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Senate Republicans Likely to Target UAW's "Jobs Bank" This Week

Senate Republicans Likely to Target UAW's "Jobs Bank" This Week

By Colin Mathews's avatar Colin MathewsColin Mathews December 1st, 2008

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As the Big Three trudge back to Washington tomorrow to make their carefully tailored plans for federal assistance, Automotive News says that Republicans are likely to request practices such as the United Auto Workers (UAW) union's "Jobs Bank" be eliminated. These and other concessions are expected to be proposed by some or all of the Big Three as they make more allowances in hopes of placating a Congress none too eager to fund billions in assistance for three companies notorious for inefficient money management.

The UAW's Jobs Bank ensures unionized, hourly auto workers nearly full pay when they are laid off. Automotive News calls the practice "a powerful symbol of auto industry excess."

Senator Kit Bond of Missouri, who is described as a moderate Republican, told Automotive News that "management, workers and investors are going to have to make sacrifices if they truly want to turn around their companies enough to earn taxpayer help." They say that GM will likely be the first to propose the Jobs Bank elimination.

Republican Senator Elizabeth Dole, who recently lost her '08 reelection bid to Democrat Kay Hagan, said that "the enormous costs in union-required benefits are unsustainable. Renegotiating these contracts would be essential if there were to be hope of keeping these companies afloat."--Colin Mathews
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Make sure you check out our partner sites dedicated to focused news, reviews and more for Ford, Chevrolet, Toyota, Honda, and the Toyota Prius. uaw logoEnlarge PhotoAs the Big Three trudge back to Washington tomorrow to make their carefully tailored plans for federal assistance, Automotive News says that Republicans are likely to request practices such as the United Auto Workers (UAW) union's "Jobs Bank" be eliminated. These and other concessions are expected to be proposed by some or all of the Big Three as they make more allowances in hopes of placating a Congress none too eager to fund billions in assistance for three companies notorious for inefficient money management. The UAW's Jobs Bank ensures unionized, hourly auto workers nearly full pay when they are laid off. Automotive News calls the practice "a powerful symbol of auto industry excess." Senator Kit Bond of Missouri, who is described as a moderate Republican, told Automotive News that "management, workers and investors are going to have to make sacrifices if they truly want to turn around their companies enough to earn taxpayer help." They say that GM will likely be the first to propose the Jobs Bank elimination. Republican Senator Elizabeth Dole, who recently lost her '08 reelection bid to Democrat Kay Hagan, said that "the enormous costs in union-required benefits are unsustainable. Renegotiating these contracts would be essential if there were to be hope of keeping these companies afloat."--Colin Mathews --- Make sure you check out our partner sites dedicated to focused news, reviews and more for Ford, Chevrolet, Toyota, Honda, and the Toyota Prius.

Tags: North America, Industry, Politics, Rumor Mill, General Motors

Posted in: 2008, Chrysler, Ford



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Responses (15 total)

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  1. By Eddie #11, Posted: 12/2/2008

    I agree that the job bank benefit is way over the top in today's economic realities. Also, I agree that companies should try to take care of their workers and do their best to provide gainful employment for them. As a mechanical engineer, I have been in the position of being laid off once things didn't go well for the company. No job bank, no benefit. Just a sorry we have to let you go and good luck to you. So my only option was the unemployment line. What is causing the auto companies and the steel companies and others before them to lose out and go bankrupt is globalization!!! Once the door was opened and workers making $1/day started competing against our workers making good salaries and benefits, we get what we have here: The slow death of our manufacturing industry. It is sad but that is the price of globalization I guess!

  2. By Baloney! #12, Posted: 12/2/2008

    UAW are living in la-la-land! They are about to follow suit with the air traffic control unionists who were put out of jobs, homes, families, etc., because of their wretches excesses and hardheadedness in thinking everying is either their way.....or else. I, for one, am dedicated to driving foreign vehicles and will convey my message to the unions that way. A new Audi, Porsche, BMW, or Mercedes Benz would look might fine in my garage right about now.

  3. By Ed #13, Posted: 12/2/2008

    The $1 myth you propagate is PATENTLY FALSE. NAME ONE Import Auto brand in the USA today that pays its workers $1 anb hour. TO help you out, there is NONE. In addition, the Detroit 3 are the MINORITY producers, as they make less than 46% of all cars sold in the US, and the almost 80 TRANSPLANT plants in the US and Canada make the vast majority of the 54% that remains.
    And they pay their workers HANDSOMELY, total cost $48 an hour, and even more in EUROPE, and treat them with DIGNITY and DO NOT lay them off, even if their products do not sell, as with the Toyota Tundra, which kept paying its workers during the 3-month shutdown of its plant, BUT asked them to perform community services for their salary, and NOT idle around and be drunken, card-playing, drug-abusing, chain smoking BUMS.
    A further point: It is NOT the mid-priced imports where the Detroit 3 lost most market share, but the LUXURY segment, where the Germans and LExus DOMINATE. That segment was 90% BIG 3 in the 60s and 70s and is only 17% Detroit (NOT BIG) 3 now!!! Lincoln is on its deathbed, and Caddy, if not for the moronic Pimpmobil the Escalade, would be dead too...

  4. By jen #14, Posted: 12/3/2008

    Baloney- It's you attitude about foreign products, that has put us in this recssion! Jerk!

  5. By Andy #15, Posted: 12/3/2008

    It is ridiculous that an industry that has, for many years, built inferior products at ridiculous prices and at ridiculous costs would come to me, the taxpayer, for a handout for billions of dollars. Job Banks???? Are you kidding me? 95% pay indefinitely if you are laid off? Not with my money you aren't !! Let the industry crash to the ground as far as I am concerned.

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