NewsTalk

Welcome to the archives for NewsTalk, an IBJ blog published from November 2007 through December 2010.

Gall about the jobs bank

December 4, 2008
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The jobs bank has come to symbolize whatever the general public thinks is wrong with the United Auto Workers and Detroit car companies.

For many years, the UAW contract has stipulated that laid-off workers be paid nearly their entire compensation. Now, because the jobs bank has become such a lightning rod, the UAW says it will suspend the benefit in the hope of persuading Congress to OK a bailout.

Toyota made news this year when it treated its workers much the same. It continued to pay laid-off assembly line workers even through production slowed and they werenâ??t needed. Yet, the decision wasnâ??t met with disdain.

Why are Americans repulsed about the UAW jobs bank but nod approvingly when Toyota keeps its workers on the payroll during slow stretches? Is the difference that Toyota workers keep training during their layoffs?
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