Auto Loan Could Mean End Of Jobs Bank

by Gabe Bullard on December 19, 2008

General Motors and Chrysler stand to receive $17.4 billion in federal loans if they can restructure their businesses toward profitability.

The money for the loans comes from the $700 billion financial bailout, and none of it is set to go directly to Ford anytime soon. But United Auto Workers Local 862 President Rocky Comito says keeping GM and Chrysler afloat will boost consumer confidence and keep parts suppliers in business.

But part of the call for restructuring means ending the jobs bank program that provides assistance to laid off workers. Comito says he’s not sure if the union will sign off on that.

“We’re just waiting to see what will happen with the UAW. What, if any other concessions are asked about and then the negotiators will have to decide what they need to negotiate,” says Comito.

Earlier this month, the UAW approved a suspension of the jobs bank to keep the Big Three solvent.

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