Automakers to End Union Job Banks

The United Auto Workers will end its jobs-bank program at Chrysler LLC, effective January 26th, while General Motors is in talks with the union about a similar deal.

The major US auto makers, under current contracts, are required to place workers in the job bank instead of firing them when production is halted. Those workers receive about 80% of their pay, with the majority of that money coming from the company and the remainder from federal unemployment contracts.

Chrysler has been trying to hammer out new cost-cutting measures with unions and other stakeholders, to show the federal government that it is restructuring after receiving $4 billion in low interest loans. It is still waiting on an additional $3 billion in support.

GM confirmed its own discussions with the UAW.

Ford Motor had no comment on whether the company was talking to the UAW about its jobs bank. However, Ford has insisted that it wants to share in any of the concessions granted to the other automakers. Ford has not yet taken a loan from the government.

Ford has about 1,400 workers in the bank as of November, receiving anywhere from 80% to 100% of their pay.