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    Teamsters, BMW Battle Over Layoffs in Ontario, Calif.

    By Sylvia Cochran | Yahoo! Contributor Network – Sat, Jul 16, 2011
    This story comes from the Yahoo! Contributor Network, where individuals publish their unique perspectives on some of the world’s most popular websites.
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    Tempers are flaring as the Teamsters Local 495 is launching BMW Ultimate Misery to draw attention to BMW's planned mass-firing of 65 union workers from its Ontario, Calif. parts distribution center. What are the parties and their supporters saying?

    * "It is my understanding that BMW has plans to outsource jobs at the Ontario California Distribution Center beginning August 31, 2011. These plans will end a 40-year partnership with Teamsters Local 495 and put an end to 65 union jobs. -- Replacing those positions with a low wage workforce is an injustice and a blow to our local economy." -- Letter, dated 6/15/11, from Joe Baca (D-CA 43) to BMW CEO J. O'Donnell.

    * "During the financial crisis in 2008 and 2009, BMW received $3.6 billion in taxpayer assistance from the United States Federal Reserve when private capital was frozen. As the economic recovery continues, it is deeply disappointing that these loyal employees would be penalized at a time when your company recently reported 2011 first quarter earnings of $1.78 billion -- triple that of first quarter earnings in 2010 -- and first quarter sales 21 percent greater than last year." -- Letter, dated 6/22/11, from Democratic Sen. Barbara Boxer to BMW USA CEO J. O'Donnell.

    * "The first layoffs will occur during the 14-day period beginning August 31, 2011. We anticipate that approximately 65 employees represented by Teamsters Local 495 will be separated on that date." -- Letter, dated 6/27/11, from Human Resources Manager J. Nash to Secretary-Treasurer B. Lennox of the Local No. 495. The letter was linked by the Los Angeles Times.

    * "Simply put, the Company has stated its clear intention to focus on core competencies: the engineering and building of automobiles. This decision has nothing to do with economics. As a result, BMW will no longer distribute parts out of the southern California distribution center. It will, however, continue to manufacture parts." -- Letter, dated 7/11/11, from L. Stone of Jackson Lewis LLP to J. Cutler, Esq. of Wohlner Kaplon Phillips Young & Cutler. The letter is published via the Teamsters.

    * "BMW would never be allowed to get away with this in Germany. Many of these employees have worked there for 10, 20, 30 years. BMW got bailed out with nearly $4 billion in top-secret low-interest federal loans and in exchange, they are mocking America's plant closing laws and destroying working families. They are treating their American workers in a way they would never dare to treat their German employees." -- B. Lennox, Secretary-Treasurer of Local 495 via a press release dated 7/14/11.

    Sylvia Cochran is a Los Angeles area resident with a firm finger on the pulse of California politics. Talk radio junkie, community volunteer and politically independent, she scrutinizes the good and the bad from both sides of the political aisle.

     

    2 comments

    • lovethoseeagles
      lovethoseeagles  •  10 mths ago
      This is why unions exist. This is an example of how BMW treats its non-European facilities. The union has never caused a problem at this facility. In 2009 when the economy tanked, the BMW plant in Spartanburg, SC is the main reason that BMW actually turned a profit that year. During that crisis, employees at the Spartanburg plant were offered extremely low buyouts to leave the plant: $60k before taxes and they had to sign a legal contract that would never allow them to work for any BMW affiliate again. When the crisis ceded (not that it was a crisis for BMW as they still turned a profit), UNION employees of BMW's European facilities were all given "stamina bonuses" for staying with the company during trying times. Non-union US workers were paid to leave and union European workers were paid extra for staying.

      Additionally, the Spartanburg plant is the most profitable facility that BMW operates. Yet when BMW needs a cushion to help its stock price that cushion always comes from taking away form the US operations. It is a fact that right now in 2011, the majority of hourly workers at Plant Spartanburg have worse benefits and take home the same or less money than they did three years ago. Meanwhile BMW is reporting record profits and the cost of living has risen dramatically.
    • DLR
      DLR  •  10 mths ago
      Its amazing how much power these unions think they have. This is their biggest problem, power over the employer. In this case it is obviously much cheaper and much more effective to outsource these union jobs but the union as usual does not want to see the light. Unionist are not realists, they continue to demand more and more while the corporations are giving out less and less. Wake up unions its a new day. The most prospoerous states in the union are right to work states.
      • Gene Rivera
        Gene Rivera 10 mths ago
        this is not about power this is about employees who have help build this company to the #1 luxury automaker and continues to make record profits. regardless if they are represented by a union this is just corporate greed. these workers are fortunate to have a voice and someone in their corner to help them expose this move for what it is. this company has done this with non union facilities and customer service has failed. not to mention there is no future working with an outsource company or temp agency. as for working for 10 to 15 dollars an hour with no benefits, especially when this company make over $800,000 per employee in it organization. companies need to stop treating it's employees like old rags, just because you can exploit and take advantage of today's economic situation doesn't not make it right.
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