Lay-Off Pay Plans

Archive Report

Income Security for Industrial Workers

Pay for Laid-Off Workers in the Auto Industry

A new type of unemployment benefit, guaranteeing laid-off workers up to 65 per cent of their regular wages during intermittent periods of idleness, will become available to about one million industrial workers during the coming summer. The clauses of a number of 1955 labor-management contracts which carried this feature are to go into force at various dates beginning June 1, 1956. As they become effective, the workers covered who are laid off during slack periods will be able to draw on a fund, supported solely by employer contributions, for cash benefits in addition to those received under state unemployment compensation systems.

The new benefit plan, applying now mainly in the automobile industry, does not ...

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