“The real problem here is that [Banking Committee chairman Chris] Dodd doesn’t understand the scope of the severance payments that the UAW gets,” Morici tells me. “They go in the jobs bank and they stay there forever. My feeling is that [the Big Three] are at fault for letting the jobs bank continue after these last labor negotiations and agreeing to $105,000 buyouts. The whole situation is absurd.”
The buyouts of that size ($105,000) are one time only, come from the pension fund and equal three years of pension, with no continued health care after leaving the automaker. If a person agrees to take that amount that is the only pension they will get. In the long run the large payouts are, of course, less expensive than paying the pensions for life.
No one "stays in the jobs bank forever." They really don't exist anymore.
Can't wait until the MSM asks for bailouts. They are fear mongers and liars.
If the job banks don’t exist, as you claim, then why did the unions just propose that the UAW would allow the job banks to be scaled back?
No one “stays in the jobs bank forever.” They really don’t exist anymore. “
Not sure I understand your comment:
I have seen TV reports in the past 2 years that show GM and other auto workers that have been collecting the 95% take home pay for as long as 15 years......
Are you sure it isn’t still going on?