Protesting Toyota's California Plant Closing

On the likely closing of California’s only auto plant, SJSU Economics Dept. Chair Lydia Ortega summed up the state’s problems in an interview with KPIX-TV tonight: “We want to do more to protect wetlands than we want to do to protect jobs.”

This was the postscript on a videotaped report that the United Auto Workers were outside the Fremont plant with protest signs says “Save NUMMI Jobs.” KPIX has video of the protest but not Prof. Ortega.

Somehow I must be missing something: how is having a bunch of angry union workers out there protesting in front of the Toyota (TM) facility going to make the employer more likely to keep the plant open? (For example, wouldn’t a rational employer want to get rid of a plant filled with angry workers who march around with protest signs?)

Prof. Ortega is right: business climate is a long-standing issue. Nevada is running ads to aid the ongoing migration of businesses to the casino state. In April, a dozen state legislators heard why:

Attendees heard from more than a dozen businesspeople who complained of high workman's compensation insurance, "predatory" regulators, an unfriendly business climate, a "never ending paper trail of business forms," exorbitant utility expenses, fees, taxes, quality of life and overpriced overhead.
…
Steven Patmont, president of the company that manufactures "California Go-Ped" motorized scooters, said his company left California for Nevada because California doesn't appreciate business. He described how California regulators hit him with hundreds of thousands of dollars of small fines even though his company has a stellar safety record.
…
Villines said he was disturbed to hear so many speakers say that no one from California tried to convince them to stay while Nevada officials have helped businesses scout potential factory sites and have generally made themselves available to business people. Villines said the testimony clearly indicates California isn't business friendly.

So at least two SJSU professors would ask: if blue-collar workers want more manufacturing jobs in California, how about demonstrating in Sacramento to make the state a more favorable business climate for manufacturing?

I can only speculate at possible reasons. Is it because that the unions don’t want to antagonize their customary political allies? Is it because they are so trapped in their Marxist class warfare mentality that they don’t understand the basic economics of job creation? Is it because confrontation is a better career move for union leaders than cooperation?

(BTW, Toyota denies that it’s decided to close the Fremont NUMMI plant, while other reports say Toyota is seeking another partner).

Disclosure: None

Comments

[doubleguns:]

I cant understand why any business would consider CA. Taxes, illegal immigrants (costs), drugs and airheads overwhelm the coast. Money spent on otters over practical needs. Absurd!!!!

The poor bastards in the western and northern sections are screwed.

About the only thing that will ever save CA is for the coast and SF to fall off into the ocean during a quake. Otherwise the budget they had this year will look rich compared to the coming years. CA IOU's will be a yearly thing for years to come.

Aug 21 08:52 AM

[Jimbo:]

The situation in California reminds me of an old joke: A not very bright dude comes home unexpectedly in the middle of the day. He finds his wife in bed with a stranger. The husband rushes over to the dresser and takes out a gun and puts it up to his own head. The stranger says: "what are you doing!?!?" The husband replies:"be quiet, you're next!"

Aug 21 10:10 AM

[Tony Petroski:]

The author wonders:

"Somehow I must be missing something: how is having a bunch of angry union workers out there protesting in front of the Toyota (TM) facility going to make the employer more likely to keep the plant open? (For example, wouldn’t a rational employer want to get rid of a plant filled with angry workers who march around with protest signs?)"

Answer: Yes.

Jimbo: Very funny and it does fit this situation. It also reminds me of the scene from "Blazing Saddles" when Clevon Little threatened to shoot himself.

Operating on the assumption that the folks in front of the plant are neither stupid nor suicidal (it was the usual bullhorns and chanting), I take it their aim is to "raise consciousness," get media attention (it worked) and appeal to those political folks who run California and the U.S. to intervene on their behalf with some backroom deal that will keep the plant open (even if it harms someone in another state and another plant and even at the expense of California's business climate).

Aug 21 10:32 AM

[Tomcat101:]

I bought a Toyota recently. There were about 15 Corollas at the dealership. I went through all of the VIN's to see which ones were made in Japan. There were 3. I bought one of those 3. No way in hell I will ever buy an American car as long as I can get one made in Japan instead. Toyota has had quality issues with their American plants so it is no wonder they want to close some. You cannot polish a turd. American workers, for the most part, are lazy and more concerned about when their next break will be than doing a good job.

Aug 21 12:13 PM

[roywil:]

If the first symbol in the VIN is a "J," it's made in Japan.

"1" indictaes USA. "2": Canada. "3": Mexico.

Here's a general VIN decoder for all makes:
www.analogx.com/conten...

In case you want to know for sure where a Toyota or Honda was built and other info:

www.4crawler.com/4x4/T...

members.lycos.nl/hendr...

Aug 21 02:36 PM

[cynnatalie2000:]

Superb article.

Aug 21 04:59 PM