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Old 01-29-2009, 01:37 PM   #1
AVANTI R5
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Default GM calls an end to ‘jobs bank’ scheme

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General Motors said on Wednesday that it had agreed with the United Auto Workers union to end a scheme that has allowed union members to collect virtually full pay and benefits even when there was no work for them in the carmaker’s assembly plants.

Known as the ”jobs bank”, the scheme has limited the savings to GM and the rest of the Detroit motor industry from plant closures. It has also become emblematic of the problems facing the industry in matching the competitiveness of foreign rivals whose US plants are not unionised

The jobs bank has increasingly been criticised as the blue-collar equivalent of executives’ much-maligned corporate jets.

Ending the jobs bank is among the conditions of $17.4bn in emergency loans granted by the US government to GM and Chrysler. The loans require the companies to achieve ”competitive” labour costs.

Chrysler said earlier this week that it was suspending its jobs bank.

Under labour contracts negotiated by the carmakers and some key suppliers over the past two decades, laid-off workers initially received 95 per cent of their take-home pay.

A portion came from state-run unemployment insurance, with the employer making up the rest. If the workers were not recalled after 48 weeks, they were transferred into the jobs bank, where they reverted to full pay and benefits, entirely funded by the employer.

Until the end of last year, their only obligation was to report to their plant each day, unless they opted for community service or retraining. The benefits have been whittled down as the carmakers’ financial problems have mounted. Since last year, workers have received 85 per cent of normal pay and benefits last year, and were no longer required to report to their plants.

GM’s jobs bank has shrunk from 7,500 workers in 2005 to 1,600. About 1,000 workers are affected at Chrysler. Industry-wide, the jobs bank covered more than 12,000 workers in 2005.

In spite of the GM and Chrysler announcements, laid-off workers will still enjoy unusually generous benefits.
GM said the jobs bank would be closed from Monday but that it would continue to supplement state benefits, allowing laid-off workers to draw 72 per cent of normal pay indefinitely.

Ford, the number-two Detroit carmaker which has not applied for government aid so far, said that it was ”in discussions with the UAW on different items”, but declined to elaborate.
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Old 01-29-2009, 02:06 PM   #2
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Unions.
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Old 01-29-2009, 02:07 PM   #3
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In spite of the GM and Chrysler announcements, laid-off workers will still enjoy unusually generous benefits.
GM said the jobs bank would be closed from Monday but that it would continue to supplement state benefits, allowing laid-off workers to draw 72 per cent of normal pay indefinitely.
wow, I'm so glad our tax dollars are going to help the auto industry recover.

makes me glad all over again that I bought foreign.
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Old 01-29-2009, 02:50 PM   #4
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Originally Posted by AVANTI R5 View Post
...allowing laid-off workers to draw 72 per cent of normal pay indefinitely.
For the benefits to be paid "indefinitely" must also mean that our tax money must flow into this failed corporation indeinfitely

If an employer no longer has the business to support your job, how can they be expected to continue to support you for no return in labor?
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Old 01-29-2009, 03:05 PM   #5
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wow, I'm so glad our tax dollars are going to help the auto industry recover.

makes me glad all over again that I bought foreign.

I for one am glad they got bailed out.

consider that no bail out means millions losing their jobs, resulting in a flooding of the market. consider that smaller companies employed by GM and other manufactures for parts and services would also go out of business. That means more people out of a job. This also results in less spending by people into the economy and we all spiral down hill to our own destruction.
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Old 01-29-2009, 03:33 PM   #6
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I for one am glad they got bailed out.

consider that no bail out means millions losing their jobs, resulting in a flooding of the market. consider that smaller companies employed by GM and other manufactures for parts and services would also go out of business. That means more people out of a job. This also results in less spending by people into the economy and we all spiral down hill to our own destruction.
F that.

If we're using my taxpayer money to bailout GM and Chrysler, I at least want a free car.
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Old 01-29-2009, 04:01 PM   #7
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F that.

If we're using my taxpayer money to bailout GM and Chrysler, I at least want a free car.
Damn right, seems only logical. Workers getting paid not to work and all.
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Old 01-29-2009, 04:12 PM   #8
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I am still waiting for my bail-out........

Maybe I should be waiting for my jobs bank instead?

Peace,

Greg
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Old 01-29-2009, 04:32 PM   #9
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I for one am glad they got bailed out.

consider that no bail out means millions losing their jobs, resulting in a flooding of the market. consider that smaller companies employed by GM and other manufactures for parts and services would also go out of business. That means more people out of a job. This also results in less spending by people into the economy and we all spiral down hill to our own destruction.
yeah, that is all good and everything, people staying employed, etc.

but the bigger picture, we're paying for the car companies to indefinitely pay unemployed workers when they should be using the money given to fix themselves, not continue to **** themselves.
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Old 01-29-2009, 04:53 PM   #10
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I for one am glad they got bailed out.

consider that no bail out means millions losing their jobs, resulting in a flooding of the market. consider that smaller companies employed by GM and other manufactures for parts and services would also go out of business. That means more people out of a job. This also results in less spending by people into the economy and we all spiral down hill to our own destruction.
You have got to be kidding me, not this nonsense again.
"Bailing out" an unsustainable entity is not a bailout, it is pissing away tax dollars. Would you start a separate company out of nothing, again with dependent suppliers and employees, all to produce a product that is not in line with the competition? NO. So why let these ones go on at the expense of others? All to "save" jobs temporarily?
Let them die, file bankruptcy, come back and learn to do things the right way or disappear. There's a much bigger picture here.

/end rant, not subscribed, don't care...
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Old 01-29-2009, 04:59 PM   #11
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I for one am glad they got bailed out.

consider that no bail out means millions losing their jobs, resulting in a flooding of the market. consider that smaller companies employed by GM and other manufactures for parts and services would also go out of business. That means more people out of a job. This also results in less spending by people into the economy and we all spiral down hill to our own destruction.
No bail out does not mean the company goes down the tubes and is gone forever. They go into bankruptcy where a bankruptcy judge has the power to break up retarded union contracts. They can reorganize, leaner and meaner, and make a come back. You'd be suprised what companies in all types of industries have done this with success - a lot of big names there. Instead, with a bail out, they continue with most of the dumb decisions they had before (minus a few concessions which probably won't be enough), except at our (taxpayers) expense.
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Old 01-29-2009, 05:53 PM   #12
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The last 2 posts sum this up nicely.

Let them go into bankruptcy now and get it over with, or throw billions of dollars at them and let them die in a few months when they run out of bailout money. Both paths lead to the same outcome, but the first one is a lot cheaper and spares taxpayers the burden of being however many billions more in the hole than we are with nothing to show for it. The bailout gives them enough to keep operating for a few months, and a few months is not enough to turn around a company that big without major structural changes to said company. Bankruptcy allows them to re-structure significantly and come back in a more competitive form, while a bailout strings them along for a little longer with minimal concessions.
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Old 01-29-2009, 07:09 PM   #13
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All I can think of when I read another Big 2.5 story, is the Do-Dos in Ice age gathering around and saying "Doom on you, DOOM ON YOU!!"
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Old 01-30-2009, 10:25 AM   #14
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I really really doubt the job's bank will be gone. On Hiatus? sure. But it will be back called something else if times get better.
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Old 01-30-2009, 10:46 AM   #15
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you people who defend the bailout, do you come from money? I mean are your parents rich? I find that people who are so willing to give money away, usually do not know how hard it is to come by. When you grow up rich, its far easier to support taxes and social programs, as you always had it. But find me a guy or gal that started poor, and busted his/her butt to make her life better and I will show you a person who does not want to pay more taxes and does not want to help those who will not help themselves. BAsically I will show you a republican


I really do not understand the method of thinking that giving GM money to keep them afloat for 2 more months before they declare bankruptcy is a good thing.

Let them file bankruptcy....let them off load the unions... let them compete without a 40 lbs gorilla on their backs.
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Old 01-30-2009, 01:12 PM   #16
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But find me a guy or gal that started poor, and busted his/her butt to make her life better and I will show you a person who does not want to pay more taxes and does not want to help those who will not help themselves. BAsically I will show you a republican


Take it elsewhere, texas.
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Old 01-30-2009, 03:03 PM   #17
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HHAAHAAHAH... busted! Actually I am from Louisiana...but I was a military brat for a long time before. NASA is in Houston, so I am too.

But I can appreciate the tactful stab! haha
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Old 01-30-2009, 04:05 PM   #18
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Originally Posted by SCRAPPYDO View Post
you people who defend the bailout, do you come from money? I mean are your parents rich? I find that people who are so willing to give money away, usually do not know how hard it is to come by. When you grow up rich, its far easier to support taxes and social programs, as you always had it. But find me a guy or gal that started poor, and busted his/her butt to make her life better and I will show you a person who does not want to pay more taxes and does not want to help those who will not help themselves. BAsically I will show you a republican


I really do not understand the method of thinking that giving GM money to keep them afloat for 2 more months before they declare bankruptcy is a good thing.

Let them file bankruptcy....let them off load the unions... let them compete without a 40 lbs gorilla on their backs.
Really well said, I completely agree. The only thing that i can't get over is that the entire scenario doesn't make sense whether you have money or not. I grew up in a 550sq. foot house until I was 8, and yeah I'm not a big fan of throwing money away. But even I can understand putting tax money toward the greater good where something will come out of it. What I don't like is giving my hard-earned money away and seeing no benefit from it whatsoever. There are good uses of tax money. Maybe putting money into infrastructure or something along those lines. A large chunk of my income goes to taxes, and that would be a lot less frustrating for me if I had nice roads to drive on, for example. Or even a decent small business loan program to create more competitive markets and generate jobs, at least a fledgling small business is starting with a clean slate so it's only a risk, not a nearly garunteed loss of money like GM is in their current form.

But when we dumping billions into such a large failing company without changing the root cause of their predicament, we might as well just burn the money... All that accomplishes is to delay their collapse for a couple of months, and it's plainly obvious that this is all a bailout will accomplish without MAJOR contractual concessions and major changes to the way in which they do business. If they're losing XBillion dollars per month, without making serious changes, they'll still be losing YBillion dollars per month in 3 month's time. The job bank is one of their problems, but they're not letting go of it completely, and it's only one of many huge problems that GM faces.

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Old 01-30-2009, 04:18 PM   #19
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No bail out does not mean the company goes down the tubes and is gone forever. They go into bankruptcy where a bankruptcy judge has the power to break up retarded union contracts. They can reorganize, leaner and meaner, and make a come back. You'd be suprised what companies in all types of industries have done this with success - a lot of big names there. Instead, with a bail out, they continue with most of the dumb decisions they had before (minus a few concessions which probably won't be enough), except at our (taxpayers) expense.
Can't agree more tea cups
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