News, GM to end controversial 'jobs bank' Monday. (credit, dealership, 2009)

[John1960]

DETROIT — General Motors (GM) plans to end Monday a controversial program that pays unionized workers who are not working, the company said Wednesday.

Chrysler ended a similar program earlier this week.

GM to end controversial 'jobs bank' Monday - USATODAY.com

[Dexterguy]

Ford will be closing theirs as well, it was a good program for thousands of unemployed workers here in SE Michigan. I suppose, that all of those people will now have to file for unemployment benefits.

I just hope that the national economy starts to make a turn around.

[wanneroo]

About time.

Part of the problem with these companies has been to pay people to be unproductive. The game is up. I've heard of people sitting on their butt in these job banks for years and the public wonders why the big 3 is financially strapped.

[maf763]

The state of Michigan must be loving this.

[wheelsup]

Originally Posted by wanneroo

About time.

Part of the problem with these companies has been to pay people to be unproductive. The game is up. I've heard of people sitting on their butt in these job banks for years and the public wonders why the big 3 is financially strapped.

It's not that they wanted to, it's because the "Big 3" decided it was better to make cars in Mexico and pay a company to do it there and in addition pay the worker in the States.

The job bank was designed as a form of "scope" or job protection, the union tried to prevent outsourcing of their jobs and had hoped management wouldn't pay two people to do the job. Management, in their infinite wisdom, thought otherwise.

People like to point to the workers like it's their fault the company can't design a high quality car like the Japanese have. This is strictly a management failure, it has nothing to do with the UAW.

Less well paying jobs in the US = worse economy in the US. More outsourcing will just continue to cut the economy off at it's knees.

[wanneroo]

Originally Posted by wheelsup

It's not that they wanted to, it's because the "Big 3" decided it was better to make cars in Mexico and pay a company to do it there and in addition pay the worker in the States.

The job bank was designed as a form of "scope" or job protection, the union tried to prevent outsourcing of their jobs and had hoped management wouldn't pay two people to do the job. Management, in their infinite wisdom, thought otherwise.

People like to point to the workers like it's their fault the company can't design a high quality car like the Japanese have. This is strictly a management failure, it has nothing to do with the UAW.

Less well paying jobs in the US = worse economy in the US. More outsourcing will just continue to cut the economy off at it's knees.

I'd outsource to a foreign company too if I had to deal with a "jobs bank" paying people to be unproductive.

That's what some people out there don't get. The more regulations, unions, taxes and other nonsense you force on companies the more they go overseas.

[wheelsup]

No you don't get it. If the jobs weren't outsourced to begin with there would be no one in the job bank. There are people in the job bank because the jobs were outsourced. A simple cause and effect.

The job bank was designed to try to make it costly for the manufacturer to outsource jobs, therefore preventing it from happening. The UAW didn't want to have members sitting around doing nothing, they would rather them be building cars and trucks, bringing income to their Company. Again, management stepped over a dollar to save a dime but in the end get their wish, the public, who has no idea what it was about, is crying afoul and in effect bringing shame to the union.

[wanneroo]

Originally Posted by wheelsup

No you don't get it. If the jobs weren't outsourced to begin with there would be no one in the job bank. There are people in the job bank because the jobs were outsourced. A simple cause and effect.

The job bank was designed to try to make it costly for the manufacturer to outsource jobs, therefore preventing it from happening. The UAW didn't want to have members sitting around doing nothing, they would rather them be building cars and trucks, bringing income to their Company. Again, management stepped over a dollar to save a dime but in the end get their wish, the public, who has no idea what it was about, is crying afoul and in effect bringing shame to the union.

Apparently you have never run a business in your life.

If you do you'd know that the more people make it more expensive for you to do business, the more you seek out alternatives.

The southern USA has a thriving automotive business and it's because they are not dragging silly stuff like job banks around their ankles.

People have been sitting on their butts in the "job bank" since the 70's if not before. Long before "outsourcing" even existed.

The game is up. We can't pay people to sit on their butt. The numbers don't add up. Businesses do not exist to give jobs. They exist to make a profit and provide a service. If you don't do that you have no jobs.

[wheelsup]

In the end I suppose America will get what it is coming to us. The more we outsource well paying jobs overseas or subcontract out work, the more home values will fall. If you're a business that caters to the middle class you will continue to lose business as people cut back on spending. Telecommunications companies, the restaurant industry, car dealerships, entertainment companies from movie theaters to theme parks, the list is endless. They will all continue to get downsized. Even the second largest owner of mall properties is filing for bankruptcy.

The auto industry is the tip of the iceberg, however it's important because it was what kicked off the middle class to begin with (Source: Time Magazine). Henry Ford actually deserves a lot of credit. Nothing is made in America anymore, no wonder our walls are crumbling, and throwing billions and trillions of dollars at our problem won't do ####. We look at disdain workers who make $14/hr to start to make our cars and instead want Mateo in Mexico to work for 100 pesos/day to make them.

I completely understand that businesses do not exist to provide jobs. I am certainly a capitalist. However as time goes on I sincerely believe the dividing line between rich, poor, and middle class will continue to move in favor of the rich. My pay check depends upon the middle class having money to spend on plane tickets to go on vacation, and on businesses to spend on business trips. Almost $20 billion in bonuses paid out to wall street workers with American's tax money. Unbelievable. What's even funnier is to hear people DEFEND it. If things don't start changing we will have nationwide riots on our hands in 5-10 years.

[texdav]

The real problem is that the WE are not the real growing market.Besides it was fine when we were the worlds producer and sold to much of the world at a inflated price for them. In the end we have just become less competitive.The difference between the rich and the poor will climb as we become the less educated and less motivated work force.A large percentage of the population is becoming totally dependent on others thru government programs becuase of this.At the same time the median standard of living as increrased.