If you want to know why Ford and GM are having tough times right now, you can start by looking at their Jobs Bank program. The program was started back in the 80’s to ‘protect’ workers from layoffs.
Now, there are thousands of workers literally hanging out in rooms doing everything from sleeping, doing crossword puzzles, and offering community service and getting full time pay and benefits. This program is costing GM alone more than $400 million a year!
Yet another example of workers’ unions trying to stave off the last of their inefficient existence. Instead of protecting these workers from getting laid off, they only delayed the inevitable. The UAW even today seems to think that it is GM and Ford’s responsibility to give these workers something to do. The NPR report says that, “[u]nion officials say the companies should simply put those drawing checks from the Jobs Bank to work.”
Now that GM and Ford are both in the hot seat with investors and are in trouble waters, it is very likely that something to the tune of, ‘stop wasting $400 million dollars a year on workers we don’t need!’ will be said by the likes of Kirk Kerkorian. If I was one of the largest shareholders in GM or Ford, I would be yelling this at the top of my lungs ever so less eloquently.