Ron Gettelfinger, President of the UAW, announced yesterday that the UAW would agree to several concessions to help the Detroit 3 make it through their current cash crisis.
Gettelfinger said that the concessions would include suspending the Jobs Bank program and allowing the Detroit Three to delay making payments to a retiree health care trust in 2010. Changes to both of these programs can be made without renegotiating the contracts established last year.
The Jobs Bank program allows laid-off factory workers to receive up to 95 percent of their pay, sometimes for years. The government criticized Detroit for the program as it has seen this as a sign of Detroit’s excess. Both concessions made will help decrease Detroit’s ‘legacy costs’ at least momentarily, as both programs affect those no longer employed by the Detroit Three. There were no discussions of wage and benefit concessions for any of the current employees though.
Source: Automotive News