Jobs Bank ends for Chrysler employees

Posted by LS

NEW ORLEANS (AP) - A union official says Chrysler has eliminated the controversial "jobs bank" program that gives union workers most of their pay and benefits while they are laid off.

But workers will continue to be paid at least a portion of their wages while the company negotiates the program with the United Auto Workers.

The jobs bank was the object of much derision during congressional hearings last year over the Detroit Three automakers' request for government loans.

A letter sent to union members by United Auto Workers Vice President General Holiefield says the jobs bank will end Monday.

Elimination of the jobs bank is one of the terms of up to $7 billion in loans to Chrysler from the Treasury Department. The struggling automaker has received $4 billion from the government and is expecting to get another $3 billion.

(Copyright 2009 by The Associated Press. All Rights Reserved.)