If there is no struggle, there is no progress.

- Frederick Douglas

Buy Foreign? Or Pay 12,000 Not To Work!

Another reason not to buy Ford, GM or Chrysler?

Naturally, boulder evasion means that GM is deeply and broadly into cost cutting: It is closing plants to kill its excess capacity, terminating many thousands of people, negotiating with the UAW to free itself at least partially from the nearly un-American JOBS bank, in which laid-off union members get paid for not working. How many people are in the JOBS bank? Analysts ask that repeatedly and are refused an answer, probably because GM thinks nothing can be gained by hanging a number out there that Wall Street and the press can beam their attention on. But Sean McAlinden, chief economist of the Center for Automotive Research, thinks there were 5,200 employees in the JOBS bank at the end of 2005. He figures the annual cost of each to GM is at least $100,000. [Read]

At an annual cost of over $500 million dollars to GM alone, these US automakers pay workers who do not work? Buy American, Support Socialism? In total, more than 12,000 in JOBS Bank:

Ken Pool is making good money. On weekdays, he shows up at 7 a.m. at Ford Motor Co.'s Michigan Truck Plant in Wayne, signs in, and then starts working -- on a crossword puzzle. Pool hates the monotony, but the pay is good: more than $31 an hour, plus benefits.

"We just go in and play crossword puzzles, watch videos that someone brings in or read the newspaper," he says. "Otherwise, I've just sat."

Pool is one of more than 12,000 American autoworkers who, instead of installing windshields or bending sheet metal, spend their days counting the hours in a jobs bank set up by Detroit automakers and Delphi Corp. as part of an extraordinary job security agreement with the United Auto Workers union.
[Read]

This is why unions die; they kill the golden goose.


posted at 11:46:51 on 02/09/06 by clearpolitics - Category: Economics - [Permalink]

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