Toyota's One Unionized Factory to Close

If there was ever any doubt that unions are injurious to workers and management, one need only look at what will happen to Toyota’s one unionized factory in Fremont, California, where the company makes the popular Corolla.

Toyota’s management voted yesterday to close its Fremont facility, which employees 4,700 workers. Atsushi Nimi, Toyota’s VP for North America, reported that “it would not be economically viable” to keep the factory operating. In other words, during the current economic slump, which has had a devastating effect on the auto industry, Toyota finds it far more profitable to operate its numerous non-union facilities in Alabama, Indiana, Kentucky, Texas, and West Virginia, where the UAW has not been able to organize pro-management employees.

Toyota will import Corollas manufactured in Canada and Japan. Economists believe that the closing of the Fremont facility will ultimately cost 40,000 jobs in the state.

Gary N. Chaison, a professor at Clark University, where he teaches labor relations, stated that factory’s unionized status probably sealed its fate, according to a report in The New York Times.

Once again, unions are proving to be a major obstacle to our economic recovery, especially for manufacturers who operate in heavily unionized states.