The United Auto Workers has agreed to let General Motors terminate its Jobs Bank, providing the automaker with the same bailout concession made to Chrysler last week, GM confirmed Wednesday, January 28.
Starting Monday, February 2, the 1,600 GM workers now in the Jobs Bank must go on state unemployment and GM-funded supplemental benefits, said GM spokesman Tony Sapienza.
The combined unemployment and supplemental pay represents about 72 percent of standard weekly wages. The Jobs Bank represents nearly 100 percent.
The government made elimination of the Jobs Bank a condition for about $17.4 billion in rescue loans approved for GM and Chrysler last month.
The money-saving changes had to be negotiated with the UAW. Last week, the union let Chrysler shift its Jobs Bank workers onto unemployment and supplemental pay.
GM and Chrysler must show labor and debt restructuring by February 17, when the government will begin a review of their viability.
Ford executives say they also are interested in getting the same labor savings from the UAW as GM and Chrysler. Ford spokeswoman Marcey Evans would not comment on specific discussions with the UAW.
Sapienza said GM is also discussing supplemental pay with the union as part of current negotiations. Sen. Bob Corker, R-Tennessee, criticized the provision repeatedly when the automakers faced Congress for the loans late last year.