NUMMI RIP? Toyota Considers Dumping UAW Plant

"We're making awesome money, and #1, but hey, let's close up some shops so we don't have to pay good wages." Sounds fair to me.

Taking a page from GM, eh?

A *greedy* UAW is a disaster for any company :)

-GV

Twenty years ago I was working at an Aerospace/Defense contractor making $16 an hour, tuition reimbursement, full health coverage, etc etc.

In 1991 it came up for Union negotiations. I read the Wall Street Journal every day and I could see the handwriting on the wall.

Most members wanted a raise. They got their raise.

Two years later I was out the door. No $16.75 an hour, no full health benefits, no tuition reimbursement, etc etc.

Would *I* have given up a couple $$ an hour to KEEP that Gravy Train job?! You Betcha!!! $12 with full health benefits, tuition reimbursement, etc etc is a far cry better than NO $$/hr, NO tuitiont reimbursement, NO full health coverage, NO etc etc.

Manufacturing is on the way OUT in this country. Anyone that hangs on to the myth that this country can't be outdone is living in a Fool's Paradise.

Sadly you are right. Our days of manufacturing ANYTHING are all but gone in this country. Not to be off topic, but I would site my own industry, decorative lighting fixtures (such as you use in your own home). One of the manufacturer's our company represent is #1 in the US. Interestingly, not ONE SINGLE item in our selection of over 3,000 fixtures is made in the US... it's virtually all made in China, as are 99% of all lighting fixtures sold in the US regardless of brand. When I became a rep some 20 years ago, it was less than 50%, but competitive pressure (from those already using China) along with the constant need to feed the bottom line, we had no choice but to stop all manufacturing in the US and Mexico and move off shore.

Fortunately with the auto industry there TRULY IS hope. Car's CAN be produced in this country at a profit. If you doubt it look at Toyota or Mercedes or Hyundai's bottom line, and they build many of their vehicles in this country. Look at the Honda. WOW... and most of their product is produced on our soil.

But we all know the difference is the big three's overhead costs for retirement benefits and Union obligations versus the new auto mfg which have little of these and pay a good but less wage.

One of the arguments I often see in this group is that the hourly wage of the current big 3 is killing their profitability. Actually I disagree. What's killing the big 3 is the cost of RETIREMENT benefits, and NONE of the newer foreign manufacturers are yet faced (and never will be based on their method of calculating retirement benefits) with these incredible expenses.

I don't know if the article I read was correct, and I can't recall the source right now although I think it was USA Today, but it stated that GM has MORE cost in retirement benefits in any vehicle it builds than it does in cost of steel.

That is truly amazing, and obviously indicated the extreme need for things to CHANGE if these companies are to survive.

Obviously GM can't stop funding it's retired workers, but it only stands to reason that a radical change in future benefit packages must be made if they are to survive.

Willy

Willy