UAW Grants Concessions, Exec Warns of Depression

The plans painted the most dire portrait yet of the industry's woes — including the prospect of shuttered factories and massive job losses if Congress does not act quickly.

Amy Vollmar, 43, from Bowling Green, Ohio, a worker for Chrysler for the past 24 years, listens during a Chrysler rally at the Jeep plant in Toledo, Ohio, Wednesday, Dec. 3, 2008. (AP Photo/Madalyn Ruggiero)

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The much-derided "jobs bank" that permits laid-off workers to receive most of their pay was created in the mid-1980s as a trade-off to the UAW for increased factory automation. But the system became a symbol for the union's largess when workers were paid for years after their factories closed.

Gettelfinger said the union will suspend the bank, but he did not give specifics or a timetable.

"We're going to sit down and work out the mechanics," Gettelfinger said. "We're a little unclear on some of the issues."

Members of Congress criticized the automakers last month for paying laid-off workers, saying it's one reason why their labor costs are higher than competitors. About 3,500 workers from all three companies are now in the jobs bank.

Until the 2007 contract, workers could stay in the jobs bank indefinitely, but the new pact imposes time limits. Workers in the bank must report to local union halls. Sometimes they do charity work, but other times they do nothing.

Gettelfinger stopped short of saying the union would reopen its contracts but said it would return to the bargaining table to change some terms. Modifications would have to be ratified by members.

Delaying the health care trust payments will help the companies survive their cash shortages, which they say were brought on by the severe economic downturn and the worst U.S. sales in more than a quarter century.

The delay will have to be approved by federal courts, which already have blessed the trusts' formation.

Democratic House Speaker Nancy Pelosi has said she hopes Congress acts to help the automakers. Reid said he would advance a bill Monday in preparation for a possible auto bailout vote later in the week.

The automakers, humbled by criticism from their last visit, gave lengthy plans with minute details about how they plan to repay the government money.