DETROIT -- The UAW signaled its willingness to give Ford Motor Co. the same bailout concessions as General Motors and Chrysler LLC when it agreed to permit Ford to terminate its Jobs Bank.
Ford announced the Jobs Bank elimination during todays fourth-quarter earnings call. About 1,500 workers in the bank this quarter will be moved to state unemployment and Ford-provided supplemental benefits unless they are reassigned to active jobs, Ford CFO Lewis Booth said during the call.
Booth said he expected a significant number to be reassigned to active jobs.
Earlier this month, the UAW gave Chrysler and GM approval to terminate their Jobs Banks. A UAW spokeswoman declined to comment.
The Jobs Bank pays nearly 100 percent of wages and benefits to workers who have exhausted their unemployment. Unemployment and supplemental benefits represent about 72 percent of gross pay.
The elimination of the Jobs Banks was a condition of federal loans approved for GM and Chrysler in December. The automakers have until Feb. 17, to restructure their labor agreements and debt or risk having the federal government call in the loans.
Although Ford isnt borrowing any federal money, senior executives have expressed their desire for the UAW to provide pattern concessions to those given GM and Chrysler. The UAW typically treats the Detroit 3 in like manner in its labor contracts.
Ford is asking for a $9 billion emergency credit line to be made available in the event that market conditions deteriorate significantly from already depressed levels.