Autoblog

UAW agrees to suspend GM job banks on Feb 2

Jonathon Ramsey — Wed, 28 Jan 2009 15:22:00 EST

Filed under: Plants/Manufacturing, GM, Earnings/Financials, UAW/Unions

The UAW idled Chrysler's jobs bank earlier this week, and as of February 2, the UAW and General Motors will shut down the job bank it also maintains for its workers. GM is paying the 1,600 workers currently in the system 85% of their on-the-job wages. As of February 3, they will receive a measure of supplemental pay from GM and can apply for unemployment, the total of which should come to 72% of their former pay. The move potentially leaves Ford's jobs bank as the only one left running, but Ford has yet to comment on its status.

[Source: The Detroit News]

UAW agrees to suspend GM job banks on Feb 2 originally appeared on Autoblog on Wed, 28 Jan 2009 15:22:00 EST. Please see our terms for use of feeds.

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Chrysler job bank going on hiatus Monday

Jonathon Ramsey — Sun, 25 Jan 2009 09:35:00 EST

Filed under: Government/Legal, Chrysler, Earnings/Financials, UAW/Unions

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]

Chrysler job bank going on hiatus Monday originally appeared on Autoblog on Sun, 25 Jan 2009 09:35:00 EST. Please see our terms for use of feeds.

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Who says the Japanese don't have a jobs bank?

Sam Abuelsamid — Sun, 28 Dec 2008 19:04:00 EST

Filed under: Hirings/Firings/Layoffs, Plants/Manufacturing, Toyota

Toyota's San Antonio truck plant

In recent weeks, as the CEOs of the Detroit automakers lobbied for a federal bailout to get then through the current financial crisis, one of the many criticisms that came up was the UAW "jobs bank." The jobs bank was devised back in the 1990s when the automakers were relatively flush with cash, but were still closing some older plants or reducing production at facilities that built vehicles that weren't selling. The UAW fought for and won a system whereby the workers at those plants still got most of their pay for a time and were placed in a jobs bank. As openings became available at other plants, people in the jobs bank got priority over new hires. In some cases, jobs bank employees were also getting re-trained. The non-union Japanese factories would never do such a thing. Or would they?

Last summer, as sales of the big trucks plummeted when gas jumped to $4 per gallon, Toyota made the decision to completely shut down the two factories building the Tundra and Sequioa for three months. What they didn't do was follow those actions with traditional layoffs. Temporary workers were released, but permanent workers still reported to the plant every day for training. When there was nothing to train them on, some were sent out to work cleaning local parks. Even after production restarted at the San Antonio plant, the line speed was cut in half. All the while, these autoworkers were not building trucks but they were collecting pay checks. Sound familiar?

[Source: The New York Times]

Who says the Japanese don't have a jobs bank? originally appeared on Autoblog on Sun, 28 Dec 2008 19:04:00 EST. Please see our terms for use of feeds.

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UAW agrees to suspend Jobs Bank, postpone VEBA contributions

John Neff — Wed, 03 Dec 2008 14:27:00 EST

Filed under: Government/Legal, UAW/Unions

While Ford, General Motors and Chrysler all submitted plans to Congress yesterday that detail how much sacrifice they're willing to make in order to secure government loans, the United Auto Workers union waited until today to announce how it plans to contribute. UAW President Ron Gettelfinger met with leaders of his local Detroit 3 unions today and emerged with a plan to suspend the controversial Jobs Bank program that allows laid off workers to receive up to 95% of their standard pay. Gettelfinger also said that Detroit automakers could postpone making payments into the Voluntary Employee Beneficiary Association, a union-run fund that was scheduled to assume responsibility for retiree healthcare after automaker contributions in the tens of billions were made.

Gettelfinger will once again take a seat next to GM CEO Rick Wagoner, Ford CEO Alan Mulally and Chrysler CEO Bob Nardelli in front of Congress tomorrow. After their admittedly weak showing on Capitol Hill last month, the CEOs and Gettelfinger now have detailed plans to offer Congress on how they would use government loans to ensure their long term viability.

Oh, and while each of the Detroit 3 CEOs will be driving down to DC after being lambasted by Congress for their previous travel aboard separate private jets, Gettelfinger, who never had a private jet, will still be using a commercial airline to reach his date with destiny.

[Source: Automotive News - sub. req'd, Jalopnik, Photo by Chip Somodevilla/Getty]

UAW agrees to suspend Jobs Bank, postpone VEBA contributions originally appeared on Autoblog on Wed, 03 Dec 2008 14:27:00 EST. Please see our terms for use of feeds.

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UAW president Ron Gettelfinger reelected

Erin Mays — Thu, 15 Jun 2006 11:05:00 EST

Filed under: Etc., Hirings/Firings/Layoffs

Nobody saw this one coming... Ron Gettelfinger, ran unopposed and was reelected as the president of the United Auto Workers (UAW) at its 34th Constitutional Convention in Las Vegas. Alongside him on the slate were five vice presidents, three of which are expected to be named as liaisons to Ford, Chrysler and General Motors, as well as a secretary-treasurer.

Despite this being a surprise to precisely nobody, it's interesting that Gettelfinger ran completely unopposed, particularly given the strife between his organization and OEMs and their suppliers, as well as the fact that the union has lost enough of its membership to be credited with the lowest numbers since 1942.

[Source: The New York Times]

UAW president Ron Gettelfinger reelected originally appeared on Autoblog on Thu, 15 Jun 2006 11:05:00 EST. Please see our terms for use of feeds.

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American Axle looks to shake loose "job bank"

Eric Bryant — Thu, 25 May 2006 10:04:00 EST

Filed under: Trends, Plants/Manufacturing, Earnings/Financials

American Axle Manufacturing (AAM), one of General Motors' main suppliers, isn't bankrupt,but it is feeling financial pain from the 1,100 workers that it is currently paying not to work. A grand total of $75 million is spent by AAM each year to maintain its share of the United Auto Workers "jobs bank", which represents approximately 2 percent of the supplier's gross sales and a substantial dent in the company's $56M of profit last year.

In order to cut the banked workers free from AAM's balance sheet, the company is mulling the same approach taken by others in the unionized auto world - massive buyouts. Assuming that workers would bite on a hypothetical figure of $100K/each (a number that has been thrown around in the context of similar action from Delphi and GM), the company would obtain a return on its investment in approximately 18 months. The company is intent on returning to its previous financial performance by 2008, which is a move that would require adding $100M to the bottom line each year.

[Source: Detroit News]

American Axle looks to shake loose "job bank" originally appeared on Autoblog on Thu, 25 May 2006 10:04:00 EST. Please see our terms for use of feeds.

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