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.