The United Auto Workers said Wednesday it is willing to alter contracts with U.S. automakers and accept delayed payments of billions of dollars to health care trust fund in order to help the companies potentially secure $34 billion in government loans, the Associated Press reported.
UAW President Ron Gettelfinger said the union also will suspend its jobs bank, in which laid-off workers are paid up to 95% of their salaries while not working, AP said, but he did not give specifics or a timetable.
When auto company leaders went to Congress last month asking for government help for the ailing industry, some members criticized the companies for paying workers who are not on the job, AP said.
About 3,500 auto workers from General Motors Corp., Ford Motor Co. and Chrysler LLC are currently in jobs bank programs, AP reported.
GM was scheduled to pay more than $7.5 billion next year to the union-administered fund which will take over retiree health care payments on Jan. 1, 2010, AP said. Ford owes $6.3 billion to its trust fund at the end of this year, while Chrysler’s figures were unavailable, AP reported.
