UAW To End "Job Banks" Program

UAW TO END "JOB BANKS" PROGRAM

Laid-off auto workers get paid hundred of million of dollar each year.  

UAW President Ron Gettelfinger announced today that he would possibly eliminate the job banks program in efforts to help Detroit stay competitive. 

The job banks program was established during the 1984 labor contract talks between the UAW and the Big Three. (Ford GM and Chrysler)

The union feels it is still hurting from the loss of over 500,000 employees during the recession of early 80’s and felt it had to protect the remaining employees.

In the attempts to win the support of the union to boost productivity through automation the Detroit automakers agreed on a plan that guarantees pay and benefits for union members whose employment fell victim to technological progress or plant restructuring's.

The union felt that by making it so expensive to layoff employees, it would deter the Automakers from outsourcing jobs to non union workers.

Their strategy worked!!  but at the expense of the domestic auto industry’s grip on being competitive.

According to the Detroit News, the jobs bank program currently has 3,500 workers down from 15,000 last year.

The average salary 
The Labor cost per hour, wages and benefits for hourly workers (Forbes)

• Ford: $70.51 ($141,020 per year)
• GM: $73.26 ($146,520 per year)
• Chrysler: $75.86 ($151,720 per year)

In the battle against the Asian and European automakers, Detroit has little hope to survive as long as program like this exist , The job banks program have become a major competitive disadvantage in a failing economy.

UAW BACKGROUND

The UAW has approximately 640,000 active members and over 500,000 retired members in the United States, Canada and Puerto Rico.

There are more than 800 local unions in the UAW. The UAW currently has 3,100 contracts with some 2,000 employers in the United States, Canada and Puerto Rico.

Since its founding in 1935, the UAW has consistently developed innovative partnerships with employers and negotiated industry-leading wages and benefits for its members. UAW members have benefited from a number of collective bargaining breakthroughs, including:

• the first employer-paid health insurance plan for industrial workers
• the first cost-of-living allowances
• a pioneering role in product quality improvements
• landmark job and income security provisions
• comprehensive training and educational programs

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