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


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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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Comments (15)
  1. Why just Republicans? Decent politicians in BOTH parties should have been UP IN ARMS against the RIDICULOUS Jobs Bank Racket, and not just NOW that it made GM Bankrupt, but from the time they allowed it to exist!
     
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  2. Why are we punishing companies for taking care of their employees? What do the GM employees do when their retirements and health care are cut, and their company is forced to lay them off and move their jobs to other countries? It seems that the unions have forced the automakers to take care of their employees, is that bad? When the government forces changes, who will cover the employees then? The taxpayers, through welfare? Why is that better? Perhaps we should require all automakers to take care of their employees like the US automakers do, instead of making the US automakers cut their benefits.
     
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  3. Mark:
    This blog was NOT about anybody "taking care" of any employee, but about the scandalous, INFAMOUS JOBS BANK program the UAW and the Detroit 3 have, which pays workers FULL TIME to do NOTHING.
    Is this the4 ethic you want to teach your children?
    $73 an hour to do NOTHING?
    ABSOLUTELY SHAMEFUL.
    At least Toyota, when it shut down its tundra plant in TX, and kept paying its wqorkers, not laying off even ONE of them, at least TZoyota ASKED THEM TO PERFORM laudable community service, sweep the streets, clean the parks of th elitter, etc , instead of lay idle and play cards and get drunk!
     
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  4. Ed ~ may I ask where you got your $73 an hour figure?
     
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  5. Mike B: Yes you may. These are NOT my figures, but widely public numbers, and they are NOT the worker's take home pay, but, the relevant number that the Detroit 3 have to spend per employee hour, including all benefits etc.
    The corresponding number for transplant workers at Toyota in the US is $48, I believe.
    BUT, please focus, the topic of this blog is the infamous, scandalous JOBS BANK program. Are you familiar with what a total outrage it is, to pay somebody a royal salary to do NOTHING?
     
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  6. I totally know what the jobs bank program is...I worked with it, not in it, with it, as a supervisor. Was pretty tough.
    We pay our government a royal salary...what do they do??? Rhetorical
     
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  7. What do you mean "the jobs bank program was pretty tough" (???)
    How tough can it be to be fully paid to do nothing?
    If the Detroit (onetime big) 3 were doing great, nobody would mind. But if they are bankrupt, and ask the taxpayers to cough up $25 billions (not millions!) every few months to stay alive (GM alone burns at least one billion every month), then it is a total scandal to pay people their full salaries and have t hem do absolutely nothing, not even take a training seminar to improve their skills?
     
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  8. I meant tough that you get workers from the jobs bank that aren't qualified for the work you need them to do that day.
    So then you suggest that GM lay them off and let the Govt. pick up the tab? How does that benefit the tax payers? What's the answer? Either way somebody is paying the wages.
     
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  9. Mike, that's an interesting view of the job bank, that it's saving the government money, but for a company with a market cap of about 1/100th that of Toyota, I think it's best to render that task unto Caesar. It's not as if these idled workers are going to be put back to work anytime soon.
     
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  10. The destruction of the jobs bank is just the latest for the UAW, as it comes to the end of its union life cycle. No matter how laudable unions were in the 30s and 40s, they are an anachronism today. Unfortunately, there is now more than ever the need for independent organizations that will fairly represent the white collar professionals--"unions" just have too much baggage.
     
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  11. 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!
     
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  12. 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.
     
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  13. 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...
     
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  14. Baloney- It's you attitude about foreign products, that has put us in this recssion! Jerk!
     
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  15. 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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