Auto industry's 'Job Banks' program means unemployed workers keep getting paid

November 28, 1:37 PMBusiness ExaminerDarrell Proctor

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Automation meant fewer workers on auto assembly
lines - but those who were laid-off could make most
of their previous salaries even if they just
sat at home. (Dept. of Labor)

The auto industry went to Congress to ask for a handout, but automakers are still waiting for cash to come their way.

There were several arguments for and against an auto industry bailouit. Lawmakers were upset with some of the industry execs' perks, like corporate jets. Others on Capitol Hill said automakers should be given government help because of the impact an auto industry failure could have on the economy.

Then there are the "Job Banks."

This Fox News report outlines a program many Americans may not have heard of, a union-negotiated benefit for laid-off auto workers that allows them to keep collecting paychecks even when they're idled.

The government could help the industry, and the program could continue, this time at some taxpayer expense.

"Job Banks" began in 1984. It was part of the union contract between automakers and the United Auto Workers. Automakers wanted to keep the UAW happy at a time when the industry was doing well, but some workers were being let go as plants modernized.

So "Job Banks" was set up as a way for workers to continue on the payroll even if they weren't on the assembly line.

The Detroit News has said about 3,500 idled workers are currently in the program. The UAW's 2007 contract with General Motors says those folks get 100 percent of their pay if they report to a jobs bank and continue looking for work. Those who simply sit at home - not actively pursuing a new job - get 85 percent of their pay.

You can read all about it here.