Skip to comments.Toyota to restart US auto plant, draws UAW ire
Posted on 06/18/2010 5:07:44 AM PDT by EBH
Toyota's announcement that it will resume construction of a car factory in Mississippi was a much-needed piece of good news for both the state struggling with persistent employment and the automaker trying to recover some goodwill after a recall crisis bruised its reputation.
But the decision drew fire from America's largest auto union, which accused Toyota of shifting production from a union plant to a nonunion facility.
Toyota promised to hire 2,000 workers at its nearly complete factory in Blue Springs, Mississippi, and start producing Corolla sedans by the end of next year.
The plant has been on hold since late 2008, when Toyota suspended construction as the economy fell apart and sales of new cars and trucks collapsed in the U.S.
But Toyota's decision to build Corollas there comes just weeks after announcing the sale of a California plant that also built the compact sedans.
To the United Auto Workers Union, the key difference was the California plant was unionized, while the Mississippi plant -- like the rest of Toyota's U.S. factories -- isn't.
(Excerpt) Read more at finance.yahoo.com ...
Unions are "negotiating" their members right out of the labor market.
When things like this happen...it amazes me how the members can't see it is their own leadership that has failed.
Union “leaders” are leaders like Obama. They are only in the game for the power.
Yes, we shifted production to non-union facilites. Union facilities sap our profits, decrease our flexibility, and hamper our productivity. Any other questions, mister...douchebag is it? Okay, Mister Douchebag, any questions?
No doubt the maoist will send a message to Toyota.
UAW has its own car company. That’s enough.
UAW has its own car company. That’s enough.
Well, duh ";^)
UAW Looks Toward Clawbacks by: Tom Lindmark May 28, 2010
The WSJ reported yesterday that Ron Gettelfinger, the outgoing President of the UAW, said that he expects that the resurrection of Chrysler and GM (MTLQQ.PK) will prompt the union to bargain to claw back some of the concessions they made to help the companies survive. He did not specify what the union intended to seek to have returned.
More on the UAW protecting the rest of us from the terrible, terrible scourge of insourcing.
UAW hasn’t cared about auto workers for decades.
It’s all about UAW leadership and how much power along with fat pension plans to can obtain for themselves.
Well, duh! Get a clue, Unions!.................
A more likely key difference was the plant was in California - with its taxes and regulations and high cost of doing business - rather than the fact that it was unionized.
“But the decision drew fire from America’s largest auto union, which accused Toyota of shifting production from a union plant to a nonunion facility.”
Aw, do you want fries with that, Moron ?
Probably the first (unions).
Auto plants are given a lot of concessions because the state and local communities rely on the payrolls to support the economy.
The difference between an independent payroll and a UAW payroll is amazing. Having moved 8 plants from UAW to non-union control, I’d put my money on the union factor in this.
I bet Pharaoh criticized the Jews for leaving Eygpt too.
Wrong. Both. UAW and CA taxes and regulation.
Hahahahaha. Made me spew my coffee.
Unions ARE a tax of sorts. Not in the sense that the government is stealing the money, but in the sense that the restrictive work rules and constant anti-productivity actions on the part of the union "leadership" is a significant drain. Union wages aren't really much different from those of non-union wages in the auto industry, but the contract rules are stifling.
Yeah well keep thinking that. I guarantee you that if the workforce in California voted the UAW out tomorrow the plant would still move.
How dare Toyota employ Americans?
Wasn’t the CA plant co-owned and operated by GM too?
You must have double posted because the UAW has two auto companies.
I don't think it's an either/or situation, both were contributing factors.
However, Toyota has had far superior production AND quality in all of it's non-union plants than it acheived in it's unionized plant.
Go Toyota. By building more facilities and looking to hre 2,000 folks, they are looking to a future of more car sales. Looks like the change of command at the UAW will lead to the union is going to start pushing GM and Chrysler for more bennies. This ought to be fun to watch since the union will be striking against obama. What will obama do then?
Just like any other business, you close the less profitable locations.
I am curious. What is starting pay for a autoworker in Mississippi vs. California ?
An equally important question would be 'what is the relative cost of living between the plant location in Mississippi and the one in California? The reason I mention this is that the teachers' union in Chattanooga was complaining a few months ago about their wages compared to teachers in New York. A letter-to-the-editor pointed out that that 3-bedroom house that one can buy in Chattanooga for $130,000 would be many times more expensive in New York. It was also noted that taxes in New York soaked up a far larger proportion of ones' wages than those in Chattanooga (despite RINO Ron Littlefield's best efforts). The point is, the net buying power is the figure that should be compared, not the gross wage.
Don’t know what the pay is, but a good example of a non union plant in the south is the Nissan plant in Nashville. They have been building vehicles since 1984. I had a chance to tour their plant and their claim was that they have never had to lay off workers. Plus they have some assemblers who have been there 20 years plus. Folks don’t stick with a job that long if they aren’t happy.
The Fremont plant (GM-owned) began in 1983 as a $300+ million joint venture. From the very beginning, Toyota was concerned about the UAW presence.
I’ll buy a new car from a non union company or restore an old one myself. Manufactures can make their own choices.
Just my opinion......an my money . Unions suck !
And that is bad because...?
I bet there are 2 reasons for Toyota to shift work to Mississippi from California. (1) The unions for obvious reasons and (2) California. I bet the difference is state and environmental regulations between MS and CA is stark. I would imagine that CA has more cumbersome regulations for Toyota to follow such that moving to MS is in itself has merit.
That’s OK, we have the UNION/Government nexus. You, me, your kids will all be debt slaves, serfs for government uions. The unions saw the future, the industry with the growth, power and wouldn’t go out of business and moved to that. Government.
CA taxes are a result of high cost of salaries, pensions of unionized government workers. So it’s really a union plus union, double union escape.
Was - they handed the keys to Toyota and walked away as part of their bankruptcy reorg. UAW didn’t complian about that tho’ - considering they walked away with 15% of Gov’t Motors.
There have to be a lot more than two. I would guess access to a an English speaking workforce figures into it, as well as far less draconian and punitive worker's comp laws.
Post 40 was supposed to go to you.
“To the United Auto Workers Union, the key difference was the California plant was unionized, while the Mississippi plant — like the rest of Toyota’s U.S. factories — isn’t.”
Right now, most autoworkers in the US make about the same, regardless of who they work for. $28/hr base pay, $55/hr fully loaded (base pay and all benefits.) GM, Ford and Chrysler UAW employees made about $78 an hour fully loaded before the reorganizations. The difference is the “give-backs” the UAW now wants to take back.
With the closing of NUMMI, there are no auto plants left in CA, tho’ Tesla has bought the plant and intends to produce their electric cars there. Can’t blame ‘em, they got a $1 billion plant for $40 million.
“shifting production from a union plant to a nonunion facility”
(In the voice of Bill Dana/Jose Jimenez:)
"Oh, don't say Yugo to a Toyota person!"
(In the voice of Bill Dana/Jose Jimenez:)
(Sigh) Just another reason why I love Freerepublic. Im sure the MSM would never quote Jose out of being non-PC
That's more better.......
The California plant, called New United Motor Manufacturing Inc., or NUMMI, was a joint venture with General Motors Co. Toyota closed its doors in April after GM pulled out of the venture under bankruptcy protection last year.
UAW President Bob King pledged to step up efforts to organize nonunion workers at Toyota factories and those run by other foreign automakers in the U.S. King, who was elected to head the union this week, used his acceptance speech on Thursday to accuse Toyota of shifting jobs to a location where it can pay lower, nonunion wages. He also said the move was designed to scare workers at Toyota's other U.S. factories
Laugh of the day! I saw the new UAW head on MSNBC Ed Show complaining about this. At least it's in the USA. maybe Obama/Holder can launch a lawsuit stopping the plant move :)