General Motors jobs bank to end Monday
January 29, 2009
General Motors Corp.'s "jobs bank" program will end Monday, following a similar move at Chrysler LLC that helps satisfy the conditions the government imposed when it lent the automakers $17.4 billion late last year.
The program gives union workers at the Detroit Three most of their pay and benefits while they are laid off — sometimes for years. It was the target of much ire during the companies' requests for a federal bailout.
GM spokesman Tony Sapienza said Wednesday that the 1,600 GM workers in the jobs bank will be placed on layoff and will need to file for unemployment. They'll receive about 72 percent of their salaries, paid by state unemployment benefits and GM subsidies. The workers also will get medical and other benefits from the company, according to a Jan. 28 AP report in Chicago Tribune.
Read about the Big Three bailout.