Toyota to restart US auto plant, draws UAW ire

Yahoo News ^ | June 18, 2010 | Dan Strumpf and Tom Krisher

[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.

[TSgt]

How dare Toyota employ Americans?

The horror!

[Dead Eye Lane]

Wasn’t the CA plant co-owned and operated by GM too?

[Former Proud Canadian]

You must have double posted because the UAW has two auto companies.

[Travis T. OJustice]

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.

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.

[Texas resident]

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?

[csvset]

Just like any other business, you close the less profitable locations.

[woodbutcher1963]

I am curious. What is starting pay for a autoworker in Mississippi vs. California ?

[1rudeboy]

[meyer]

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.

[Texas resident]

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.

[SJSAMPLE]

Yes.
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.

[Ouderkirk]

A more likely key difference was the plant was in California - with its taxes and regulations and high cost of doing business - rather than in addition to the fact that it was unionized.

Fixed it

[Constitution Day]

Go Toyota!!

[Squantos]

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 !

[Pearls Before Swine]

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.

And that is bad because...?

[TMA62]

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.

[Leisler]

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.

[70th Division]

A close high school friend of my son's works for Honda in Arkansas. He interview in several places before taking this job. He said wages are competitive with union shops. Honda is non union. So it IS all about the dues.

[Leisler]

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.

[green iguana]

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.