Senator Barbara Boxer, a California Democrat who is also the Ethics Committee chairwoman, has joined forces with Teamsters President James P. Hoffa, in an attempt to persuade BMW North America to reconsider its stance on a local labor dispute over 65 jobs.
The German automaker has said it will not renew its contract with Teamsters Union Local 495 that expires on Aug. 31 and will instead hire an outside company to run its parts distribution center, located in Ontario, California.
In a letter sent to BMW North America CEO Jim O'Donnell, the California Senator said that the Bavarian company should rethink its decision and take into consideration the fact that it received $3.6 billion in low-interest loans during the 2008-2009 taxpayer bailout.
“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,” Boxer wrote in the letter.
"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," she added.
Joe Baca, the U.S. Representative for California's 43rd congressional district, also jumped into the dispute and sent a letter to BMW North America’s boss saying more or less the same as Boxer.
"[This] will needlessly layoff workers in a region experiencing the highest rates of unemployment in the country,” said Baca. “Replacing those positions with a low wage workforce is an injustice and a blow to our local economy."
Teamsters Local 495 Secretary-Treasurer Bob Lennox, believes that BMW is abusing the American system.
"BMW would never be allowed to get away with this in Germany -- they wouldn't dare try it," said Lennox. "They think they can take an American taxpayer bailout and then treat their American workers in a way they would never treat their German employees."
21 Comments:
"...it is deeply disappointing that these loyal employees..."
Company loyalty? You're better off smoking crack. If you believe that any major corporation—worldwide—gives a damn about company loyalty or workers in general, you're living in La La Land.
It about time BMW pulls the plug. Congradulation.
I could not believe it, American tax payers to bail out foreign car company, are we supposed to save everyone on earth or what? and with that money, BMW should at least hire 650 American employees instead. screw you BMW, piece of junk that depreciates faster than a Yugo. it's time that you bail out & stay the hell out of the United States of America.
stupid...BMW has factories in the US, Every X5, X6 and X3 is American made and shipped world wide...it IS an American company.
So Boxer speaks up ONLY for the Union Workers..when BMW outsourced the Oxnard VDC (non union) she kept silent...you are in the union bosses back pocket! I guess you only represent workers with unions that send you money...And F the rest of the workers. So much for being a rep for all Californians.
BMW has factories in the US...it IS an American company.
Sorry, but the where the parent company is located is the corporations's country and that would be Germany.
It was not a bailout. It was a loan given to them because the private sector did not have enough capital to lend due to lack off liquidity.
Bmw is a german company that invests in the US. it's cars have and will always sell in this country even if they didn't manufacture some of their models here. They were selling a lot before, they sell a lot now and most likely will sell a lot in the future.
All major manufacturing companies cover their operative costs with external funding. They will never use their own cash for that. It was in the best interest of the government and the nation to lend them that money. They made a profit out of it and they maintained foreign investment in the country.
Bmw can manufacture vehicles in other countries where labor is cheaper yet they do it here. Do they benefit because of that? Yes, their margins for vehicles manufactured and sold here are larger.
Stop thinking this country resolve everyone's problem. On the contrary, we only intervene when we will benefit from it. Giving Bmw that loan was not to help BMW but help th USA.
I do agree that the senator is being greased by the union. It's not like we are talking about 65000 jobs, it's 65. A very insignificant amount even if unemployment is on the rise. Remember that nor all unions are good intended and that any business owner un BMW 's position will try to protect their business as well.
It's not like American companies are in favor if unions. Walmart doesn't like it, McDonald's doesn't like it, Apple doesn't like it, Best Buy doesn't like it, heck! NO AMERICAN COMPANY LIKES IT. They lobby and strongly fight the formation of unions. Some of them even treat their employees with firing them if they even gather and meet to discuss the possibility if forming a union.
By the way, almost all politicians drive American made cars when their in office but when they're not, they drive BMW 's.
Im sorry but American worker charge too much money for thier incompetence and ineficiency.
BMW is your typical snobbish auto maker. It doesn't care about American workers loyalty. They should be taxed even more in America.
Its all about GREED,no more BMW's for me,who going to but their products if they keep doing this.
Im sorry but American worker charge too much money for thier incompetence and ineficiency.
Along the lines of your spelling?
BMW should pull all those jobs out of California. Would MS. Boxer learn to keep her mouth shut?
She's right. In countries like Germany and France and Scandanavia, there are all kinds of worker rights enforced on a governmental level which we see only similary in unions in the US. In Germany they probably have more worker-protection oriented laws that might limit what BMW can do to to a worker. But we don't.
States give them all these tax breaks and incentives, but then they can do whatever any company can do. It's our own damn fault for not having something like the level of worker protections found in many European countries, particularly when a state gives all those incentives to locate there.
Some of these particular workers at BMW's ontario facility have been with them since they came to the states. They are the ones that helped this company get to where they are today. I know first hand how much BMW cares about any of its workers. THEY DON'T. As for the union we will see how much they support those same workers when they go home on August 31 when they stop receiving their dues from them.
Middle class lifestyle is vanishing in America because of corporate decisions just like this - ask yourselves if your kids will have a life as good as yours, or your parents did? The answer? NO, not if companies like BMW, Walmart, etc. have their way - BMW made over $800,000 PER EMPLOYEE last year, and decides it needs to fire these people?! G R E E D is the reason people, greed.. good bye American middle class - we're turning into Brazil day by day.
oh, boo woo!
Middle class lifestyle is vanishing in America because of corporate decisions just like this - ask yourselves if your kids will have a life as good as yours, or your parents did? The answer? NO, not if companies like BMW, Walmart, etc. have their way - BMW made over $800,000 PER EMPLOYEE last year, and decides it needs to fire these people?! G R E E D is the reason people, greed.. good bye American middle class - we're turning into Brazil day by day.
Some of these particular workers at BMW's ontario facility have been with them since they came to the states. They are the ones that helped this company get to where they are today. I know first hand how much BMW cares about any of its workers. THEY DON'T. As for the union we will see how much they support those same workers when they go home on August 31 when they stop receiving their dues from them.
It about time BMW pulls the plug. Congradulation.
yet the UAW bleeds its own countries Automakers dry all while knowing that they cant do anything about it. A snob company????? Im sad they lost their jobs but tell me this is she or anyone else raising hell about the hundreds of other people who arent overpaid that lost their jobs NO!!!!. BMW lays "65" people off and the world is over are you serious??? You can bet your bottom dollar that if GM, Ford, and Chrysler could do the same they would dump them asap
BMW received $3.6 billion in low-interest loans during the 2008-2009 taxpayer bailout? How come that didn't make any noise when everyone was sooo upset about bailing out GM?
"We the people" are so stupid by electing republicans to congress so they can cut our throats. It really disgusts me.
Back in the day that crap BMW is pulling used to be illegal in labor law. But republicans get into office, load the NLRB with union-busters and change those regs. and the MSM never says diddley about that.
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