Sunday, January 25, 2009

Chrysler jobs bank over for now?

Chrysler jobs bank ends Monday

The controversial jobs bank -- a program that allowed UAW workers to receive pay while not working -- ends Monday at Chrysler, the union has told its members.

In a letter obtained by the Free Press, General Holiefield, the UAW's vice president of the Chrysler department, told members that the change was to comply with the terms of the federal loan agreement that gave Chrysler $4 billion to stay afloat.

"Without this loan, the corporation would most certainly" have "been forced to file for bankruptcy protection," he wrote in the letter dated Thursday.

"In order to be in compliance with the mandate, the jobs bank will be eliminated effective Jan. 26," he added. "Employees that are either in the jobs bank or would have been in the bank will be placed on unemployment ... until such time that we have a clarification of all of the stipulations ... in the 'terms of agreement.' "

Chrysler told employees in a letter Friday that workers now in the jobs bank would be placed on "enhanced layoff," effective Monday, until a final agreement has been reached with the UAW.

Workers going into enhanced layoff were advised to apply for jobless benefits and told they will keep medical, dental and group life insurance during that time.

Holiefield advised members that the changes are temporary until negotiations are completed.

"It is important that everyone understand that these provisions will only be in effect until such time as the mandates from the U.S. Treasury Department have been clarified," he wrote.

So its not over til it over or?

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