After reaching a mutual agreement with the UAW, Chrysler LLC, Ford Motor Company, General Motors have all announced that they will no longer host the UAW-created jobs bank. First among the Detroit 3 to sever ties, Chrysler closed their jobs bank on January 26, releasing about 1,000 workers from “employment.” Quick to follow suit, GM announced today that it will officially suspend their jobs bank on February 2, sending 1,600 UAW workers to the unemployment line. According to GM spokesperson Tony Sapienza, those 1,600 workers will then receive a small stipend from The General as well as state employment benefits, the total of which should accumulate to equal roughly 72% of their original pay. Ford Motors has yet to announce a definitive date for their policy to take effect.
At the very least a maneuver that will put a considerable chunk back in the ailing automakers respective wallets, the decision to close the job banks was made in part to satisfy the federal government’s order that all recipients of the auto bailout funds present marked financial improvement by February 17.