REPORT: NUMMI workers demonstrate over plant's potential closing
Toyota has never closed a U.S. assembly plant, but the suddenly struggling Japanese automaker has said that it would shudder the NUMMI factory in California, the only auto plant in the state, by next March. The upcoming closure isn't a big surprise since General Motors was allowed to bow out of its half of the joint venture project with Toyota during bankruptcy, giving Toyota full responsibility for the California plant. And since the Pontiac Vibe is no longer being made at the facility, capacity has dropped to a reported 60%, making the facility unprofitable at a time when Toyota is losing money.
The closure of the plant means, of course, that its 5,300 employees will soon be without a job. To protest the closure of NUMMI, an estimated 1,000 workers turned out to demonstrate in front of the facility last week. The union-organized workers are in a tough position, too, since their UAW contract expired last week. The contract was indefinitely extended, but either party can cancel it with five days notice. And with unemployment at 11% in California, finding a new job will be no easy task.
[Source: The Detroit Bureau | Image: Justin Sullivan/Getty]
Reader Comments (Page 1 of 3)
Avinash machado 10:37AM (8/24/2009)
Toyota must be glad that their other plants in America are not unionized.
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Imag 11:04AM (8/24/2009)
The interesting thing is that this is the first time (people, feel free to correct me if I'm wrong) that Toyota has ever laid off their workers.
They have a policy of never laying off for lack of work people who are doing their jobs well because they want employees to contribute to efficiency improvements (they don't want people to feel like they might "improve" themselves out of a job). It's something that has always impressed me about the "Toyota Way".
Anyway, it doesn't surprise me that they'll get out of NUMMI, but I think it would take a serious disaster before they'd do the same at any of their other plants. It takes them a long time to select and train workers to think Toyota, and they don't give them up easily. I think you're right, that they let NUMMI go because it's union, and they'd prefer to have employment on their own terms (which are in some ways better than union).
nrb 11:41AM (8/24/2009)
Imag, I believe Toyota claims not to lay off workers. I suspect they're playing games on the books to make it look that way. Without unions to call them to task, they get away with it.
Also, it's easy to not lay off workers, when your market share is continually growing. Now that Toyota is in this position, it's no surprise that they're going to lay off people, just like any other company would.
alex 11:49AM (8/24/2009)
one of the reasons toyota never lays off workers is that they rely heavily on "temporary workers". These people can be terminated left and right but it doesn't count as a layoff.
john 9:04PM (8/24/2009)
Just close it Toyoda. Those union guys are lazy as fricks and they demand full coverage insurance and get pays higher than average workers. Just closed it.
tankd0g 11:26PM (8/24/2009)
You have to wonder if Toyota would find places for these workers if they were not unionized.
meggo 1:47PM (8/25/2009)
They've never laid off a full time employee. The technicallity of it is they hire temp or "contract" workers. They get trained and work like a normal full timer, but with the knowledge that you could be let go at any time. I can see Toyota doing something like offering a relocation package to another plant, and if you take it you stay employed. If you turn it down, you're willfully terminating your position or something along those lines.
John Johnson 10:38AM (8/24/2009)
Tell 'em to get back to work or fire them. They're unskilled laborers, which are a dime a dozen.
Unions are dumb. It's so time to get rid of them. They were mainly around to ensure fair work conditions. Everyone's out for themselves - when a bunch of people out for themselves get together, this sort of stuff happens.
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jpm100 10:40AM (8/24/2009)
I think its that they would like to fire them that's the issue.
Clay Garland 10:43AM (8/24/2009)
And explain to me why a company shouldn't be able to fire 100% of its workforce if it deems it necessary?
John Johnson 10:47AM (8/24/2009)
To me, if an employee is getting paid and not working, that's the same as stealing.
jpm100 11:00AM (8/24/2009)
@Clay.
No one said they shouldn't.
Their contract is up. There's no where else the UAW can squeeze Toyota in retaliation. Its Toyota's ball. Ask them.
JRM 11:02AM (8/24/2009)
Unions are fine, it's the UAW and their convoluted working rules that are a mess. Personally, I'd lay blame at all those lawyers that write contracts with hundreds and hundreds of stipulations and loopholes and clauses that makes unionized car manufacturing so inefficient.
once loved cars 11:36AM (8/24/2009)
They're demonstrating, they are not striking.
alex 11:48AM (8/24/2009)
Why don't you numbskulls understand that this is not a strike! They didn't walk off the assembly line. They aren't trying to prevent production to send the company a message. In their own time they are demonstrating against the plant closing. Not just to Toyota, but to their politicians who could craft a deal (maybe with tax credits) to keep the plant open.
What is so horrible about people verbalizing that they would like to have a job?
notYou 1:40PM (8/24/2009)
@alex: "What is so horrible about people verbalizing that they would like to have a job?"
Ok, I'll bite. To me there's something unseamly about workers taking their issue to the street with signs. They've moved from communicating their position to management to communicating it to the public. That is like having an issue with your wife and pleading your case to the neighborhood; a stand-up person who has a legitimate issue to resolve takes it up with the other side, not the community.
There was a time when unions needed to bring public awareness to their cause because there were few to no legal protections for workers. Now that we're a century beyond that, I see those who till rely on outside, non-relevant parties' pressure to win their issue as smacking of manipulation at best and extortion at worst.
daleam 6:10PM (8/24/2009)
Where oh where in the above posting does it say that these people are on the clock? They want to work. That's why they are protesting.
Dude 10:41AM (8/24/2009)
If I were Toyota, I'd get out of that plant as fast as possible.
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epwolfram 3:33PM (8/24/2009)
Agreed. They are lucky they can pass this off as economic downturn issue. It's smart to drop the plant now. The way toyota can get away with avoiding the UAW is the threat to close any plant that unionizes. If they allow NUMMI to exist, they forfeit that and expose themselves to possible multi-plant strikes.
It's the smart thing to do and anyone who works for a Toyota plant (or in a town supported by one) should support it. National Unions DO NOT CARE ABOUT WORKERS. THEY DO NOT CARE IF YOUR EMPLOYER GOES BROKE AND HAS TO CLOSE SHOP. They do not care about the vitality of American Industry.
Eliminate large unions that dictate hiring/firing and plant management policis and watch American industry FLOURISH and wages INCREASE due to better talent and more competition!
Clay Garland 10:42AM (8/24/2009)
Aaaaannnnnddd. . . here comes the union to go meddling in the affairs of the free market.
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