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AFL-CIO-UAW Survival Guide
SURVIVING UNEMPLOYMENT

Step 1:  Prepare a Complete Household Budget

Getting control of your personal finances in important to survive unemployment.  Use a household budget worksheet to see where you spend your money and where you can save.  Do this as a family project.  Your budgeted expenses should included: 

• Fixed expenses - mortgage, rent taxes, insurance, loans, installment payments, credit card payments, child support and other fixed monthly payments.

• Variable monthly expenses - good, gas, repairs, dues, prescriptions, recreation, utilities and child care.

• Future expenses - Income/property tax and other outstanding debts.

Your budgeted income should include:

• Income

• Savings

• Severance pay

• Union strike assistance

• Unemployment compensation

• Accrued vacation pay

• Refund from pension funds

Step 2: List Assets

Other assets may include:

• Cash value of insurance policies

• Prepaid burial or funeral policies

• Equity in your home (the difference between the value of you home and the amount you owe on you home)

• Resale value of vehicles, boat, RV, etc.

Step 3: Set Priorities for your Expenses

List payments in order of importance.  This will help you pay first thing first when money is short.  The most important will be your mortgage or rent payment, followed by utilities, health insurance and car payments.  Child support or alimony payments (if any) are also high priority.

Step 4: Make a Complete List of Creditors

List the following information for each creditor:

• Name, address and phone number of the contact person

• Account number

• Total amount owed

• Payment schedule and amount

• Interest rates

Step 5:  Notify Your Creditors Before You Get Behind

Determine how much you can pay regularly on each bill.  If you need to negotiate a lower monthly payment than your creditors expect, notify them before you get behind.  Creditors are usually easier to work with when you let them know about your situation before a sever problem arises.  Contact Creditors in writing:

• Tell them you need to work out a plan for delaying, reducing or refinancing payments until you return to work

• Always include your account number, phone number and address in all correspondence

• Keep copies of your letters and follow up by phone

Step 6:  Pay What You Can

Even if you can't pay the amount creditors want, pay something regularly.  This keeps your overdue balance as low as possible and lets creditors know you are making a good faith effort.  Partial payment may keep your account from being turned over to a collection agency.

Step 7:  Stay in Touch with Creditors

After your first letter, keep in regular contact with you creditors.  This reassures them, show a responsive atitude and may keep them from harassing you.

IMPORTANT: DON'T IGNORE YOUR MAIL!  Sometimes trouble comes because folks ignore government agency inquiries or creditor requests for information.  That only makes thing worse.  If you do not understand notices or bills sent to you, call the person who sent the bill.

Step 8:  Stop Credit Purchases

Stop using all your credit cards.  Interest on most credit purchases is extremely high.  If you have advance warning that you'll be out of work, try to make larger payments to reduce the balance you owe.

Step 9:  Reduce Household Expenses

With your family, plan reductions in household expenses to stay within your budget.  To cut your food costs:

• Plan less expensive meal menus - use leftovers and prepare snacks from scratch.

• Adjust your buying habits - only shop when you need to, make a list and compare prices and brands.

• Use coupons

• Consider other shopping options - food co-operatives, farmers markets or going to a farm and picking your own.

To Cut your telephone bills:

• Switch to a money-saving rate plan

• Eliminate unnecessary call (measured service charges for calls by length and time of day)

• Make fewer long-distance calls (take advantage of lower evening and weekend rates)

• Cancel electronic phone features like "call waiting"

• Discontinue cell phones, e-mail services and pagers

To cut your energy and fuel costs:

• Turn off lights, TV and appliances when not in use

• Cut back on the use of "power hogs" like hair dryers

• Lower the thermostat on your hot water heater and furnace, or turn up you air conditioner, and dress accordingly.

• Wash and dry only full loads of clothes or dishes

• Eliminate unnecessary car trips

• Consult your local Consumer Credit Counseling Service

Step 10:  Sell What You Don't Need

Consider selling that extra vehicle or the boat and trailer you rarely use.  Look at your possessions to see which items could be sold or traded without really changing the way you live.  Talk to your landlord about doing minor repairs, cutting the lawn or doing other yard maintenance in place of rent.

Step 11:  Check into Other Financial Resources

• Life Insurance - Review your policy or talk to your insurance agent to see whether you can borrow against your policy.

• Pension Funds -  Talk to your union representative or employer to see whether you are owed a refund on your pension fund contribution or from other company funds

• You may be able to borrow against your 401(k) or Tax Deferred Account (TDA)
  

LOOKING FOR A JOB
Job Search Action Plan

Take stock of Yourself       

Find Out Who's Hiring       

Prepare for the Interview   

Step 1:  Take stock of Yourself

• List the job skills you've developed

• List skills you may have developed off the job

• Write out your employment history, listing all your previous jobs.  It will help to remind you of the skills you can offer and in filling out job applications

• Identify the working conditions you prefer

• Determine the pay and benefits you need (though changing jobs may require a cut in pay initially):

1. The lowest pay and benefits level you will accept                                                       

2. The chances for future wage increases and or/promotions as you stay on the job

3. The costs to you of accepting the job (day care, transportation, uniforms, tools)    

Step 2:  Find Out Who's Hiring

• Check newspaper ads, your local job service office and employment agencies for job openings

• Tell everyone you know that your are looking for work and ask them to watch of job openings

• Follow up on all job leads

Step 3:  Prepare for the Interview

• Find out as much as you can about the employer and the job opening before you apply or are interviewed.

• Check your appearance: be well groomed and dress appropriately

• Take to the interview:

1. A summary sheet of your work experience, skills and education

2. Your Social Security card and driver's license                               

3. Citizenship documents                                                                      

4. Reference list                                                                                     

• Consider how you might answer typical interview questions:

• Why are you interested in working for us?                                           

• What is your experience?                                                                      

• What makes you think you can fill the requirements of this job?       

• When filling out a job application:

1. Look over the entire form carefully, then follow all directions exactly

2. Complete the application in black or blue ink

3. Neatly print answers to all questions. If a question does not apply, write in "N/A" (not applicable) or a dash

4. Make certain that all the information you proved on the applications correct.  Take your employment history to help your remember names, addresses, phone numbers, dates

5. After completing the application, double-check to see that everything is correct

• During your interview:

• Sit up, Look alert and show that your are interested in the job.       

• When answering questions, be honest, to the point and confident

Send a thank you letter to the interviewer after the interview.

Remember; its up to you to convince the interviewer you have the skills to do the job and you want the work.

Getting The Help You Need

Your Best Resource is your Union.

Your Union Representative, union counselor, AFL-CIO Community Services Liaison or labor agency has information on assistance programs and services available in your community.  They can explain the eligibility requirements, benefits, applications processes and other facts you need to know.  Call your AFL-CIO central labor council for information.

There Are a Lot of Places to Get Help

Financial Assistance Programs

1. Unemployment Compensation

2. Trade Adjustment Assistance (TAA/(NAFTA) 

3. Early Retirement (Social Security)

4. Temporary Assistance to Needy Families (TNAF)

5. Supplemental Security Income (SSI)

Employment Programs and Services

1. AFL-CIO Working For America Institute

2. State Employment Services

3. Pell Grants

4. Workforce Investment Act (WIA)

5. Veterans' Job Subsidy Program

6. College or University Placement Offices

7. Temporary Labor Services

Food Programs

1. Food Stamps

2. Women, Infants and Children (WIC) Program

3. USDA Surplus Commodities

4. Emergency Food Allotments

5. School Breakfast and Lunch Programs

6. Community Meal Distribution Programs

7. House of Worship or Faith Ministry

Medical Assistance Programs and Services

1. Medicare (Social Security)

2. Medicaid (State)

3. Health Departments (County)

4. Community Health Clinics

5. Children's Health Insurance Programs

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Copyright © 1999 by UAW Local 909. All rights reserved.
Revised: 11 Apr 2007 16:45:38 -0400 .