US labour union asks Toyota to reverse decision to close factory


Tokyo - Leaders of the largest US autoworkers' union urged Toyota Motor Corp Tuesday to reverse its decision to shut a car plant in the US state of California. In a meeting with Toyota executive vice president Atsushi Niimi at company headquarte
Posted : Tue, 09 Mar 2010 07:32:08 GMT
By : dpa
Category : Business
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Tokyo - Leaders of the largest US autoworkers' union urged Toyota Motor Corp Tuesday to reverse its decision to shut a car plant in the US state of California. In a meeting with Toyota executive vice president Atsushi Niimi at company headquarters in central Japan, the United Auto Workers union pressed the firm to keep the joint venture with the US-based General Motors Company.

Union vice president Bob King told the Nikkei Business daily that the closure of New United Motor Manufacturing Inc would severely hurt local employment. The plant is located south-east of the city of San Francisco.

King said 4,700 jobs would be lost directly, and as many as 20,000 others from related manufacturers and suppliers.

Toyota announced its decision late August 2009 to close the plant, which was set up in 1984 as a 50-50 joint venture with GM.

California Governor Arnold Schwarzenegger has also asked Toyota not to shut down the factory.

But an unnamed Toyota official told Kyodo News, "We don't intend to alter the plan to halt production as of April 1."

Toyota had said that it would not be able to run the plant profitably on its own, as GM pulled out of the venture.

King called that "an excuse," and said the plant's operational status was improving from last year.

He told Nikkei that the union would work with the US Congress and lobby Toyota to keep the factory open.

King's request for a meeting with company president Akio Toyoda was not granted.

Toyoda told reporters Monday that the plant's closure would proceed as planned.

Copyright DPA

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