• Apr 13, 2010
This didn't take long. Hot on the heels of NUMMI shutting its doors for good, reports are emerging that the plant's former workers aren't satisfied with their severance packages. Originally, employees were slated to see around $54,000 on average, depending on seniority. The newest workers were headed home with $21,000 in their pocket, while those who had put in the most years were walking away with closer to $68,000.

But that was before the last round of negotiations between Toyota, General Motors and the UAW. According to new report, under the new deal, seniority no longer factors into severance compensation. As a result, former workers at the NUMMI plant will see $21,000 on average.

While fingers are pointing every which way when it comes to who's responsible for the plant closing and the cut in severance pay, most of the blame has landed squarely on GM, and Toyota has handed over around $250 million for severance packages, while Detroit hasn't offered up a dime.

[Source: Just-Auto - Sub. Req. | Image: Justin Sullivan/Getty ]


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    • 1 Second Ago
  • 30 Comments
      • 4 Years Ago
      I'd suggest you take what you can get and put the effort into finding another job. GM's so mismanaged they're lucky they're getting $20k.
      • 4 Years Ago
      Wow a lot of misinformed haters on here. First of all it was not a severance package it was a retention package. The Nummi closure was known about for months. If you knew your company was going under in a few months you would begin looking for work immediately and if an offer appeared early you would probably jump on it. Toyota didn't want their workforce leaving before the plant closure so they offered a payout for those who stayed until the end. So there is an entitlement mentality going on here, a company that feels it is entitled to offer its workers something to get the most work out of them and then renege on its promise. You would have to be an illiterate idiot to continue to spout the nonsense that it was anything but a retention incentive. Second of all as has been discussed on here and in other places, the union was not the reason this plant was closed. Each of you spouting this as if it were fact are just idiots. The high cost of doing business in California coupled with the fact that Toyota's supplier and distribution network is located in the southern and midwestern US had a lot more to do with it then the union.
        • 4 Years Ago
        Misinformed is correct. The post says "severence package" over and over and doesn't mention anything about a retention package. So, why jump on the comments when it's the post that is incorrect according to your sources.
      • 4 Years Ago
      ...Really......? When I got laid off from my factory job I didnt get any severance. Granted I only built airplane parts but still. I just got a letter telling me not to commit suicide lol I would have been ecstatic to get 21,000 dollars
      • 4 Years Ago
      I agree with jtbass, all are not displeased with the package. I know some companies such as the ones that the Haters worked for didn't give the nothing, well, if you had a UNION, you might of got more than a 2 weeks pay and a handshake. I worked at the plant for 25 years and I'm still young enough to work, I started right out of high school working there. So, I'm happy with the 68K their giving me, THANK YOU TOYOTA, even though the US GOVERMENT WILL TAKE ALMOST 30K from me. SO, ALL YOU HATERS OUT THERE> BUY UNION and QUIT HATING ON MY WAY TO VEGAS
      • 4 Years Ago
      "While fingers are pointing every which way when it comes to who's responsible for the plant closing and the cut in severance pay, most of the blame has landed squarely on GM"

      Huh? It's pretty obvious the blame lands squarely on the UAW.
        • 4 Years Ago
        "Well management did contribute to that whole crappy cars thing."

        They may not be the best out there, but I wouldn't consider the Matrix, Corolla, and Tacoma alltogether crappy. And anyway, the cars are not the reason Toyota is closing NUMMI. The cars will continue to be built elsewhere (read non-union factories). The union is the reason Toyota is closing NUMMI.

        Of course blaming the UAW for the plant closure is sort of like blaming the gun for the murder. The gun is just doing what guns are made to do. The union is just doing what unions are made to do. The real blame lies with the shooter, who could have chosen to put the gun down. In the case of NUMMI, the real blame lies with the workers, who could have chosen to walk away from the union. So in the end, these whiners caused their own unemployment by refusing to de-unionize.
        • 4 Years Ago
        Well management did contribute to that whole crappy cars thing.
      • 4 Years Ago
      Nice going, GM.

      They are making 'murika look really good when the foreign company is footing the bill for our American workers.
        • 4 Years Ago
        I guess sarcasm doesn't really translate well onto the Internet. My comment was downrated into oblivion!

        Regardless, if GM promised something and didn't deliver then there is a problem. 9 months notice is a ridiculous amount of time for someone to start looking for another job.

        Ahhh UAW.
        • 4 Years Ago
        I think GM should be chipping in relative to what they got out of that plant, which was Pontiac Matrices. Toyota vehicles were the bulk of what came out of that plant, so Toyota should be doing most of the compensation.
      • 4 Years Ago
      California needs to improve its business environment.
      • 4 Years Ago
      The bay area is simply too expensive for low-skill assembly jobs.

      I'm surprised nummi made it this long.
        • 4 Years Ago
        This doesn't appear to be a cost issue. Those wages are quite reasonable for the work done. I've seen line workers make more than the reported $68K in other states, and that was 10 years ago. This is of course assuming that the workers got a lot of overtime in the year they earned $68K.

        The problem looks more to be that GM didn't need the capacity they were getting from the plant, so they pulled out. Then Toyota didn't want a UAW plant under their own name and also didn't need the capacity that badly, so they pulled out. It could have happened anywhere.
      • 4 Years Ago
      I know engineers that work 70 hours a week on salary with no-overtime who got 1/10th (that would be $2100 for non-engineers) after being laid off. What world do these workers live in?
      • 4 Years Ago
      Only $21 thousand. Oh how will they survive?!?!

      Note to former NUMMI workers:
      Welcome to the real world. Now STFU you damn crybabies.
      • 4 Years Ago
      I'm no cry baby, I will gladly take my 39K that they are giving me, I earned it and will be happy with it! you don't understand the reasons some people are pissed, a worker puts in 20years, and is receiving 48,000.
      thats sounds good right? A worker who's been there 1 year of service gets $21,000. Is that fair that a worker with one year seniorty gets nearly half a severance pay-out as someone whos been there 19 years more than him? it's human nature to say WhaTTTTT. like I said, I did 8 years of hard work, I'm not complaining at all. You just need to understand why some people are upset.
      • 4 Years Ago
      It's bad when someone tells you they will do something, then not own up to the situation. That being said a lot of companies provide $0 in severance and just point you to unemployment.
        • 4 Years Ago
        as Ronzo said they should be happy they are getting anything. 21k depending if its before or after taxes is a years pay for some people.
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