So the president of the UAW announced that they have agreed to make further concessions to help prevent the eventual collapse of the Big Three US automakers. I am an open minded person and usually support someone getting a leg up where possible. But when I ever heard on the news that these guys have this little nugget called the “job bank” I almost fell off my chair.

   Now this may not be news for some people but in my limited years in the adult work world I never fathomed such a benefit. This, like so many other things, seem to be throw backs to different times where worker right were not protected. The fact that they are paid for up to 95% of their salary and the car companies are legally obligated to fund this program is beyond me. No wonder they are going bankrupt, they pay several thousand people a month that are not contributing to productivity in any way. And the kicker is that as it stands now there are no restrictions on this program. If one so chooses, they could collect from this program indefinitely.

   The UAW has agreed to suspend payment to this program temporarily and to possibly add some time restrictions. They have also agreed to let the automakers delay payment to the UAW trust that will fund the pensions of retired workers. A gentlemen on the news they interviewed said this could save them over 1 billion dollars.

   As an update to the article I wrote originally ( Bailout of US Big 3 Bad ), about the automakers going to congress for money in their private jets I am happy to write that on their second visit they drove the entire trip in hybrid cars. Granted these could have been the Lexis RX or something of that caliber but I guess something is better than nothing. The Ford CEO also conceded to taking a dollar salary if they ultimately need the nine billion dollar line of credit they are requesting. All three also stated they would be selling their jets, wow! And by wow I mean, what the double h-e hockey sticks will that do for them. I understand this is a publicity thing but lets hear about how you are saving your companies and preventing the massive fall out everyone is predicting would occur if there was bankruptcy.

   From what I have read I get a strong sense that there will be a bill to bailout the autos and that it will be passed. Whether or not the companies take the current disparity seriously remains to be seen. I agree with a guest who was on CNBC Squawk Box that these companies need to clean house and hire a management team that will run these companies productively and drive innovation. In the end tomorrow is a new day, we shall see what it brings.

~Matt