UAW OKs Severance Pact in Calif. Plant Shutdown

Melanie Smith, who has worked at the New United Motor Manufacturing Inc. auto plant for 21 years in...

Melanie Smith, who has worked at the New United Motor Manufacturing Inc. auto plant for 21 years in quality control, holds up a copy of the tentative agreement she voted to accept outside the United Auto Workers union hall in Fremont, Calif., Wednesday, March 17, 2010. The UAW says guild employees at California's sole remaining auto plant will likely ratify an agreement to shut down the facility. Workers at the Fremont-based Nummi plant are voting on the proposed deal Wednesday. The facility, which employs 4,600 workers, is slated to close April 1. (AP Photo/Eric Risberg)

(AP)

Workers at the New United Motor Manufacturing Inc., known as Nummi, have voted in favor of a proposed severance package for the 4,600 workers about to lose their jobs when the plant closes, according to the United Auto Workers.

The UAW said in a statement Thursday that 90 percent of the workers who voted were in favor of the package. The union's headquarters in Detroit would not say how many members voted or release details of the pact.

Before Wednesday's vote, which was completed at 7 p.m., leaders of the United Auto Workers local at the plant said they encouraged members to ratify the agreement despite being disappointed at aspects of the deal.

They wouldn't discuss the proposal in detail, though Javier Contreras, chairman of the bargaining committee, said the union was able to add $28 million to the severance package during negotiations, bringing the total to over $200 million. He said each worker would get a minimum payout of $21,175.

NUMMI, a joint venture between General Motors Co. and Toyota Motor Corp., is scheduled to close on April 1. Union leaders reached the severance deal with NUMMI on March 15.

"While this is not the outcome we had hoped for, the terms of this agreement will certainly help cushion the impact for our members," UAW Vice President Jimmy Settles said in a statement.

GM pulled out last year and is liquidating its stake in the factory. Toyota announced in August that without GM, it could not sustain the factory and it would halt production at the plant, which makes the Corolla sedan and Tacoma pickup.

Over the past several weeks, state officials and union leaders have pressed Toyota to keep the plant open. They've said its closure would be devastating to California's economy, already hit hard by the global downturn, and have a ripple effect on jobs throughout the state. A recent report prepared for a commission set up by State Treasurer Bill Lockyer to study the issue said about 25,000 people, including parts suppliers, could lose their jobs as a result of the plant closing.