The Associated Press is pointing out that one of the main concerns of the UAW and of the American automakers as the contract negotiations heat up is the jobs bank. The automakers believe that the jobs bank is one of the issues that is causing the losses in the American auto industry.
The jobs bank was set up two decades ago in an agreement between the UAW and the major auto manufacturers. In exchange for allowing the auto manufacturers leniency in automating the plants, the UAW could have a jobs bank.
Originally, if some one came back from sick leave, and there was not a place for that person at his or her regular plant, that person would be put in the jobs bank. While in the jobs bank, a person could make most of the regular pay until a job could be found.
When plants shut down, a union worker would be placed in the jobs bank if there was not an applicable position to find at another plant in the area. The point was to be a temporary measure, but that has not worked in practice.
There are more cases then not where people have been in the jobs bank for years. These people have been paid almost their entire wage and benefits for not working. The automakers have stated that between them, they have paid out billions of dollars a year to those who are in the jobs banks.
The goal of the automakers is to have a complete elimination of the jobs bank. They believe that the jobs bank is one of the areas that is keeping them from being competitive.
The UAW is interested in making some concessions with the jobs bank, but not to completely eliminate it. If the jobs bank was eliminated, and all of the workers laid off, this would be a substantial blow to the membership of the UAW.
A source that I have inside the UAW has told me that the jobs bank is going to be the biggest hurdle in the contractual negotiations this year. He believes that Ford, Chrysler, and GM will do everything that they can to eliminate the jobs bank. He also believes that the UAW is going to be requested to take the hit with nothing in return.
The jobs bank was set up two decades ago in an agreement between the UAW and the major auto manufacturers. In exchange for allowing the auto manufacturers leniency in automating the plants, the UAW could have a jobs bank.
Originally, if some one came back from sick leave, and there was not a place for that person at his or her regular plant, that person would be put in the jobs bank. While in the jobs bank, a person could make most of the regular pay until a job could be found.
When plants shut down, a union worker would be placed in the jobs bank if there was not an applicable position to find at another plant in the area. The point was to be a temporary measure, but that has not worked in practice.
There are more cases then not where people have been in the jobs bank for years. These people have been paid almost their entire wage and benefits for not working. The automakers have stated that between them, they have paid out billions of dollars a year to those who are in the jobs banks.
The goal of the automakers is to have a complete elimination of the jobs bank. They believe that the jobs bank is one of the areas that is keeping them from being competitive.
The UAW is interested in making some concessions with the jobs bank, but not to completely eliminate it. If the jobs bank was eliminated, and all of the workers laid off, this would be a substantial blow to the membership of the UAW.
A source that I have inside the UAW has told me that the jobs bank is going to be the biggest hurdle in the contractual negotiations this year. He believes that Ford, Chrysler, and GM will do everything that they can to eliminate the jobs bank. He also believes that the UAW is going to be requested to take the hit with nothing in return.
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