I'm paraphrasing, of course, but it's hard to believe that anyone believes that the United Auto Workers (UAW) is on the cusp of organizing Toyota's Lexington, Kentucky factory. Least of all UAW boss Big Ron Gettelfinger. Or The Detroit Free Press. And yet the paper reports Gettelfinger's comments without any hint that the man is full of you-know-what. "'We don't have the people to cover all the calls we get,' Gettelfinger said of activity among UAW organizers based here [Lexington, KY]." Nah, C'mon. Really? "'It is amazing the number of workers who want to join the union,' he said in an interview… 'They may be having activity you don't know about.'" And… they may not. In fact, the only credible– the only interesting part of this story are the comments underneath. "All a worker at the Toyota plants would have to look at is how 'successful' the UAW represented plants are," opines commentator gonefromthemess. "They are already making similar wages and benefits, they build a much more reliable product and they are poised to become the largest selling auto company. And besides, who in those plants wants to pay extortion money to UAW "reps" to get them what they already have? Good luck Get. It ain't happening." Thank Al Gore DARPA God for the Internet.
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If the UAW successfully unionise Kentucky, then Toyota will shut Kentucky down. Of course, Toyota won’t do it instantly, that’ll be suicidal. Instead, it’ll be by salami tactics*:
Step 1: Toyota will say that they are going to outsource some car production to the Subaru plant in Indiana, to “help Kentucky out”.
Step 2: A report will “leak” about how parts/labour/logistics/quality near another Toyota are much better than where Kentucky is.
Step 3: Toyota will announce a cost cutting plan in the United States to “maintain profitability”.
Step 4: Kentucky will be given a public ultimatum to cut costs knowing full well that is code for “get rid of the UAW”.
Step 5: If step 4 hasn’t worked, Toyota will “regrettably” shut Kentucky down and move production elsewhere in North America. The press release will also mention how employees at Kentucky will be offered the chance to move to one of these plants. What won’t be mentioned is what will happen if the unions come knocking at their door again!
Toyota (despite what anyone thinks) has a sense of fair play.I They also aren’t out to make a quick buck. When the Canadian dollar reached parity with the US dollar, many people called for Toyota to shut the Canadian plant down, due to it now being more expensive. But a top level Toyota manager publicly stated how they will stand by the site, because in the long run, it will aid Toyota. They aren’t out to screw anyone. Naturally, they want to make a profit (they aren’t a charity!), but Toyota will sell you a good product for a good price. Likewise, they don’t treat their staff shamefully. Fair pay for flexibility to take on other jobs. Their staff seem perfectly happy. In my long trawls over other car websites, I’ve yet to hear of any Toyota workers bitching about their job.
If Kentucky decide to unionise (and personally, I don’t think they are that stupid), then Toyota need to assert their authority over their plant, before it spins out of control.
* = slice by slice!
I don’t think the UAW will win a vote, but I seriously doubt that even if they did that Toyota would shut down the plant, the UAw makes Tacomas and Corrolas in Fremont under NUMMI. If they can make money on Corollas they can make money on Camrys.
I disagree, Mr Sherman Lin. Toyota tolerate the UAW at NUMMI because it’s a joint venture with GM.
Toyota will want to retain (or SHOULD retain) an iron grip on its own branded plants. If one unionises, what’s to stop the rest unionising? Then, Toyota will be in trouble….
Interesting article and comments.
http://www.courierpress.com/news/2007/apr/25/toyota-to-cut-temps-main-work-force-is-not/
KatiePuckrik “Toyota (despite what anyone thinks) has a sense of fair play”
I agree Katie but that is precisely why Toyota will not do what you have outlined. That is akin to someone outlining a plan to prevent African Americans from moving into their neighborhood disguised under another premise. It is the exact opposite of fair play.
Toyota has plenty of legitimate tools which they will I am sure fully utilize to win a no vote for unionization, but I am sure that in the unlikely event the UAW were to prevail they would not do the illegal steps you have outlined.
What prevents the unionization is simple, treat your workers right and pay them what they consider a fair wage. Toyota does that.
Sherman Lin,
Everything I outlined isn’t illegal. They’re perfectly legitimate steps. As for the pretext as to WHY they’re taking those steps, that’s another issue; a issue which doesn’t have to be disclosed.
I suppose a better way of putting it would be, if the UAW unionise Kentucky (which I don’t think they will, just iterate that point), it’ll be interesting to see what Toyota do….
And I agree about Toyota treating their staff well. No-one could disagree about that. But if the UAW promise the staff more (doesn’t matter whether they can deliver it or not!) then greed might be the factor here. How many times on TTAC do we talk about how greed was the downfall of the UAW, just greed was the downfall of Detroit?
Never underestimate the power of human failings…..
God I talk some rubbish! lol
So, Katie, you could say Toyota and it’s workers are just corky, eh?
In Ontario, there is no lack of people clamoring to get into Toyota’s new Woodstock factory. Personally, if I lived near there, I’d seriously consider getting a job there, since there aren’t any unions. I think the best places to work, in my experiences, are usually places without unions, where the employers realize the need to treat their employees right to get the most production out of them. Indeed, my employer at the grocery store I work at gives the best workers raises and promotions quicker than the union allows, and also cares more about his employees than the union does. As far as I can see, our union is simply taking $25 a month off my paycheck and giving back sweet FA. Oh, and the union protects the mediocre workers. The best ones don’t need the union, and the worst ones, well, they just drag the business down, making it necessary for the best workers (like me) to work much harder.
Toyota has it right – may it remain non-unionized for a long time yet.
Katie it may not be illegal for me that when I show a rental unit to an african american that I show them the empty units that have not yet been rehabiliated and with the worst view, but when I show a white person a rental unit I show them the fully restored new unit with the good view.
There are ways for people to skirt and go around laws which is what you have outlined legally but you know and I know that what you have described is basiaclly saying that if the UAW organizes a plant it gets shut down which is illegal just as it is illegal for me to rent to whites only.
I once had a top union person tell me this and I believe it. A company get the union they deserve. If they treat their workers right they generally don’t have a union. If they don’t they get one. For those that have unions if they truly try to resolve legitimate complaints they get cooporative Japanese style unions, if they try to screw everyone they get militant hard line unionss.
Finally GM makes cars that are not UAW produced and they are still crappy while Toyota makes UAW produced cars that are good so I ask is it really the UAW that is the problem?
Now, lemme see what a Toyota employee could possibly think:
“So, the economy around me tanks, my Big 3 brethren are losing their jobs and accepting payouts thanks to their Union. Their companies are facing bankruptcy, so, no more work in the future for them. And they’re facing foreclosure. On the otherhand, I have a decent job with fair wages and benefits. My company has just moved up to be the biggest car seller in the world, so at least, for the next decade, my job would be secured.
But, but, the UAW people can’t be lying to me, can they. There’s really nothing in it for them. (It’s not like they’re a leech abandoning a corpse and in seach of another warm body.) Thy promised me they’ll get me more pay, more benefits, and that they’ll fight my emplyer for me. They won’t lie to me.
So…where do I sign?”
Mr Sherman Lin,
Don’t get me wrong, I don’t blame the UAW for building shoddy cars. It’s not their fault and I never suggested it was.
I even support them when they go on strike (for about 5 minutes) to fight for their jobs.
What I DO have a problem with it going into a situation, which doesn’t need them, playing on peoples greed/fears/insert human failing here and getting their feet under the table when everything was going well. If the Toyota staff were being treated like dirt, then I’d be the first to say “Unionise!”.
As for the saying “A company will get the union it deserves”, that’s hardly surprising. Ever heard the saying “A country will always get the leader it deserves…..”?
And I am not cheering on the UAW either. I drive a Toyota (Scion Xb 1st Gen). I won’t be buying a domestic except possibly a Ford anytime too soon.
The UAW is probably going to lose this fight precisely because Toyota is treating their workers right but you have to understand that unions like them or hate them will try to organize a union when asked if even by a small group. Major unions like the UAW actually have full time union organizers. Thats their job (really it is) but I wouldn’t worry about the UAW organizing Toyota anytime soon.
For reference, look at what Briggs & Stratton did to fight the union. It is very similar to what KatiePuckrik outline, only Briggs was nearly completely unionized when they decided to do it. It can be done successfully.
Voting in a union is the workplace equivalent of taking up smoking. It fulfills some kind of perceived need in the immediate term. In the long run it kills you.
And yet, people smoke. Lots of people even take up the habit as full-grown adults who should know better. So, we’ll see.
Dear Kentucky:
Stand by and continue to allow the UAW to harass Toyota.
Are you aware Toyota’s plants outside of KY?
SIA is now producing Camry’s. SIA can meet demand for Camry if needed. TMMI with less demand for Tundra and Sequoia have extra capacity. Toyota can shift the entire Tundra production to TMMT if needed. TMMM has been delayed due to slow demand for Highlander and Toyota is also re considering what line to produce at TMMM. Toyota is a master at solving problems before they happen.
Do you need me to draw a picture for you?
If Toyota can see the writing on the wall…they will avoid the union like the plague. The UAW is the single most damaging cause to the big three. Look at what those extremely greedy people are doing to GM right now.
Of course the Georgetown plant is really many plants; not just the assembly operation. But even that by itself is huge and far too big to walk away from. Of course Toyota would prefer the plant to remain union-free, but they will manage that if it happens. I did read a few days ago a comment purportedly from a Toyota mouthpiece that they would be looking to reduce wages. No surprise since the Big 3 UAW workers have taken hits, thus Toyota can lower their bar and still offer an advantage. With inflation taking off, lowering wages can happen with just smaller increases.
Anyway,
Katie:
Toyota only treats its workers “right” because it can. If the bottom line were ever threatened they’d close aforementioned and any other deficietary plants in a heartbeat. Don’t give them any special kudos, they are what they are: A corporation looking to make a buck.
OTH, if I were in KY, I’d surely be fighting unionozation exactly ’cause Toyota’s doing so well right now.
From Brazil, “Anyway, Katie: Toyota only treats its workers “right” because it can. If the bottom line were ever threatened they’d close aforementioned and any other deficietary plants in a heartbeat. Don’t give them any special kudos, they are what they are: A corporation looking to make a buck.”
How does anyone know? The only thing we have to go on is past actions, I don’t recall any pattern of Toyota systematically screwing over anyone simply because they could. Has Toyota ever unilaterally slashed wages or closed plants in the past?
Nummi is an interesting bargaining chip. Toyota has no need of a joint-venture relationship with GM today, and given the complete lack of a manufacturing infrastructure in the SF Bay Area any more combined with high taxes and a high cost of living there could be plenty of reasons to wind down Nummi. GM has NEVER done it’s part of marketing 50% of the production and right now only has the Vibe in the plant. Toyota builds Corollas and Tacomas there. Both vehicles are also produced elsewhere while the Vibe is a Nummi only product.
Toyota could send a loud message to the UAW by scalling back Nummi production if any threat of other plants being organized got serious.
But, it isn’t going to come to that, and if it did, I bet that Nummi workers would vote to kick the UAW out. Nummi doesn’t conform to any of the rest of the UAW pattern bargaining and is rather an odd duck.
Nummi’s best upside right now is that the Corolla is hot and with the dollar weak it is cheaper to build them in almost any US factory than it would be in Japan or Canada.