UAW Leaders Forget GM Closed NUMMI
Jason Lancaster | Mar 01, 2010 | Comments 11
Perhaps lost in all the recall news, we’d like to touch base on the pending closure of New United Motor Manufacturing, Inc., an auto plant that was a joint venture between GM and Toyota. Started in 1984, NUMMI is the very last major auto manufacturing plant in California. While California’s anti-business regulations contributed to NUMMI’s closure, there’s no denying that General Motor’s bankruptcy was the event that started it all.
When General Motors backed out of NUMMI, Toyota followed suit. Why isn't GM getting any of the blame from the UAW?
When GM abandoned NUMMI, Toyota followed suit…as is the fashion when one business partner abandons the other. However, rather than blaming GM for decades of mis-management (or perhaps looking in the mirror at decades of outrageous labor policies), the UAW is protesting against Toyota.
These UAW orchestrated anti-Toyota protests (which some say are pure unadulterated nationalism) are interesting because 80% of NUMMI’s workers feel that protesting against Toyota is the wrong move. Rather than attacking Toyota with protests, workers feel that the UAW should be negotiating a severance package with Toyota…and going after GM for money too. However, the UAW feels that going after GM for their role in NUMMI’s closure is “pointless.”
NUMMI workers find this explanation infuriating, and for good reason: the UAW is a shareholder in the “new” GM. Attacking GM doesn’t make a lot of business sense for the union. Instead, the UAW is attacking GM’s competitor Toyota, hoping that some nationalist fervor can boost GM’s stock price and help the UAW’s bottom line.
Worker anger and UAW ineptitude were on full display at a UAW meeting for NUMMI workers last month. Not only did the UAW’s chief negotiator with Toyota yell “shut up you mother****ers” at a room full of workers, but he later accused the Toyota of somehow “planting” people in the crowd in order to undermine the union. All the while, negotiations for a severance package dragged on.
One worker’s wife commented:
The UAW has put my family and many others in a tight spot, if there is not retention package we can lose everything…We are not one of these people who are demanding thousands and thousands of dollars in severance, we just want the union to get off their asses and provide the employees something to sign so we know how to prepare for the next few months
We’re still not certain if NUMMI’s workers have a severance package, but whatever that final severance is, the UAW is likely to take a percentage as part of their contract to represent NUMMI. Imagine being laid off, yet having to pay the UAW membership dues from your very last paycheck.
As workers prepare for unemployment and demand details of a severance package, UAW leaders rail at Toyota. Bob King, who is soon to be the head of the UAW, says “[Toyota has made] a number of bad decisions, and we’re saying that the worst one is to close [NUMMI].” (link)
Obviously, Bob doesn’t get it. GM completely abandoned NUMMI, while Toyota stuck around, gave workers months of notice, and has offered to pay workers a severance. Toyota isn’t perfect of course, and no one wants to see a plant closed, but where does King get off blaming this whole thing on Toyota?
Filed Under: Auto News
HA HA HA UAW. Idiots. The working people are going to get enough and all bail out of the UAW leaving 2 guys and a typewriter in a shack as the last thread of the UAW.
It seems that with all that’s happening to Toyota, Bob there wants part of the action that is going on there. If I was at that union the union wouldn’t get doodly squat from my paycheck. Be lucky they don’t get sued from the workers to pay compensation for the time they wasted instead of getting severance packages done. When I got laid off I was lucky and had 10 weeks of vacation still owed to me and they gave me 13 weeks pay. That had nothing to do with the union since I was already black balled. I got a whole 2 weeks of compensation then it was straight unemployment pay for 1 month.
Jason, I just have a couple questions. How many GM vehicles were being produced at that facility? Wasn’t it only the Pontiac Vibe, aka the Matrix. So when Pontiac was a has been and did exist any more was there any other GM products produced there? What happened with the recall negotiation? Why isn’t there a post about that to explain it better.
Will – Towards the end almost no GM vehicles. GM’s last major product from NUMMI was the Geo/Chevy Prizm. After that, it was just the Vibe. Not sure what you’re referencing in terms of ‘recall negotiation’ – can you help me out?
##
Here’s some more background: NUMMI was founded as a stand-alone joint venture, owned in equal parts by Toyota and GM. When GM filed bankruptcy, it was determined by the GM management team and the Obama administration that NUMMI would be part of the “old” GM. As a result, GM’s share in NUMMI has to be liquidated.
##
Toyota’s choices were to either buy GM’s share – and take full responsibility for the plant and all the workers – or sell their share on the open market alongside GM’s. Toyota determined that selling was their best option.
##
Toyota’s decision likely had to do with the higher production costs at NUMMI – rumored to be $500-$1000 more per car than other Toyota plants. WHY the costs at NUMMI are higher is subject to debate. Some believe the UAW is to blame, others say the age of the plant is the problem (I say both). In any case, NUMMI is closing…and the UAW is hammering away at Toyota while almost completely ignoring GM’s role in this issue.
UAW, plant closures, government intervention (GM), those poor folks that work(worked) at NUMMI are in the middle of a huge mess. The UAW is hammering at Toyota because they know they’ll get nothing from GM. I’m not a big fan of unions but they really have only a couple choices on this one. How they represent their members is another story. The UAW needs to listen to the majority view of those NUMMI folks. All I can say is good luck to the folks that have worked for the NUMMI. It doesn’t sound like the union, GM or Toyota is going to help them out much if this thing turns into a big tug of war!
Rich – I think you hit the nail on the head. 80% of NUMMI workers don’t support the UAW’s actions. That means the UAW isn’t doing their job…or at least that’s how it looks to me.
Are there more than one Jason’s that are administrators? Because the following posts don’t make any sense if there is only one, unless he has amnesia. You see on March 1st you said didn’t know of the “recall negotiation” but on the 27 of Feb you referenced it by saying and I quote “they tried to “negotiate” out of the recall last year”.
–
Jason Said in March 1st, 2010 @7:12 pm
Will – Towards the end almost no GM vehicles. GM’s last major product from NUMMI was the Geo/Chevy Prizm. After that, it was just the Vibe. Not sure what you’re referencing in terms of ‘recall negotiation’ – can you help me out?
–
2010 Toyota Tundra VVTi Gear Assembly TSB Explained
Jason Said in February 27th, 2010 @2:20 pm
To be fair, Toyota deserves a lot of blame in this mess for the poor way they’ve handled this issue, the fact they tried to “negotiate” out of the recall last year, and the design issues with the sticky pedals and the floor mats.
–
The workers could have at any time as a majority voted out the UAW. So now they feel so upset about them (union) or is it the fact that Toyota is taking their jobs to Canada and Texas. Why has no one asked this question? Why is it that GM closed NUMMI when they only produced one vehicle there that was the PONTIAC Vibe. When did Pontiac stop producing the Vibe because they went out of business? Was it middle of 08 or early 09?
–
So why doesn’t someone explain the recall negotiation. You know that 100 million dollar savings.
Greg simple answer. Who asked who to do this joint venture? GM deserves the same amount of blame. Greg isn’t it a good possibility those workers trusted their union reps to what is right for them? Jason already explained the reason of moving out of NUMMI. No need to know about Texas and Canada. Were you that worried about Mexico and Canada when they took GM/Ford/Dodge jobs? Pontiac was closed by GM who owns the name. They produced the Vibe until the last one came out of NUMMI. You can still see pontiac cars for sale on GM lots. Some still have the Name Pontiac on the building. Now Greg what part of this topic does it have to do with Toyota negotiating to get out of a recall? It has no bearing on this topic. This negotiation goes with most recalls on every maker out there. Why is Toyota’s so important? Where was this fire for Firestone/Ford, and others? As far as the negotiations that goes on with these makers with NHTSA is up to NHTSA to put out. If Toyota don’t put out the info then we don’t need to know. This happens with most corps here in America and the public has no idea and does the public have the right to know? NO!
Ok, Pontiac’s are still for sale. Pontiac still has it logo’s on buildings. So? Are they still producing cars? Does Pontiac still exist as a manufacture? The whole negotiating proved the credibility of some posts. As for jobs going to Canada and Texas. It shows the point that this maybe spun in other directions and its the blame game and that the UAW (that includes all employees of NUMMI) may have a valid reason to be upset. Your taking there livelihood away.
Am I greg? Let’s see who outsources to the US to build their vehicles? O h yes it’s Toyota. Where does your big 3 outsource? yes Mexico and Canada. So try again about the livelihood being taken away.
Greg – I honestly didn’t connect Will’s point about the recall negotiation with Toyota’s awful negotiation of a recall last summer. I did do a post about that negotiation – and I feel like I didn’t pull any punches: https://www.tundraheadquarters.com/blog/2010/02/23/toyotas-legal-troubles-independent-testing-and-little-black-boxes/
##
Your statement that the workers at NUMMI simply could have “voted out the UAW” is pretty unrealistic. Once a union is established, it’s almost impossible to remove. This is largely because unions help to guarantee pensions, disability benefits, and sometimes even medical benefits. When workers decide to “vote out” a union, they’re choosing to throw away benefits…which is why it almost never happens.
##
Defending the actions of the UAW won’t get you any points with 80% of NUMMI workers. I know you’ll say that I’m making it up, but I’ve got a couple of good sources at NUMMI. https://www.tundraheadquarters.com/blog/2010/01/25/nummi-workers-upset-uaw/