Money is getting tight for UAW-GM workers who have spent nearly three weeks on the picket line. On top of that, thousands of employees who work at auto suppliers are feeling the pinch, as suppliers are forced to cut back on production, too.þþSo a Michigan credit union is offering a limited loan just for strikers and those directly hit by the strike. þþ“They have not experienced a strike of this length in a long time,” said Theresa Dubiel, senior vice president of member experience at Lake Trust Credit Union, which has its headquarters in Brighton.þþ“They’re overwhelmed, and a little bit devastated by the lack of income,” she said.þþSome are not able to pay their everyday bills, including rent. As a result, the credit union has had a fairly strong response early on to its latest loan called a “Life Impact Loan.”þþThe terms are far more affordable than pulling out a credit card at annual rates of 18% or higher. þþBorrowers can get a loan of up to $4,000 for up to 24 months at a fixed rate of 6.75%.þþThe loan was launched Sept. 27 — roughly two weeks after the strike at GM began on Sept. 16. The loan is only offered to workers who have a letter proving that they’re on strike at GM or were laid off because of the strike at GM.þþMore: Why are so many unable to cover a $400 emergency?þþ“We jumped in on the cusp of this knowing that there would be need,” Dubiel said.þþþThrough Oct. 2, the credit union has made 14 such loans so far for an average amount of $2,957 for individual loans. In all, $41,400 has been lent to those impacted by the UAW-GM strike. More loans are likely to be made, as 38 credit union members have applied. þþThe loan has no upfront fees and no penalty is charged if it is paid off early. þþThe credit union has 22 branches in Michigan, going east to west from Detroit to Grand Haven and north to Mount Pleasant. It's a state-chartered credit union that is open to Michigan residents. þþThe loan is available to new members who qualify; someone who wants to take advantage of the loan would need to join the credit union as a member. Lake Trust membership is open to anyone who lives, works, or worships in Michigan.þþThe credit union said its also offering members who have been hit by the strike the opportunity to skip loan payments and waive fees.þþNot surprisingly, many people all across the U.S. economy do not have much cash sitting on the sidelines ready to go to cover emergencies.þþFour out of 10 households maintain that they would have trouble paying $400 for an unexpected expense, according to a Federal Reserve Board measure of financial well-being in 2018. The study was released in May. þþMany people just don't have a lot of wiggle room in their budgets.þþDejaun Craddock, 35, who was walking the picket line at GM Warren Transmission on Wednesday, said he knows how tough it can be to pay bills, especially for temporary workers who make less than permanent GM workers.þþCraddock used to make about $17 an hour as a temporary worker at the plant on Mound Road until he was laid off in June. Warren Transmission, closed in August, was among the facilities that GM deemed as ÿunallocated.ÿ Others include Lordstown Assembly, Detroit-Hamtramck Assembly and Baltimore Operations.þþCraddock said he's been fortunate enough to find another job as a nurse tech at Ascension St. John Hospital and now makes $20 an hour. þþHe cannot imagine how anyone could survive on just $250 a week in strike pay. And he can understand how some people could need to borrow some money. þþÿIf this continues,ÿ he said, ÿthey will need something.ÿ þþKaren Church, CEO of ELGA Credit Union in Burton, said her credit union's members, who include striking GM workers in Flint, are concerned.þþThe credit union is offering striking GM employees and contractors a special ÿloan skip-a-payÿ program where they can sign up to skip a payment on a current auto or personal loan. þþÿThey are taking advantage of the skip-a-pay offer,ÿ she said. ÿWe’ve had a few take out small personal loans to help them get by. The typical size is $1,000. We’re praying they’re back to work soon.ÿ þþStriking workers, of course, have to take a hard look at their own finances, cut back where they can and take advantage of various ways to reduce their bills. þþGhana Goodwin-Dye, former president of UAW Local 909, which represents the Warren hourly workers, said the union members have a food pantry and are thankful for donations from various members of the community.þþMembers at nearby UAW Local 1700, which represents auto workers at Fiat Chrysler Automobiles, took up collections on their own, she said, to buy Meijer gift cards for the strikers, too. þþGM is losing millions each day of the strike, she said, but workers are making major sacrifices to fight for health care, better wages and gains for temporary workers.þþYet, she said, a $250-a-week strike benefit won't come close to covering most of the bills for many families.þþÿRight after they saw that $250 check, I think they're very concerned,ÿ she said. þþSome families may have two workers on strike at GM. Others may have been dealing with medical bills or other financial challenges even before the strike began.þþ“Everyone has different household bills. Everyone has to manage to their own household,” said Lake Trust's Dubiel.þþ“We all live a different financial life.ÿ
Source: Detroit Free Press
