Chrysler jobs bank ends Monday

Next is ending, rather than suspending, the jobs bank at GM and Ford

Chrysler jobs bank ends Monday
http://tinyurl.com/bp66ua

The controversial jobs bank -- a program that allowed UAW workers to
receive pay while not working -- ends Monday at Chrysler, the union has
told its members.
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In a letter obtained by the Free Press, General Holiefield, the UAW's
vice president of the Chrysler department, told members that the change
was to comply with the terms of the federal loan agreement that gave
Chrysler $4 billion to stay afloat.

"Without this loan, the corporation would most certainly" have "been
forced to file for bankruptcy protection," he wrote in the letter dated
Thursday.

"In order to be in compliance with the mandate, the jobs bank will be
eliminated effective Jan. 26," he added. "Employees that are either in
the jobs bank or would have been in the bank will be placed on
unemployment ... until such time that we have a clarification of all of
the stipulations ... in the 'terms of agreement.' "

Chrysler told employees in a letter Friday that workers now in the jobs
bank would be placed on "enhanced layoff," effective Monday, until a
final agreement has been reached with the UAW.

Workers going into enhanced layoff were advised to apply for jobless
benefits and told they will keep medical, dental and group life
insurance during that time.

Holiefield advised members that the changes are temporary until
negotiations are completed.

"It is important that everyone understand that these provisions will
only be in effect until such time as the mandates from the U.S. Treasury
Department have been clarified," he wrote.

Chrysler and General Motors must present viability plans to the
government by Feb. 17 and convince the government they are viable by
March 31 or face losing the loans.

Chrysler and GM received the loans with terms targeting more UAW
concessions, including reducing compensation to be more in line with
foreign competitors operating U.S. plants.

The terms also called for the "elimination of the payment of any
compensation or benefits to U.S. employees of the company or any
subsidiary who have been fired, laid-off, furloughed, or idled, other
than customary severance pay."

Chrysler issued a statement Friday that it continues "to work closely
with its UAW partners to comply with the terms and conditions outlined"
by the government.

A UAW spokesman didn't respond to questions.

Meanwhile, GM's jobs bank is still under negotiation with the UAW,
company spokesman Tony Sapienza said.

Late last year, GM reduced the amount of money paid to workers in the
jobs bank program and stopped having them report to a company facility,
he said. Now GM workers in the jobs bank stay home and collect about 85%
of their pay.

Ford Motor Co., which did not take a government loan, has ongoing talks
with the UAW, said Mark Fields, Ford's president of the Americas. He
declined to say whether the jobs bank program was part of those discussions.

In December, UAW President Ron Gettelfinger said the union would be
willing to suspend the jobs bank and allow the automakers to delay
payments into a retiree health care trust set up as part of the 2007
labor agreement.

Speaking about the jobs bank provision last year, Gettelfinger said it
had already been severely reduced. He characterized it as a "mere shadow
of what it used to be."

Gettelfinger said then there were about 700 Chrysler workers, 1,400 Ford
workers and 1,400 GM workers in the respective jobs banks.

UAW autoworkers went into the jobs bank if they remained laid off beyond
48 weeks, during which time they received a combination of unemployment
benefits and supplemental pay from their employer. In jobs bank, the
company provided about 95% of their pay and benefits.

Lawrence Faw, 47, of Warren, has been in Chrysler's jobs bank for four
years, after losing his job as a welder at Chrysler's Warren truck
assembly plant in 2005. He has spent most of his time volunteering
through the jobs bank at two churches in Warren.

Besides the jobs bank, Faw expects to receive unemployment insurance and
money from supplemental pay, leading to a pay cut of about 10%.

"My biggest concern is for the charities," Faw said. "Now the workers
are getting less money and the charities don't have the bodies."

 

typical dems. crap ideas!!!!!!!!! take away a entity that provided this benefit
and drop it squarely on the shoulders of U.S tax payers
90 percent of people on unenjoyment can't even pay a mortgage payment let alone
provide dinner for the family too!
our wonderful speaker of the house in charge takes a her private jet from dc to
cali and back each weekend but you never heard of that in the auto talks in
washington
and then gives herself a huge raise to boot !
the rest of us lose our jobs while she continues to allow taxbreaks for
companies that ship jobs overseas