UAW Taking 3% of NUMMI Workers Severance Package
Jason Lancaster | Feb 03, 2010 | Comments 20
We’ve been following the closure of the NUMMI auto plant – a joint venture between GM and Toyota – for a few weeks, now, and the stories we’re hearing from NUMMI workers about the UAW are incredible. Stranger than fiction incredible.
First, there’s the fact that more than 80% of NUMMI’s workers signed a petition critical of the UAW.
Next, there’s a video showing a UAW leader dropping F-bombs on NUMMI workers at a union meeting.
Now, we’re being told that the UAW is planning on taking 3% of whatever severance package NUMMI’s workers receive. What, exactly, is the justification for taking a percentage of a worker’s last-ever paycheck?
Technically, when the workers voted in the UAW back in 1980-whatever, they agreed to pay the union for representation. In that strict, legal sense, the workers owe the UAW a percentage of any compensation they receive.
However, NUMMI’s workers don’t believe they’re getting representation. Instead of working hard to come up with a severance package for NUMMI’s workers, the UAW is using NUMMI’s closure to try and make a political statement against Toyota. The UAW is supposed to be committed to it’s members, but many NUMMI employees believe the UAW has their own interests in mind.
NUMMI management has told workers:
“as time passes, it becomes more difficult to justify a significant payment” to retain plant workers until the last car rolls off the line
Frankly, this makes perfect sense. The whole point of offering NUMMI employees a generous severance is to ensure their co-operation during the plant’s closure. As closure draws nearer, there’s less incentive to pay for performance. So why is the UAW dragging their feet?
The UAW Owns 17.5% of GM
Many NUMMI workers are arguing that, because the UAW owns part of GM, they’re unwilling to pursue GM for money. UAW Local 2244 President Sergio Santos admits as much to the San Francisco Chronicle, but he says that it’s due to GM’s bankruptcy. Yet if the UAW is being so logical when choosing not to pursue GM, why then are they trying to publicly embarrass Toyota?
- Santos is right – the UAW won’t get a penny from the “old” GM that is embroiled in bankruptcy. Still, applying public pressure to GM would make workers feel better and might generate some political sympathy…and it’s possible that the new GM would send over some cash as a result.
- The UAW wants to hurt Toyota. The UAW is at odds with Toyota because, historically, Toyota’s efficient and low-cost US auto plants have been used to make the UAW look bad. This is a sad example of petty, political grievances impacting negotiations.
- The UAW wants to help GM sell cars. The future of the UAW is tied to GM – if GM succeeds, the UAW stays relevant. If GM continues to struggle, the UAW risks fading out of existence.
So there you have it – the UAW wants to hurt Toyota because it helps the union’s bottom line. Unfortunately, NUMMI’s workers will suffer as a result. To add insult to injury, NUMMI workers will likely have to pay for the privilege of being screwed over by the union that’s supposed to represent them.
Truth is stranger than fiction, isn’t it?
Filed Under: Auto News
UAW’s as far as I can comment on with GM experience is a joke the past 10-15 years. They do NOT have the best interests and do NOT fight for worker’s rights anymore. The UAW is partially responsible for GM’s demise along with mgmt. not changing their spendthrift ways and make changes that needed to be made 10 years ago. Sorry Nummi workers, you are getting screwed again.
mk – Hard to believe that anyone would try and take money out of a worker’s very last paycheck for “representation.” Unless the UAW is going to help all these people find new jobs, that’s just a waste of money. It’s ridiculous to pay union dues when you’re never going to need the union again…
Grew up in the Bay Area (’55 – ’80’s), new several people who worked at then GM’s Freemont plant (UAW). My best friends father was head of personel for Bay area ops. From what I know, you wouldn’t want to risk owning a GM product produced at that plant then. Late in the ’80’s Nummi started, some Mech Eng students I knew took internships there. Innovation was up and some things were different. Unfortuantly from what I have read here and other places the union’s presence continued at the plant. Guess what, it closed. The End.
My husband works for NUMMI and I am 8 months pregnant. The baby is due on April 4th, but my doc will induce me on March 29th just to make sure my delivery is covered. Yesterday my husband was told that if he takes any type of FMLA his “retention” will be deducted $175 for every day that he takes FMLA. If he calls in sick for any reason he will be deduted. And if he takes vacation day to cover his FMLA day his “retention” will be deduted $100. The sad thing is these employees have not signed anything and they are being told these types of reductions are going to be dated all the way back to OCT. My husband has taken 3 days (while I was in the hospital) and now he is going to be hit by this deduction without being notified. The UAW has put my family and many others in a tight spot, if there is not retention package we can loose everything. My husband has had months to go look for a job (and he has) but the benefits for me and the baby have kept him at NUMMI. 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. If anyone knows of a great lawyer that is willing to go after the UAW please send them my way. These NUMMI employees should be receiving the same retention as the UAW teamsters that were laid off in Detroit, they all pay the same union fees
Marko – Well said.
Krista – Good luck to you and your family. I think a lot of workers feel the same way – they’re not looking for a big payday, they’re just looking for some sort of definitive answer. Let’s hope the UAW get this negotiation done sooner rather than later…and let’s hope they don’t try and take any part of that last check.
Krista – congratulations on the baby. Very sorry to hear what you and your husband are facing at the moment. Hopefully a more reasonable solution will come about soon.
Come on UAW enough of this screwing around. Let the employees know what EXACTLY has been laid out on the table and let them take a vote. I am 99% sure what the out come would be and then they can finish their time at Nummi with a little less stress. And Shame, Shame, Shame on you for wanting 3% of the last paycheck. I would rather see it go to Haiti than in your pockets.
molly – I’m with you.
The not knowing anything causes stress. Does anyone know if they are offering early retirement benefits? What are the numbers? Thanks.
Krista, I hope that you will receive some of the $250 million that Toyota is providing NUMMI employees. If GM & the UAW are so great, they should pony up another $250 million to match since they owned 50% of that plant. Oh, wait…..that may take a while for Congressional hearings to approve the payment because 60% or so of GM is owned by the US government. The last thing Toyota wanted to do was close that plant. It’s in the company’s history/culture all the way back to the time of making automatic weaving looms that they do not want to lay people off (The Toyota Way by Jeff Liker). I wish GM had such a history.
It is pretty sad to say but I’m not holding my breath. Yes Toyota handed over $250M for the EMPLOYEES (and we are extreamly greatful), but it’s still up to the Union on how they are going to distribute that money. If I were a betting type of person I would place everything I have on the fact that the UAW is going to take a pretty large chunk out of the $250M for their own fees.
Ultimatatly, I wish these UAW teamsters were getting treated the same way as the UAW teamsters in Detroit. The employees of GM in Detroit walked out with benefits and making close to what they were making while they were working. Yet as you stated (Jeff) GM washed their hands with the NUMMI employees and have not lost a wink of sleep.
I’m going to have a talk with my doctor tomorrow and I’m going to ask him to induce me a little earlier because I need to make sure the delivery and after care for this baby is covered for a least a week. It is really sad that these are the type of sutitations that need to take place because it’s 3 weeks before closing the doors and we still do not have an answer about the employees retention and benefits.
God Bless
Krista – God bless to you – here’s to a happy, healthy baby!
I’m currently on l.o.a for an injury I received on the job I have yet to get any information from my union brothers ,even though when they were wasting MY dues picketing outside of dealerships I was swamped with letters from them everyday .I wish someone truly do know a lawyer that can help us get back our money we spent for union dues. Feel free to contact me if needed.
Kevin – I hear ya – good luck.
My understanding is that the Union is taking a percentage of each person’s money not even a flat amount. That means that the more the worker has coming to him or her, the more the union is going to get out of them. That is criminal. Sounds like the union, Toyota and the government made a little agreement because in addition to the union percentage, the workers are being taxed 41% on their “severence”, which is actually being catagorized as a “bonus” so the workers are put in a higher tax bracket and the government can get their cut. And to top it off, the government is supposed to get their share right away instead of waiting for the actual tax season. That way they get to use the money this year instead of allowing the workers to invest it until tax time. What a crock! Anyone hear differently I’d like to know.
Dee – It just keeps getting worse…41% tax rate? That’s awful. The UAW has no right to this money IMHO, they shouldn’t take a penny. They failed you guys, and you don’t owe them anything for that.
Wow… 41%… That’s ridiculous…. Get cursed out at a meeting and lose 41% of what you get.
Hi! My name is Jeanne Davenport. My husband worked for Nummi from 1985-1999 Mon-Sat and most holidays. He died in 2001 from cancer. I recieved a packet from Nummi November 2010 stating I would receive his retirement March 2011. I called the Nummi Benefits dept in March 2011 and spoke to Greg. He stated that the UAW local 2244 has put my husbands reirement in arbitration for at least 6 months because they do not want Nummi to shut down… (even though Tesla is already up in running) They also stopped paying in to his retirement in 2003. Law state he does not get his retirement until he is 65. That communicates that they are pretending he is still alive… yet they stop paying in to it and are enjoying collecting interest on it… and what about HIS severance pay… if he is dead(which he is) then it would be illogical to ask for that… but if they are keeping him in the here and now by holding his monies for ransom(which they are) then he is entitled to everything. I think it is bad enough that he killed himself working for an organization and unions that leaves widows on the brink of homelessness but what makes everything worse is that UAW will not even return my calls. I just want to know the truth. We all know 6 months arbitration means 60 years until all the monies are pissed away. Anyways… turned this over to channel 3.
Jeanne – That’s unbelievable. Typical UAW BS – they try to arbitrate the closure of a plant when they should be trying to work out a severance package and building a relationship with the manufacturer for the future.
Perhaps if the UAW weren’t so combative – and so callous to their members and former member’s families (people such as yourself) – they wouldn’t have so much trouble recruiting new members.
It’s a telling statistic that every year the UAW gets smaller…every year they matter just a little bit less. Sorry to hear that you’re having to fight with them – good luck. 🙂
[…] This was clear when the contract was accepted with a 90 percent majority. For its services, the UAW pocketed 3 percent of the severance payment. At the time, the UAW owned 17.5 percent of GM. Â The disputes led to union meetings as the one […]