post above.
FThorn 11:54AM (1/25/2009)
No one I know of (have dozens of family/friends in UAW and in the job bank) gets government welfare while laid off.
I do consider myself lucky in some ways. At the moment I am medically unable to work and not getting any income, employer or otherwise, though. I am relying on myself (via saving and not going into debt over my head) to handle my bills and such. That's just the way I planned it. All my family had hard financial times and I learned from my father who grew up during the depression, to not overspend and be self-sufficient. Live beneath your means affects yourself, and others, too.
I am a manufacturing management guy, that grew up with the UAW, and I respect both sides. But both sides have had and continue to have their errors. The job bank is not one of them.
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Dazza 3:15PM (1/25/2009)
Powerful unions are interested in what constitutes business when times are good - because good business decisions benefit their members. However, they're not at all interested in what constitutes business when times are lean - because good business decisions don't benefit their members. It's a simple equation and one which is currently perilous for the indigenous U.S. motor industry.
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tankd0g 4:45PM (1/25/2009)
And it comes back Tuesday as the "enhanced layoff program". What a joke. The fleecing of America continues.
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Taylor 2:08PM (1/26/2009)
Exactly! "Enhanced Layoff"?? WTF?
Attention "laid off" UAW member: They don't need you anymore. Get a job somewhere else. You get 2 months salary and no benefits. Wake up to reality.
The UAW is eventually going to take down Detroit and then they'll be crying about none of them having a job....just because they can't deal with the reality of job losses now.
redcars 12:13AM (1/26/2009)
It sounds better to be in the job bank than working on the line.
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