Saturday, November 29, 2008

UAW no Good for Detroit

Is it any wonder that Unions have out lived their usefulness?

With the threat of strike costing billions of dollars Unions have finally reached Nirvana.

But to what end if it causes finical ruin for their hosts?

Automakers' Jobs Bank Program Pays Laid-Off Workers to Do Nothing

Thousands of laid-off auto workers get paid $31 an hour to sit around and do nothing all year under a controversial program that could continue even if American taxpayers bail out the American auto industry.

The program, called "Jobs Banks," has been around for 24 years. Some of the employees at jobs banks choose to do community service, but others do crossword puzzles and watch TV all day -- or just stare at a wall. If you're a laid-off auto worker, it's what comes with your pink slip, thanks to a deal struck in 1984 between the United Auto Workers and the Big Three carmakers.

The program is likely to continue if Congress approves a $25 billion bailout of the industry. But if the automakers go bankrupt, some analysts say, they may be able to eliminate the program, which would abruptly eliminate benefits to the workers in it.

Killing The Goose that laid the Golden Egg

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