We’ve been following the closure of the NUMMI auto plant – a joint venture between GM and Toyota – for a few weeks, now, and the stories we’re hearing from NUMMI workers about the UAW are incredible. Stranger than fiction incredible.

First, there’s the fact that more than 80% of NUMMI’s workers signed a petition critical of the UAW.

Next, there’s a video showing a UAW leader dropping F-bombs on NUMMI workers at a union meeting.

Now, we’re being told that the UAW is planning on taking 3% of whatever severance package NUMMI’s workers receive. What, exactly, is the justification for taking a percentage of a worker’s last-ever paycheck?

Technically, when the workers voted in the UAW back in 1980-whatever, they agreed to pay the union for representation. In that strict, legal sense, the workers owe the UAW a percentage of any compensation they receive.

However, NUMMI’s workers don’t believe they’re getting representation. Instead of working hard to come up with a severance package for NUMMI’s workers, the UAW is using NUMMI’s closure to try and make a political statement against Toyota. The UAW is supposed to be committed to it’s members, but many NUMMI employees believe the UAW has their own interests in mind.

NUMMI management has told workers:

“as time passes, it becomes more difficult to justify a significant payment” to retain plant workers until the last car rolls off the line

Frankly, this makes perfect sense. The whole point of offering NUMMI employees a generous severance is to ensure their co-operation during the plant’s closure. As closure draws nearer, there’s less incentive to pay for performance. So why is the UAW dragging their feet?

The UAW Owns 17.5% of GM

Many NUMMI workers are arguing that, because the UAW owns part of GM, they’re unwilling to pursue GM for money. UAW Local 2244 President Sergio Santos admits as much to the San Francisco Chronicle, but he says that it’s due to GM’s bankruptcy. Yet if the UAW is being so logical when choosing not to pursue GM, why then are they trying to publicly embarrass Toyota?

  1. Santos is right – the UAW won’t get a penny from the “old” GM that is embroiled in bankruptcy. Still, applying public pressure to GM would make workers feel better and might generate some political sympathy…and it’s possible that the new GM would send over some cash as a result.
  2. The UAW wants to hurt Toyota. The UAW is at odds with Toyota because, historically, Toyota’s efficient and low-cost US auto plants have been used to make the UAW look bad. This is a sad example of petty, political grievances impacting negotiations.
  3. The UAW wants to help GM sell cars. The future of the UAW is tied to GM – if GM succeeds, the UAW stays relevant. If GM continues to struggle, the UAW risks fading out of existence.

So there you have it – the UAW wants to hurt Toyota because it helps the union’s bottom line. Unfortunately, NUMMI’s workers will suffer as a result. To add insult to injury, NUMMI workers will likely have to pay for the privilege of being screwed over by the union that’s supposed to represent them.

Truth is stranger than fiction, isn’t it?

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