The United Auto Workers will end its jobs-bank program at Chrysler LLC (C.XX) effective Jan. 26, while General Motors Corp. (GM) is in talks with the union about a similar deal.

The UAW alerted local union presidents at the third-largest U.S. auto maker via a letter delivered this week, according to a union official who asked not to be identified because the letter isn't public.

Chrysler was unavailable for comment, but GM confirmed its own discussions with the UAW.

Ford Motor Co. (F) spokeswoman Marcey Evans had no comment on whether the company was talking to the UAW about its jobs bank.

However, Ford has insisted that it wants to share in any of the concessions granted to the other automakers.

Ford has not yet taken the government loans.

Ford has about 1,400 workers in the bank as of November receiving anywhere from 80% to 100% of their pay.

The major U.S. auto makers, under current contracts, are required to place workers in the job bank instead of firing them when production is halted.

Those workers receive about 80% of their pay with the majority of that money coming from the company and the remainder from federal unemployment contracts.

Chrysler has been trying to hammer out new cost-cutting measures from unions and other stakeholders to show the federal government that it is restructuring after receiving $4 billion in low interest loans. It is still waiting on an an additional $3 billion in support.

The UAW said in December it was considering ending the jobs-bank requirement.

UAW President Ron Gettelfinger said earlier this week that he was comfortable in meeting a federal-government deadline of Feb. 17 for Chrysler to present a viable restructuring plan, including UAW concessions.

GM faces a similar deadline to secure its own federal aid.

-By Jeff Bennett, Dow Jones Newswires; 248-204-5532; jeff.bennett@dowjones.com

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