Twenty-five thousand jobs and $2.3 billion dollars. That’s what California stands to lose if Toyota follows through with its plan to shut down the New United Motor Manufacturing, Inc. (NUMMI), plant in Fremont at the end of the month, according to a study released today by a Blue Ribbon Commission. The Commission, appointed by State Treasurer Bill Lockyer, was tasked with assessing the economic, social, and environmental costs of Toyota’s planned closure of the state’s only auto assembly plant.

UC Berkeley Professor Harley Shaiken, chair of the Blue Ribbon Commission:

NUMMI is in the heart of Toyota’s most important U.S. market, NUMMI has Toyota’s most skilled and experienced workforce in the country – one that has consistently won industry acclaim for quality – and California is at the cutting edge of both technological innovation and the green future the company wants to lead. NUMMI and its highly experienced and skilled workers should be valued by Toyota as a key asset for the company as it struggles to reestablish its reputation for quality and green innovation.

The Commission’s report validates what we already know — there are no good reasons for closing NUMMI and many good ones for keeping it open.  

The report found:

§ Even during the recent downturn in auto sales, Toyota’s share of the U.S. market continued to expand. Toyota could easily operate all of its U.S. plants — including NUMMI — at full capacity and still not meet the demands of the U.S. market.

§ NUMMI’s closure would deepen the recession in areas that are already among the hardest hit. Unemployment in the state is 12.4 percent and in Fremont is nearly four points higher.

§ More than 20,000 jobs would be permanently lost according to the University of the Pacific forecast for 2010-2014. Many of these jobs are high quality, well-paying jobs.

§ States and localities will lose nearly a billion dollars of tax revenue needed to fund vital services in the ten years after the plant closes.

§ Workers and their families will suffer not only economically but physically as well, according to new research, which shows that plant closings significantly increase the incidence of heart attacks and strokes by 50-100 percent among older workers like the long-time workforce at NUMMI.

§ Californians buy more Toyotas than anywhere else, and by closing the NUMMI plant, Toyota is drastically increasing the distance that the vehicles must be transported to reach the California dealerships, which will lead to more pollution and result in greater degradation of the environment

If Toyota takes the Commission’s advice and uses NUMMI as the center for developing the eco-friendly California Corolla, it has the potential to lead the auto industry in the development of electric and plug-in technologies. But by leaving California behind, Toyota would also be leaving behind the state that is leading the nation in the development of those green technologies. And by abandoning its workers, the automaker is only drawing even more negative attention to Toyota’s blatant disregard for the well being of those individuals that keep them in business.

As the company seeks to rebuild its commitment to the “Toyota Way,” it needs to seriously reevaluate its recent management decisions. The report concludes

The most immediate, direct, and cost effective jobs program available is to keep NUMMI running. The automaker and California would reap a triple bottom-line benefit: Toyota would restore its image and retain a world-class plant; workers and their families would make it through a dark economic winter; and California would get further down the road to economic growth and a green future.

Rebecca Greenberg is communications organizer at the California Labor Federation Email her at [email protected].

For more than 25 years, thousands of workers in northern California have committed their lives to producing high-quality Toyotas at the Bay Area’s New United Motor Manufacturing Inc (NUMMI) auto plant, and hundreds of thousands of car-buying Californians have made Toyota the #1 car company in the state. So when Toyota announced last year that it plans to close down the NUMMI plant on April 1, 2010, the company dealt an undeserved punch in the gut to California’s workers and consumers, not to mention our state’s already faltering economy.

Toyota’s plan to close down NUMMI is the latest in a string of remarkably poor management decisions from the Japanese automaker, which is still in the hot seat after the recent rash of recalls of millions of Toyota vehicles worldwide. As the company struggles to regain consumer confidence, Toyota has absolutely nothing to gain by closing the plant, and both Toyota and California have just about everything to lose.

Closing the NUMMI plant is bad for:

California workers and their families. If Toyota has its way, more than 5,000 autoworkers at the plant will be out of work, and another 1,500 Teamsters who transport the cars from the NUMMI plant to the dealerships will also be jobless. Additionally, as many as 50,000 workers at hundreds of businesses in California are completely dependant on NUMMI to stay afloat, from the suppliers that manufacture car parts to the restaurants where the NUMMI workers go for lunch and even the shoe stores where the plant workers buy their specialized work boots.

Mari Alvarez, a mother of three, has worked at NUMMI for 9 years, and her husband worked there too, before he got injured. Mari said that if the plant closes

We just don’t know what we’re going to do. It’s not just an economic disaster, it’s a human tragedy.

The economy. There’s no doubt that the closure and subsequent layoffs would be devastating to our already faltering economy. California has already lost a million jobs since the beginning of the recession, and the proposed NUMMI closure would be the largest mass layoff in California since the recession began.  

Last week, State Treasurer Bill Lockyer introduced a new Blue Ribbon commission tapped to investigate just how dire the effects of the closure will be across California’s economy.

Lockyer explained:

Californians are deeply concerned about how the loss of this plant might affect their economy, their state and their lives, and it is the job of this Commission to help find the answers to those questions. It is a testament to the quality of leaders on this panel that they have been more than willing to take up this challenge

.

The commission — which includes representatives from labor, business, consumer, environmental, religious and political communities, as well as actor Danny Glover, who is a lifelong civil rights advocate — will be completing their investigation by Wednesday, and a delegation will travel to Japan shortly thereafter to present the commission’s findings to the Toyota executives.

The environment. Even though Californians buy more Toyotas than anywhere else, Toyota would rather increase their carbon footprint by shipping hundreds of thousands of cars to California from overseas, when they could be making them right here where they sell them.

In fact, if Toyota stuck by their promise to begin manufacturing the Prius (one of the most popular cars in northern California) and other hybrid vehicles at the NUMMI plant, instead of importing them, it would not only reduce greenhouse gas emissions, it would more than make up for the work lost when GM went bankrupt and was forced to discontinue manufacturing the Pontiac Vive. Toyota claims GM’s pull out was the primary reason for the decision to close NUMMI. In reality, GM production at NUMMI represented only 10% of 2008 production and less than 20% over the past five years.

Carl Pope, president of the Sierra Club, wrote in a letter to Toyota President Akio Toyoda:

California’s leadership in clean vehicles will drive up demand for the very best, and Toyota can show its commitment to the consumers in this state by bringing hybrid manufacturing to NUMMI.

Taxpayers. Toyota has the taxpayers to thank for dropping millions into the “cash for clunkers” program, which benefitted Toyota far more than any other car company. Toyota also received a variety of taxpayer-funded incentives and subsidies for training programs. And if the plant does close, the taxpayers will wind up footing the bill for the shutdown costs.

NUMMI is the last remaining auto plant on the West coast, and Toyota’s only unionized auto plant. NUMMI has consistently won top ratings from J.D. Powers for its outstanding commitment to efficiency, productivity and safety.  But if Toyota shutters the plant, tens of thousands of California workers will be left jobless, despite the fact that the company has never closed any of its other plants, nor have they ever laid off a single Japanese worker.

Toyota might think the NUMMI closure is a done deal, but we don’t. That’s why we’re supporting the UAW along with the AFL-CIO, Teamsters and dozens of other unions, environmentalists and community allies on a massive campaign at Toyota dealerships across the country to urge Toyota to make a U-turn and keep the NUMMI plant open.

Toyota’s plan to close the NUMMI auto plant in Fremont is an outright attack on union workers. And if they won’t employ our workers, then we won’t buy their cars. Sign the pledge today at http://bit.ly/4xYAif and vow not to buy any more Toyotas if the company shuts down the NUMMI plant.

Rebecca Greenberg is communications organizer at the California Labor Federation. Follow her on Twitter @CaliforniaLabor.

The UAW’s strike against GM is not just about their members’ healthcare…but also about the healthcare of millions of people not represented by a powerful union.  We’ll look at the potential impact of this historic strike and what it means for workers and the nation that is healthcare increasingly becoming the central issue for labor, both in bargaining and activism…

…cross-posted at the National Nurses Organizing Committee/California Nurses Association’s Breakroom Blog, as we organize to make 2007 the Year of GUARANTEED healthcare on the single-payer model.

You probably know that the UAW has called a national strike against GM.  This is the first auto strike since 1976, the first strike against GM since 1970…and the first strike since the AFL endorse a “Medicare for All” style guaranteed healthcare plan.

And what are they fighting for?

G.M., in return, had pushed for the creation of a trust that would assume responsibility for its $55 billion liability for health care benefits for workers, retirees and their families….Union officials criticized G.M. for continuing to pay bonus compensation to its executives, while pressing U.A.W. members to make concessions.

No one keeps the stats, but about 90 percent of strikes are caused by the issue of healthcare.  The labor movement remains at the heart of the movement to protect and expand access to healthcare for all people, while employers are looking to get out of the healthcare field.  It is cruel and short-sighted of employers to just want to drop benefits rather than look for solutions that are in everbody’s interests.  Don’t take my word for it.  Ask GM Canada:

Just two years ago, GM Canada’s CEO Michael Grimaldi sent a letter co-signed by Canadian Autoworkers Union president Buzz Hargrave to a Crown Commission considering reforms of Canada’s 35-year-old national health program that said, “The public healthcare system significantly reduces total labour costs for automobile manufacturing firms, compared to their cost of equivalent private insurance services purchased by U.S.-based automakers.” That letter also said it was “vitally important that the publicly funded healthcare system be preserved and renewed, on the existing principles of universality, accessibility, portability, comprehensiveness and public administration,” and went on to call not just for preservation but for an “updated range of services.” CEOs of the Canadian units of Ford and DaimlerChrysler wrote similar encomiums endorsing the national health system.

And guess what?  It’s only going to get worse.  Just like GM will try to dump their U.S. employees out of the healthcare system, and end their own interest in solving the healthcare crisis, many of the healthcare reform proposals being floated by politicians will encourage the same thing to happen. 

Let’s look at the emerging deal between Schwarzenegger and the legislature in California:

Employers spend between 12% and 15% of payroll on average for health care, and CNA fears either the 4% or 7.5% plan would encourage them to move to high-deductible insurance policies with limited services, Communications Director Chuck Idelson said.

“If you think we have a lot of labor strife now over health-care benefits, wait until this plan goes into effect,” Idelson said of the Democratic bill.

Unlike employers, labor unions, however, won’t give up the fight for guaranteed healthcare.  Why?  Because more and more employers think of Medicaid and charity care as their health benefit.  And now even healthcare workers are in danger of losing their healthcare. 

Strikes like the UAW’s will help us build momentum for guaranteed, single-payer healthcare-and force corporations to really grapple with the crisis.  The rapid unionization of America’s RNs will also provide the movement with a committed, organized, knowledgable group of activists who are personally committed to improving patient care. 

As UAW is standing up to GM, California’s nurses will take the lead in standing up to the fake healthcare reform bill that is being pushed by a “coalition of the willing” Sacramento insiders.  Healthcare hero Sen. Sheila Kuehl, author of the groundbreaking single-payer bill SB 840, gives an update on the strategy:

  “I continue to believe that the movement that’s been building for single payer, a movement that has seen support for a single payer universal health care system more than double over the last six months alone, will continue to build in ’08 in’09 in 2010,” Kuehl said. “Then, with a new governor, perhaps there might finally be a chance to get a signature on the bill that is actually the best solution for businesses, for employees, and for all the people in California. Because if you take the insurance companies out of the system, and they are the only entity that adds no value at all to the provision of health care, the overall costs for health care in California drop $19 billion in the first year alone, simply because we’re finally not paying their inflated overhead and profit.” 

And finally, Zenei Cortez, RN, a member of the Council of Presidents of the California Nurses Association/National Nurses Organizing Committee issued the following statement on the UAW strike:

America’s registered nurses recognize that the UAW is standing up not just for their own healthcare-but for the healthcare of all our patients.  The California Nurses Association and National Nurses Organizing Committee strongly supports their efforts, and will continue to work to see guaranteed healthcare won for autoworkers and everyone else in this nation.

To join the fight for guaranteed healthcare (with a “Medicare for All” or SinglePayer financing), visit GuaranteedHealthcare.org, a project of the National Nurses Organizing Committee/California Nurses Association.