UAW agrees to suspend Jobs Bank, Gettelfinger says
David Barkholz
Automotive News | December 3, 2008 - 12:35 pm EST
The UAW has agreed to suspend the Jobs Bank program and allow the Detroit 3 to delay making payments to a retiree health care trust in 2010 to help the automakers through their cash crisis, UAW President Ron Gettelfinger said.
Gettelfinger spoke after summoning the presidents and chairmen from Detroit 3 locals for an emergency meeting in Detroit today.
The union is willing to make modifications to the 2007 contracts reached with General Motors, Ford Motor Co. and Chrysler LLC, said Jeff Everett, a local Chrysler president who attended the meeting. He said concessions on wages and benefits for active workers weren’t discussed.
“Times are tough, and we are going to do what we have to do,’’ said Everett, president of UAW Local 1166 in Kokomo, Ind., in an interview. Under the so-called Jobs Bank program, laid-off factory workers can receive as much as 95 percent of their regular pay. The payouts have drawn scorn from opponents of federal aid who see them as a sign of Detroit’s excess.
On its face, the Jobs Bank was a corporate welfare program that needed to be eliminated. There was no way that pro-business lawmakers were going to go let GM have access to funding if this program continued to exist.
However, the number of folks in the Jobs Bank was reduced after the last round of UAW contract talks. So really, we're talking about a small number of workers overall, in relation to the total number of UAW works still on the books.
Truly this is more of a political move than anything. An important and necessary move to be sure, but still small potatos compared to the retiree pension/benefits issue.
The media will love this and act like this move alone will save $10B a year. They wont get into specifics about how many are actually left in the jobs bank in 2008. Its going to be interesting to see how the anti Big 3 crowd handles all this news since most of their complaints are being addressed. What will the anti GM GOP senators say now?
What does the word suspend mean in the phrase "suspend the jobs bank."
It would seem to me that a wage reduction of a few percent might mean more, right away, than suspending the VEBA payment. Frankly, I had thought all along that the Congress was likely put the money into the VEBA because that directly affects the Union workers. If GM goes belly up, the Pension Benefits Guaranty Corporation would have to pick up most of that anyway, so it's a "pay me now or pay me later" situation.
Cheers,
Ed
accordint to what I've read the UAW pursued job security over wage increases over the years which is how the jobs bank came to be. I dont see how this is hard to believe when athletes get hurt and still collect hundreds of thousands per game or when CEOs get paid to leave after leading their companies poorly. Congressman get paid $165k a year to work a few month and cast a few dozen votes in a year. They also get vested after a few years and have a sweet pension. And yet all people care about is a jobs bank.
Good post! my sentiments also.Congress says The UAW pension is out of line? What do they make after just a few years as a political position? Put them on the line at any of the Big 3 and they will appreciate the meager pension we gwt compared to what a member of congress gets for their little bit of work they do.
My way of looking at the jobs bank:
Toyota ran with the concept of Just in Time manufacturing, streamlining production and increasing manufacturing efficiency, so much so that GM partnered with them for the joint venture at NUMMI. One of the basic principles of JIT, as I understand it, is that you eliminate warehouses where parts just sit around, costing the company money.
Am I the only one who sees the jobs bank as just an employee warehouse?
I am glad to see the jobs bank up and fully operational at this time when GM is in such dire straits. It just goes to show how bloated and dysfunctional Detroit has become. It will hopefully demonstrate to people how dangerous and how irrelevant unions in general have become in this day and age in industry. GM, Ford and Chrysler are wrapped up in a poisonous relationship with the UAW and CAW to the point where the unions are killing the golden goose that has been feeding them very well for decades and decades now. Its a very stark example of how unions are completely past their effectiveness in the world today. The Big 3 would be so much better all going bankrupt. That way they could close their doors the first of the month and than reorganize things and in a month or soonner perhaps they could reopen their doors as a non union shop employing many of the same people it had before the bankruptcy. Union workers putting a few bolts on a car making $70+ dollars an hour is absurd. Name another union job where the employees often times are completely unskilled where they are making this sort of money per hour? What makes it even crazier is that non union foreign brands that are assembling cars here in the US do essentially the same types of jobs as Detroit are paid 50% less per hour than those who belong to the UAW and CAW. I will acknowledge that there are other problems that lead to where the Big 3 are today. That being said, the vast majority of the other problems can't be put entireley at the door of Wagoner, Mullaly, or Nardelli's doorstep.
Contracts with the UAW are a slippery slope. Once you tie yourself to the UAW, you will have serious money problems at one point or another. It boggles my mind that the UAW was successful in strong arming The Big 3 into providing the jobs bank. Well, with incremental progression of wants and needs of the UAW being put forth in contract negotiations. It doesn't surprise me that Detroit was eventually conned into doing these frivilous and parasitic programs for the UAW rank and file. Big things will get accomplished good,bad or neutral in their effect if they are promoted slowly and tactfully over long periods of time. That is exactly what Detroit was pushed into accepting. The Big 3 figured it was better to appease the unions and work with them than to risk a strike. This was especially true at times when Detroit was making money hand over fist. I will knock Detroit and its management teams over the decades for not having the intestinal fortitude in fighting the unions much more vigorously than they really should have since we are talking about their very survival at this point in time.
When unions first came about, people weren't so sue happy. Nowadays, every corporation is walking on thin ice - times have changed. I don't feel unions are necessary any longer. Though I do also believe that once the unions are GONE, factory jobs like these will be one of those low paying varieties that "American's won't do" - if you know what I mean... So unions aren't all bad either...
RG rightfully got ripped today for their new "concessions", which amount to little or no help to GM, Ford or Chrysler, while acknowledging the 2007 contract and asking what's next?
Here's a quote about the skilled UAW workers from another forum discussion. I'm sure there are plenty of highly skilled UAW workers, but not all of them deserve such high pay.
Yeah, I know how "skilled" some of those UAW guys are btw.... I spend a great deal of time fixing their F-ups.
I just can't get on board with someone who is shown how to operate a machine or plug in a connector and think they are worth more money in wages and benefits than someone with an actual skill set and understanding of all the systems on the car, not just how to install a bolt in the left front fender over and over again and over.
You should see some of the atrocities I have seen rolling off the assembly line. Don't forget we have to look over every vehicle before we put it on the showroom floor.
If those guys were so "skilled" then why does GM have to pay us to look over their work... we should just be able to wash them and deliver them if they're so good at the assembly plants.
Yes, they're paid well, but it more than just putting a bolt on, come on pal, have you ever been inside a plant? People who talk like you usually means you never have.
So it's kind of hard to listen to someone who doesn't have all the facts.
It seems every time there is a donation needed there is someone at the gates at work collecting,and we always give out of our pockets. When there was a lot of people in the jobs bank a few years ago there was 100's of volunteers through out the mid michigan area(schools,churches,and local gov't)And if I am not mistaken the auto industry pays in close to $150 billion in taxes a year are any of you that doesn't want the auto industry to get a loan going to pay more in taxes to make up the shortage.Your job is next .
Chairperson Calvin White and I attended the special UAW leadership meeting on December 3 2008. The meeting was attended by the Chairpersons and Presidents from the local unions of GM, Ford and Chrysler.
These are the key points from that meeting:
State of GM- Steve Girsky, an auto finance analyst and actuary addressed the group and stated that without the approval of the requested $4 billion bridge loan from the federal government GM would be expected to file for bankruptcy by January 2009. It was discovered during the merger talks with Chrysler that GM had much less cash than expected and that GM would not be able to meet its financial obligations after December 31 2008.
Federal Loans- the company loan request and plan was submitted to the Senate on Tuesday December 2 2008. The plan focuses on GM retaining four core brands and selling/ closing Hummer, Saab and Saturn. The plan details the closing of 36 plants and to eliminate 20-30,000 additional jobs. The loan bill is expected to go before the Senate on Monday December 8, 2008. There is also a proposed bill for the automakers to reorganize under a prearranged bankruptcy that would have devastating consequences to the employees, retirees, dealers and suppliers of the automakers. The prearranged bankruptcy bill is heavily supported by Elizabeth Dole (R-NC) and Lindsey Graham (R-SC). Everyone needs to contact their senate and house representatives asking for their support of the federal loans. Direct phone line to Capitol switchboard-1-877-331-1223. They can connect you by your zip code if you do not know your representatives name.
Recommendations- the leadership voted to allow the union to modify two (2) provisions in the 2007 national agreement:
1. Allow the three companies to postpone the required contributions to the VEBA account that are due by 2010 to 2012.
2. Eliminate the Job Bank and negotiate a new provision to protect workers that otherwise would have been placed in the Jobs Bank program.
3. In return for these actions, the UAW seeks an equity stake in the company most likely in the form of a seat on the board of directors.
These changes would need to be ratified by the membership prior to change and would take effect no later than March 31 2009.
Attrition- VP Cal Rapson stated that a Special Attrition Package would be offered in 2009 providing that the loans are granted and that the government approves using some of the money for that purpose. No other details were provided.
SPO- the corporation notified the union in September that it intended to close three (3) PDC’s. There has been no further communication about this issue since that time. The union believes that the corporation has so many other larger issues to focus on other than consolidation within SPO. The three facilities were not identified.
For a copy of the 37 page plan submitted to the Senate and the presentation from Steve Girsky please visit www.uaw.org.
The concessions last year were huge....but if the jobs bank still exist, then it's still not a fair system.
I think the jobs bank is probably the biggest issue for the UAW as far as public relations. Any kind of hiring mandate like that looks really bad.
They really need to get rid of this. If you are laid off, then they should file for unemployment. It's not fair to collect wages for no work indefinately. Maybe you should be entitled to some kind of severance if you've been there a while, but not indefinate pay. If General Motors is building a new factory in another state, maybe some kind of program should be in place to move these workers.
The current jobs bank makes it impossible to shrink their workforce. I know it's designed to entice General Motors and Ford to keep the jobs in Michigan, but it's just hurting them now.
I think it's a great idea for the UAW to own a portion of General Motors, but they need to buy in like everyone else.
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