GM Ends Jobs Bank on Monday. Calls It Something Else. Will Reinstate ASAP.
You may recall this headline. That’s because we’ve already used it: “ Chrysler Ends Jobs Bank on Monday. Calls It Something Else. Will Reinstate ASAP.” In said post, we debunked the idea that the United Auto Workers (UAW) was making anything resembling a concession. To refresh your memory, the union said the action on the Jobs Bank was a temporary suspension, rather than an outright elimination. Today, Bloomberg reports that the 1,600 GM employees currently enjoying the benefits of the UAW jobs bank will be out in the cold as of February second. But not really. GM spokesman Tony Sapienza tells Bloomberg that those leaving the jobs bank will get state unemployment benefits and “some GM pay.” Over at Automotive News [sub], Sapienza said GM is discussing “supplemental pay” [emphasis added] with the union “as part of current negotiations.”
But hey, at least it looks like a concession, so the bailouts can continue.
“We really appreciate our union partners’ willingness to work with us as we restructure our business for long-term viability and work on terms of the bridge loans,” says Sapienza.
And what of the UAW’s claim that the Jobs Bank had been “suspended” on December 3 after becoming the union’s “jet-gate?”
GM workers who qualified for the jobs bank were told to stay home, and received 85 percent of their pay. Seeing a pattern here? The UAW also set Jan. 26 as the date to halt the Jobs Bank at Chrysler LLC, but confirmation is unavailable. Since Ford isn’t accepting federal money (yet), the Blue Oval Jobs Bank remains intact.
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GM in particular has been losing money since 2004. The current credit crisis forced this to a head but it was coming no matter what. Nobody wants to see the Detroit 3 go down but now that I have been forced to become a shareholder (taxpayer) I can only state that if the UAW does not care enough about their jobs to be actively supporting concessions and doing whatever it takes to keep the doors open then why should I care?
"Name the union officer that decided that the obscene profits from the SUV/full size trucks should go into excutive bonuses and compensation." I always thought this was a question that should have been asked by Congress. No so much about the uunion issue but really, the Big3 took in loads of cash since the American public bought the more profitable SUVs and trucks. I'm sure some of that was to offset the loss on the small cars required to produce to meet the CAFE standards, but I don't see all those profits being required for that!
menno : "I’m in northern Michigan and we stopped in a VERY small town north of us while out for some color tours last fall. Stopped for some fast food (not much else was in the town) and recalled that the one big factory in the little tiny town now had a “for sale” sign on it. Asked what happened at the restaurant/fast food place. The plant was union. The car parts company said “know what? We need to talk. We can’t keep the plant going unless we can cut costs to compete with plants either real close to the factories they supply, or compete with the cheap imported parts. We need to discuss reducing your medical benefits a little and increasing the deductibles to about what most folks have to pay in other jobs in the area.” It wasn’t even a straight up request for a pay-cut. Guess what the union (and the union boys) replied?" ...and when they finally pulled into the driveway and got out of the car, there WAS A HOOK ATTACHED TO THE DOOR HANDLE! I process these anti-union yarns exactly the same way. Zzzzz. An anecdote is not an argument. Let's see an actual business study of how and why the plant really closed. Until then stop pulling my leg.