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Toyota, UAW Reach Tentative NUMMI Closure Agreement

Mon, 03/15/2010 - 11:25am

FREMONT, Calif. (AP) — The United Auto Workers union has reached a tentative agreement to shut down California's sole remaining auto plant which employs 4,600 people.

The terms weren't disclosed Monday but will include payouts for workers at the Fremont-based Nummi plantwhich is slated to close on April 1. The agreement is subject to a ratification vote by the plant's workers, probably take place later this week.

Messages left Monday with Nummi and the UAW were not immediately returned.

Toyota Motor Corp. said earlier this month that it will spend $250 million assisting employees at the factory, which makes the Toyota Corolla sedan and Toyota Tacoma pickup.

Nummi, which stands for New United Motor Manufacturing Inc., began 25 years ago as a joint venture between Toyota and General Motors Co. The goal was to let GM observe the Japanese car-making system and let Toyota test out its production model on U.S. workers.

GM, which briefly went into bankruptcy protection last year, pulled out of the alliance and is liquidating its stake. Toyota announced in August that without GM, it could not sustain the factory and it would halt production.

Toyota plans to move production of the Corolla to Canada and Japan and the Tacoma to Texas.

The UAW represents the Nummi workers because of its history with GM. The union doesn't represent any other Toyota workers in the U.S.

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