Ford Motor Company's recently-announced layoffs are the result of years of declining market share coupled with rising labor costs. But while the media have relayed information on Ford's declining market share, they've avoided discussing the role labor unions have had in driving up costs.
One such burden the media have ignored are "jobs banks" which companies like Ford and GM created in the mid-80s as a concession to the United Auto Workers. The Detroit Free Press reports that Ford pays out about $140 million per year from Ford's job bank, Guaranteed Employment Numbers (GEN), to some 1,100 presently-unemployed workers.
None of the Jan. 23 network newscasts mentioned the costly GEN program nor an alternative severance package Ford has for workers which would pay $15,000 per year in tuition for each fired worker.
For more, read "Newscasts Overlook Ford’s Costly Severance Programs."