2 ¼ months vacation ---- without pay.

Slumping sales and growing inventories have GM idling most U.S. factories for up to nine weeks this summer

Well now, that will sure take a "chunk" of Unemployment Funds and decrease IRS tax collections for the summer months.

Not good for recooping the Post Turtle's Stimulus spending, now is it.



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Actually Sam, the UAW employees will get most of their pay.

Where do you get that from Cato? I couldn't find anything that said employees would be paid.

Aaron wrote:Where do you get that from Cato? I couldn't find anything that said employees would be paid.

I heard Mark Steyn on Rush's show say that they will get paid...

Cato wrote:Actually Sam, the UAW employees will get most of their pay.

And will the GM corporate executives, too, get paid during the vacation?

I wonder why there's nothing about it online, given that it would kind of make taking 9 weeks off a moot point, unless of course the UAW were paying the wages out of union funds.

UAW workers affected will be placed on temporary layoff and receive state unemployment benefits and company supplemental pay that roughly equals about 70% of their gross pay.

I'd say 70% is most.

There will be a “skeleton crew” working at all plants, both GM and vendor facilities, but production will halt. Trucks will not be rolling, railroads will not be pulling, utilities will not be consumed, etc.

All vendors will halt production for those same 9 weeks and give most of their employees temporary layoff slips.

Service businesses that cater to “on-the-job” GM and vendor employees will do likewise.

One saving grace is, most employers across the “manufacturing sector” from New England to the Mid-west schedule their employees “2 week vacation time” during the last 2 weeks of July or 1st 2 weeks of August. So in reality there will only be “hard times” for vendors for 7 weeks.

And that 70% is of their gross pay, not their net, and in most states, either has no taxes or less taxes coming out so most auto workers could be netting MORE money then they do now.

Thanks Stephanie.

YVW!

And that 70% is of their gross pay, not their net, and in most states, either has no taxes or less taxes coming out so most auto workers could be netting MORE money then they do now.

How so? What percent of less equals more?

Unemployment and whatever supplemental income they receive is taxable. I don't think SS & Medicare tax is piled on to it though.

Our prestigious President and democratic Congress made the first $3K (I believe) non-taxable. When it is taxed, it's at a lower rate.