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GM will end 'jobs bank' on Monday

NEW YORK — General Motors Corp.'s "jobs bank" program will end Monday, following a similar move at Chrysler that helps satisfy the conditions the government imposed when it lent the automakers $17.4 billion late last year.

The program gives union workers at the Detroit Three most of their pay and benefits while they are laid off — sometimes for years. It was the target of much ire during the companies' requests for a federal bailout.

GM spokesman Tony Sapienza said Wednesday that the 1,600 GM workers in the jobs bank will be placed on layoff and will need to file for unemployment. They'll receive about 72 percent of their salaries, paid by state unemployment benefits and GM subsidies. The workers also will get medical and other benefits from the company.

The length of time workers can receive unemployment benefits varies from state to state but usually amounts to about 48 weeks, Sapienza said. After that, they'll no longer get paid.

Christine Moroski, a spokeswoman for the United Auto Workers union, declined to comment.

Union officials said late last week that Chrysler was eliminating its jobs bank effective Jan. 26. Like at Detroit-based GM, Chrysler's affected workers will continue to receive supplemental pay to make up much of their wages after unemployment compensation.

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