This week, while I was returning from a trip to the Bay Area in California, I couldn’t help but bemoan local news reports that Toyota was closing its sole unionized facility in the country. The factory was a Toyota and GM joint venture that opened in 1984 as an experiment for Toyota to make automobiles in the US and for GM to acquire more effective procedures from Japan. California state officials estimate that the ripple effect will cost the state 40,000 jobs overall. 4,700 employees will lose their employment at the facility in Fremont, CA.
On multiple levels, I find Toyota’s decision to be wholly unfair and unwarranted. The hottest item was the Corolla, ironically built at this Fremont plant, and Toyota even had to bring more workers in to keep up with demand generated by this program. First, the carmaker has made out royally in the last few months, selling more cars than any other manufacturer through the U.S. taxpayer-subsidized “cash for clunkers program.” So here we have American auto workerswho happen to be unionized working overtime to crank out cars so this Japanese car maker can.
Second, Toyota is closing the only facility it has that is unionized, thus this is an effort to save money at the expense of the workers. The firm actually runs plants in Alabama, Indiana, Kentucky, Texas, and West Virginia, none of which are being shut down. The UAW has failed in its attempts to unionize Toyota in these additional states.
Although they “truly regret” having to take this decision, a spokeswoman for Toyota in North America stated that “over the mid-to long term, it would not be economically sustainable to retain the factory.” So, shut down the union plant because the pay and perks are marginally higher. That is awful. I couldn’t agree more with UAW President Ron Gettelfinger when he said that the plant’s Toyota employees “deserve better than to be abandoned by this firm, which has gained so greatly from their labor, their productivity, and their commitment to quality.”
In This Article...
Does Toyota use union labor?
In the US and Canada, there are two distinct auto industries: one is unionized at Chrysler, Ford, General Motors, NUMMI, and Mitsubishi. Toyota, Nissan, Honda, and a few more more recent entrants make up the non-union industry.
Toyota is anti-union, why?
Toyota has managed to prevent unionization in part by locating its manufacturing facilities in rural locations where the workforce is appreciative of their jobs and is not used to unions. In the impoverished city of Tupelo, Mississippi, Toyota will soon open a new facility.
According to William Maloney of the University of Kentucky’s Center for Labor Education and Research, “Toyota has adopted a grand strategy of establishing in smaller southern towns without a history of organizing.”
Many employees believe they have a great deal in terms of compensation and benefits, therefore they are unsure about the advantages of unionizing.
James, a Toyota employee, expressed it more plainly. Eastern Kentucky workers came from “nothing,” and they are too appreciative and afraid to complain about their unfavorable working conditions.
There are hundreds more out there, James added, so Toyota can replace them. Toyota is aware of this. They advise us to leave if we don’t like it. McDonald’s has openings.
The current four-year contract between the UAW and the Detroit manufacturers expires in September, and a summer of heated negotiations will be coming to a close, according to anti-union worker Howard. At that time, Toyota will likely announce modifications to its pay and benefits package.
“At the moment, in my opinion, the union campaigners are exhausted,” Howard stated. “I believe their campaign is over if the wage announcement this fall is positive. However, they might win more support if a large enough number of the team members find it undesirable.
Toyota choose Kentucky; why?
The Toyota Motor Corporation of Japan has been active in the North American market since 1957[2],[3] established its first production line in the US at NUMMI (New United Motor Manufacturing, Inc.), a joint-venture with General Motors, in 1986. This was the company’s first manufacturing investment in North America.
[4]
Following those initial forays, Toyota was prepared to set up fully-owned production facilities in North America.
At press conferences on December 11, 1986 in Kentucky and December 12, 1986 in Canada, the business had planned to announce that it was opening factories in Georgetown, Kentucky (then known as Toyota Motor Manufacturing USA), and Cambridge, Ontario (then known as Toyota Motor Manufacturing Canada). Sen. Mitch McConnell, however, broke the news early on December 8. [5]
On May 26, 1988, a prototype Camry with a 4-cylinder engine from the 1989 model year left the factory.
[6]
[7] The engines were first produced in the Toyota Kamigo facility in Toyota City, Japan, and brought to TMMK; however, from 1988 to 1992, an on-site engine plant was established, raising the American content to 75%. The production method was enhanced by the workers. [8] [9]
Beginning in October 2015, TMMK started producing the Lexus ES sedan, bringing 50,000 automobiles and 750 jobs to the factory each year. Toyota made a $360 million investment to cover the additional work. [10] According to Akio Toyoda, president of Toyota Motor Corporation, “Lexus was formed in the United States, so it is only natural that we are bringing the manufacture of luxury sedans for our U.S. customers back to where the brand was created.” “The fact that Kentucky was the site of Toyota’s first independent plant in America makes our choice all the more appropriate. So in a manner, Kentucky is Toyota’s home for manufacturing. Additionally, it boasts some of the most seasoned Toyota team members everywhere.” [11] The Kentucky Cabinet of Economic Development’s Daniel Lowry complimented Kentucky’s skilled workforce, stating Lexus wants its best workers to be a part of the brand’s first U.S. manufacturing expansion. [11]
Currently, it produces the RAV4 Hybrid for the 2020 Model Year, the Avalon sedan, the Camry sedan, the Lexus ES sedan, and the Camry. It previously made the Camry Solara coupe and convertible, the Sienna minivan, the Venza crossover, and. The facility also makes powertrain components including 4- and V6-cylinder engines. Two Toyota assembly lines, one Lexus assembly line, and an engine shop with a capacity of 600,000 engines per annually each comprise the plant’s three automotive assembly lines. In addition to putting cars and engines together, TMMK has an on-site plastics shop where a lot of the plastic components are produced.
In order to get the all-new 2018 Camry ready for production, Toyota invested $1.33 billion in the factory and created 700 new employees in 2017. The first examples of this vehicle rolled off the assembly line on June 28, 2017. The 2018 Camry’s foundational TNGA (Toyota New Global Architecture) technology is being used for the first time in the US at TMMK.
Toyotas are union-built, right?
Not all automobiles made in the US or Canada are constructed by workers who are members of unions. The UAW makes the Toyota Corolla in the United States, for instance, while the Canadian model is produced in a non-union facility, and other vehicles are imported from another nation.
Does Indiana’s Toyota have a union?
The non-unionized Subaru, Toyota, and Honda facilities in Indiana employ more than 8,000 workers, making it one of the few traditional union states with a sizable foreign carmaker presence.
What does Toyota in Georgetown, Kentucky, get paid?
Georgetown has a median annual salary for Toyota Team Members of $51,010, which is 56% higher than the national median.
9 data points, including direct feedback from workers, users, and previous and present job postings on Indeed in the last 36 months, were used to calculate salaries.
Please be aware that all salary ranges are estimates based on Indeed submissions from third parties. Users of Indeed are merely provided with these numbers for general comparison purposes. For an accurate compensation estimate, you should speak with the company as minimum wages may vary by jurisdiction.
What is produced by Toyota in Georgetown, Kentucky?
Toyota Motor Manufacturing, Kentucky, Inc. (TMMK) is Toyota’s largest automobile manufacturing factory in the world, annually capable of producing 550,000 vehicles and more than 600,000 engines. Two years after breaking ground in Georgetown, Kentucky, Toyota produced its first Camry in May 1988. Since then, Toyota’s assembly lines in Kentucky, where more than 9,000 people work full-time, have produced more than 12 million automobiles. In addition to the Camry, the most popular car in America, TMMK also produces four-cylinder and V-6 engines, the Avalon, Avalon Hybrid, RAV4 Hybrid, Lexus ES 300h, and Lexus ES 350. Since 1988, Toyota has contributed more than $150 million to a range of charitable and educational projects.
What types of automobiles are produced by Toyota in Georgetown, Kentucky?
At the Georgetown factory, Toyota presently produces the Camry, Avalon, Lexus ES 350, Camry hybrid, and Avalon hybrid. At the facility, four-cylinder and V-6 engines are also produced. As the first “wholly-owned car production plant in the United States,” Toyota developed the facility.
Mark Crawford, Staff Editor, Area Development
The Bluegrass State’s automotive industry is still thriving because to an expanded supply chain. Every imaginable auto component, from bumpers to engine parts to windshields to frames, is produced by hundreds of suppliers.
Over 100,000 people work in 513 auto-related facilities in Kentucky. Right now, it is the country’s top producer of light vehicles per capita. Kentucky was the second-highest producer among the 50 states in April 2017. In 2017, the state is on track to produce 1.3 million vehicles, according to estimates. The Toyota Camry, Ford Escape, and Ford F-series Super Duty are the top three cars made in Kentucky in terms of volume. In 2016, Kentucky’s automotive industry exported components, bodies, trailers, and whole automobiles totaling close to $5.44 billion in goods.
The 2017 Super Duty pickup is the first of a new generation with an aluminum alloy body that is being produced at the Kentucky Truck Plant (KTP) in Louisville. The plant, one of two Ford assembly facilities in Kentucky, also manufactures the Ford Expedition and Lincoln Navigator SUVs, whose 2018 models will include aluminum bodywork. For the purpose of preparing for the manufacturing of the new model trucks and SUVs, Ford invested $1.3 billion in KTP and added 2,000 new positions.
Over $8.7 billion in investments have been announced in the automotive sector in Kentucky since 2010, creating close to 30,000 new jobsroughly one-third of all new investments and jobs created in the state. In reality, Kentucky’s record-breaking corporate investment thus far this year has been significantly influenced by the automobile industry. Companies committed to new facility investments and expansion projects totaling more than $6.76 billion in the first half of 2017, smashing the previous full-year record established in 2015 of $5.1 billion. This constant stream of investment announcements has Kentucky on track to add the most new jobs in a decade this year.
Ford Motor Company
KY Louisville
At its Louisville Assembly Plant, Ford Motor Company manufactures the Ford Escape and the Lincoln MKC (LAP). The Expedition, Lincoln Navigator, and F-Series Super Duty trucks are made in the Kentucky Truck Plant (KTP), which is also located in Louisville.
Toyota Motor
Guenther, Kentucky
More than 25 years ago, Toyota Motor Manufacturing Kentucky (TMMK) shipped the first Camry off its Georgetown assembly line. Since then, TMMK has built more than 10 million Camrys.
With four large assembly plants from Toyota, General Motors, Ford (two plants), and other manufacturers, Kentucky is one of the top locations for sophisticated automobile manufacturing in the nation.