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NUMMI UAW Local Votes to Take Toyota Severance

Toyota offer was contingent on a gag order that looks to prevent free speech. Union workers had little choice.

by on Mar.18, 2010

Toyota moves production to a non-union plant even though California is its largest U.S. market.

About 4500 members of UAW Local 2244 voted today to accept a $281-million severance pay package offered by Toyota, which is closing New United Motor Manufacturing Inc. on April 1. Ratification was approved by 90%.

It is the only auto assembly plant in Toyota’s largest market in the United States.  (Click Here for Toyota Sweetens NUMMI Closure Severance)

The joint venture between Toyota and General Motors was making  the Toyota Corolla sedan and Tacoma compact pickup truck. Production of the Pontiac Vibe ceased there last August.

NUMMI repeatedly won J.D. Power  awards for quality.

Production is being moved to a non-union plant in Texas. Tens of thousands of jobs at the plant and its suppliers will be eliminated. The severance package only applies to union members.

Part of the Toyota offer stipulated a gag order.

“I believe (it) violates our First Amendment rights under the U.S. Constitution, and our rights to Freedom of Association under the Labor Rights Conventions of the United Nations’ International Labor Organization (ILO),” says local 2244 President Sergio Santos.   (more…)

Toyota Sweetens NUMMI Closure Severance Deal

UAW to vote on severance package as Toyota closes California’s only auto final assembly plant next month in its largest market.

by on Mar.16, 2010

NUMMI located in Fremont, California, is the only vehicle assembly plant in the state.

The United Auto Workers union says it has reached a tentative agreement with Toyota to shut down California’s only final assembly auto plant, New United Motor Manufacturing, Incorporated (NUMMI). About 4,600 workers will be affected when the plant shuts on April 1.

Details of the severance packages were not released, pending ratification by union members of Local 2244, but people close to situation say payments of between $20,000 and $70,000 per worker are offered, depending on length of service. The time and date for a ratification vote has not been determined at this time, but the vote will probably take place later this week.

Earlier this month, Toyota Motor North America, Inc. (TMA) said that Toyota has committed $250 million to its contracted manufacturer New United Motor Manufacturing, Inc. (NUMMI) to fund transition support for NUMMI’s salaried and hourly team members, who assemble Toyota Corolla sedan and Toyota Tacoma pickup models. It is the only unionized Toyota plant in the United States.

NUMMI started 25 years ago as a joint venture between Toyota and General Motors. At the time of the GM bankruptcy last summer, about 10% of NUMMI’s production was for GM vehicles.