The U.S. auto industry has been out of business for about two months, affecting thousands of auto-making-related employees and supply chain workers. The FCA (Fiat Chrysler Group) issued a two-week supplementary unemployment payment until the federal unemployment payment came into effect. Because the federal payments are retroactive, the FCA wants to recover the supplementary unemployment benefits previously issued, totalling about $12 million.
According tomedia reports, the FCA said recently that during the outbreak shutdown, the company paid more than 24,000 hourly workers. The FCA requires employees to either opt for a one-time refund of the salary or deduct it from future pay.
The FCA says the workers receive an average of $500 more in unemployment benefits than the contract requires. The overpayment comes as a federal new crown-based pneumonia relief program retroactively increases workers’ unemployment benefits as of April 4, bringing their total compensation to more than the fca’s temporary redundancy contract with the UAW.
During the shutdown, workers would have been paid 74 per cent of their normal 40-hour weekly salary, which the FCA would have covered by the difference between the pay and the government’s unemployment benefits.
The FCA says employees can refund the wage in one lump sum or deduct $100 a week in wages. Jodi Tinson, a spokeswoman for the FCA, said in an e-mailed statement that “many people have paid off their extra pay” in one lump sum, but she declined to give an exact figure.
Brian Rothenberg, a spokesman for The UAW, said that while the FCA’s request for the return of wages would upset workers, he had not received any complaints about the matter.