GM Looking To Get Rid Of The Job Bank?

[Guest Josh]

DETROIT - The financial safety net that cushions General Motors Corp. union workers during downturns, a program called the jobs bank, could be targeted for elimination just as the company seeks to cut 30,000 jobs.

GM's plans outlined Monday to stop production at 10 U.S. facilities will increase only the number of autoworkers in the jobs bank, experts who follow the industry said.

Under the program, initially agreed to with the UAW in contract negotiations in 1984, the three Detroit automakers pay hourly workers full wages and benefits even when a plant has closed or production stops. The companies agreed to the program so the UAW wouldn't fight new measures to increase plant efficiency.

Ending the jobs bank, leaving workers without a steady paycheck, could strike yet another blow to Michigan's weakened economy, where job losses are expected to continue for a sixth year in 2006.

But with GM and Ford Motor Co. selling fewer cars and trucks in the United States, what was once a temporary cost to ease workers through a short downturn has become a permanent drag on earnings.

William Matthews, a worker at GM's stamping plant in Indianapolis, and former president of UAW Local 579 in Illinois, said the union may be willing to give up the jobs bank.

"I don't know that it's going to be a big priority for the UAW," he said. "I think they're more worried trying to hold on to what they've got left."

Full Story: http://www.azcentral.com/business/articles/1125gmjobs25.html

[hyperv6]

losing th Job Banks are a very key part to help GM get their MFG cost in line with 4N compitition. Now that they are custting capacity at masny plants and doing it fairly, it will be very inportant to remove the job bank. How many of todays companies have to keep paying people to stay home even if they don't need them. I think the UAW is finally understanding that you may have to lose a leg to save the rest of the body.

[thegriffon]

If the UAW is seriously willing to concede this to GM, they need to be telling people now, so the change won't be so traumatic when the contract is changed in 2007.

[prototype66]

Its a reality thats time has come. The whole thing is so abused as it is that the original purpose was out the window as soon as it began.Not one other corperation of any kind pays full for not working.Most every one else is limited to the unwelcome,uneventful,underpayed,unenjoyable expwerience of unemployment(That does not pay full benifets and full healthcare) Yes if it was offered to me back then hell yes i would take it but reality sets in quick when the bread and butter runs out.We all know when to cut back (except the suits by the way) Why havent the big dogs taken huge paycuts to help out their sinking ship. The MAJORITY of the problems with GM lye squarely on their decitions and not on the workforce that keeps the corperation running!Yes job baks is wasteful but HUGE sallerys and ENORMOUS BONUSES are criminal.Where is the "YOU SUCK" clause in their contract? imo (sorry im so worked up, my livelyhood depends on sales of their product.Lets fix the f#@% ups now!.

[Drew Dowdell]

Actually, didn't Wagoneer take about a 50% paycut?

[the_yellow_dart]

Its a reality thats time has come. The whole thing is so abused as it is that the original purpose was out the window as soon as it began.Not one other corperation of any kind pays full for not working.Most every one else is limited to the unwelcome,uneventful,underpayed,unenjoyable expwerience of unemployment(That does not pay full benifets and full healthcare)
Yes if it was offered to me back then hell yes i would take it but reality sets in quick when the bread and butter runs out.We all know when to cut back (except the suits by the way) Why havent the big dogs taken huge paycuts to help out their sinking ship. The MAJORITY of the problems with GM lye squarely on their decitions and not on the workforce that keeps the corperation running!Yes job baks is wasteful but HUGE sallerys and ENORMOUS BONUSES are criminal.Where is the "YOU SUCK" clause in their contract? imo (sorry im so worked up, my livelyhood depends on sales of their product.Lets fix the f#@% ups now!.

[post="48207"]<{POST_SNAPBACK}>[/post]

I work for a software consulting company. I get paid a salary, and my company gets paid hourly for my work by the company asking for the consulting. When there is no contract for me, I still get paid. Since the company gets paid much more for our uptime than they pay us, they can afford to pay for downtime.

[aaaantoine]

How much money is GM losing to the job bank? Is there a dollar figure on that somewhere? How great is its impact on GM's bottom line? Hell, even the people IN the bank should understand that getting paid for doing nothing can't last forever.

[cmattson]

If the UAW is seriously willing to concede this to GM, they need to be telling people now, so the change won't be so traumatic when the contract is changed in 2007.

That's great speculation. It softens the blow (those affected see it comming). A leak like this can also be a trial-baloon of sorts. Let the idea out and see what sort of response it gets. Either way, it's very encouraging to see that the UAW is willing to make concessions to this level.

[jbartley]

fools. FOOLS. to think they could just sit on their butts and make almost full salary. Where else in the world do they think there is a company that will pay them to do that? It's going to hurt come april/may, as these workers live in "UAW FANTASY Land!"

[prototype66]

I work for a software consulting company. I get paid a salary, and my company gets paid hourly for my work by the company asking for the consulting. When there is no contract for me, I still get paid. Since the company gets paid much more for our uptime than they pay us, they can afford to pay for downtime.

[post="48214"]<{POST_SNAPBACK}>[/post]

True this synario doesn't hold true for all, yet does your company have as many employees building product thats sales are in a 5 year slump?(so to speak)Or better yet does your company pay you not to work so they can sell what they already have too much of already?Of a product thats sales are REALLY REALLY SLOW! im not saying its just the jobs bank draining the whole corp, yet, if sales are this slow and have been declining steadily this long, how long can they afford to pay them not to work when the sales of what they build to pay them not to work ins't there? see my point? Its just ANOTHER leak in the giant GM plumbing problems.If you leak a gallon an hour and only put in 3/4 gallon an hour .................................... :blink: Edited November 25, 2005 by prototype66

[Bluecollar]

fools. FOOLS. to think they could just sit on their butts and make almost full salary.

Where else in the world do they think there is a company that will pay them to do that?

It's going to hurt come april/may, as these workers live in "UAW FANTASY Land!"

[post="48247"]<{POST_SNAPBACK}>[/post]

Why would a person be a fool to take advantage of a benefit negotiated for them by their union with the company they work for. I do not see the need to research the benefit worldwide before using it. Do you not file for a tax refund because they are not allowed in other countries?

Would it not be more accurate to label as fools the GM negotiators who agreed to this benefit in the first place? Of course that would suggest that the upper management at GM at that time did not know what they were doing. Maybe if Roger Smith hadn't expanded GM into the south with the intent of breaking the union the corporation would not have been so bloated with assembly plants.

Believe me I do not live in UAW fantasy land. I live in Michigan where you would have to be blind not to see the manufacturing jobs disapearing steadily over the last decade. I have wondered for a long time just who the hell is driving the bus at GM. It seems the driver has no clue where he is headed or how to get there.

[CaddyXLR-V]

They are only fools if they expected it to stay that way forever. I think the UAW leaders have some fault, and bargaining for too much, and that is why they are steadily losing members. The companies that employ those workers cant afford to pay them anymore.

[prototype66]

They are only fools if they expected it to stay that way forever. I think the UAW leaders have some fault, and bargaining for too much, and that is why they are steadily losing members. The companies that employ those workers cant afford to pay them anymore.

[post="48409"]<{POST_SNAPBACK}>[/post]

The UAW and GM made all these wacked out deals back in the days of prosparity when GM was HUGE and could afford it.(flash forward 30 years)not that way anymore.Ill say it again,if I were offered that job/ benefit hell yes i would take it.BUT I tried for 20 years to get in,no go! Those days are over, the market is TOOOOTALY different! just a thought.

[razoredge]

Well Im going to assume, back in 84, after watching the first bout of job deportation the UAW asked itself what to do to protect their work interests. Job banks ! Well GM did not put the workers to work and keep investment dollars at home and decided to pay double incomes. I actually commend the UAW for this plan, too bad it did not work. Management and stocktraders only care about the short term so somehow they got double screwed on mis use of job banks That said there can be no more job banks. Not working this time. The UAW workers should see this and be more than willing ot let job banks go. Those eligible for retirement should do so then younger employees in the job banks can have work if they are willing to relocate to another plant, if that be the case. Seems like the UAW and GM has a fairly easy out of much of the current problems. early retirements, no more job banks, and no more investing in stupid foreign companies and blameing future financial problems on your employees. Of course it wouldnt hurt if our government put a choke collar on those frothin healthcare providers and insurance companies. Then they could put all Japanese concerns back out to sea where they belong. :lol:

[Cortazzo]

The jobs bank has got to go, that is the biggest problem i have with the UAW, that and not paying anything for healthcare. Their salaries aren't rediculous when taken without benefits. Once the jobs bank goes, and they renegotiate the contract, Delphi comes out of bankruptcy as a lower cost provider of GMs parts, and their new cars and trucks replaces the age old trucks they are selling right now, I bet GM can comeback and be profitable for the future.

[Hey Now]

How much money is GM losing to the job bank?  Is there a dollar figure on that somewhere?  How great is its impact on GM's bottom line?

[post="48223"]<{POST_SNAPBACK}>[/post]

Depending on what article you read, I think its anywhere from $700-$800 million per year. GM doesn't disclose the exact amount, so any numbers are guesstimates based on # of workers and average pay.

By the way, $800 million is enough to finance a brand new platform/architecture. Think of what could be done with that kind of dough if it was put back into the product portfolio.

[regfootball]

I work for a software consulting company. I get paid a salary, and my company gets paid hourly for my work by the company asking for the consulting. When there is no contract for me, I still get paid. Since the company gets paid much more for our uptime than they pay us, they can afford to pay for downtime.

[post="48214"]<{POST_SNAPBACK}>[/post]

give it time, you'll be OUTSOURCED.

[turbo200]

Depending on what article you read, I think its anywhere from $700-$800 million per year.  GM doesn't disclose the exact amount, so any numbers are guesstimates based on # of workers and average pay.

By the way, $800 million is enough to finance a brand new platform/architecture.  Think of what could be done with that kind of dough if it was put back into the product portfolio.

[post="48498"]<{POST_SNAPBACK}>[/post]

it's key to get rid of these job banks.

[Chicagoland]

When those workers are sitting around should be required to take classes in real world skills to get them another job, once the gravy train ends.

[thegriffon]

give it time, you'll be OUTSOURCED.

[post="49413"]<{POST_SNAPBACK}>[/post]

Err, Reg, he is the outsourcing.

[daves87rs]

Why would a person be a fool to take advantage of a benefit negotiated for them by their union with the company they work for. I do not see the need to research the benefit worldwide before using it. Do you not file for a tax refund because they are not allowed in other countries?

Would it not be more accurate to label as fools the GM negotiators who agreed to this benefit in the first place? Of course that would suggest that the upper management at GM at that time did not know what they were doing. Maybe if Roger Smith hadn't expanded GM into the south with the intent of breaking the union the corporation would not have been so bloated with assembly plants.

Believe me I do not live in UAW fantasy land. I live in Michigan where you would have to be blind not to see the manufacturing jobs disapearing steadily over the last decade. I have wondered for a long time just who the hell is driving the bus at GM. It seems the driver has no clue where he is headed or how to get there.

[post="48393"]<{POST_SNAPBACK}>[/post]

It should of never happened in the first place, and even then never helped my
dad. If there is no work, why the heck should you be there?

It's simply too bad for Michigan...they saw it coming..just like GM..and still
did nothing.

How can you pity stupidity?

Times change..change with them or suffer a not-so -happy fate...

As far as that benefit-I blame the UAW for being very short sighted that the idea
of that would even work....

[daves87rs]

If the UAW is seriously willing to concede this to GM, they need to be telling people now, so the change won't be so traumatic when the contract is changed in 2007.

[post="48173"]<{POST_SNAPBACK}>[/post]

Quoted for truth.

Very good chance that it will happen...