Toyota Denies Union Organization in Georgetown Plant

Rumors have been coming from the United Auto Workers (UAW) camp that there has been “increased activity” by employees in Toyota’s plant located in Georgetown, Kentucky. Word has it that the employees at the said plant are organizing themselves to form a union.

But recently, Toyota countered the rumors by saying that there have been no signs of increased organizing efforts by their Georgetown employees. This statement was made after a rumor surfaced that Toyota is planning to have wage reduction at the said plant.

It seems that the largest union in North America and the surging car maker are not on the same page. But Toyota also announced that they are not planning to reduce the wages of their employees at the plant. This development comes after UAW received a major blow after the Big Three - General Motors, Ford, and Chrysler - announced that they will be reducing their workforce.

The cutting down of jobs by these three domestic car manufacturer is now set in motion. It can be remembered that the emergence of Asian brands led by Toyota in the U.S. reduced the share of the Big Three in the U.S. auto market.

With problems facing the Big Three, they have opted to cut down production thus reducing the number of workers they have. This step has been bitterly contested by the UAW saying that these companies cannot return to profitability by cutting down jobs. And now, aside from the Big Three, it seems that the union is setting its sight on Toyota which is on its way to being the world’s largest car manufacturer.

Toyota has been making great success in the U.S. market and it has been posting sales record after sales record. If the current trend continues, Toyota will overtake General Motors before the end of the year.

While the Big Three are pestered with problems, Toyota is enjoying success and still continuously provides jobs in their plants located in the U.S. Indeed, the economic success of Toyota serves as Rancho shocks which supports the U.S. auto industry.

While there are still no clear pieces of information whether Toyota employees are organizing a union, there are facts that points out that Toyota employees are in good hands and may not be planning any organizing efforts. Last year, the largest Japanese car maker released up to $8,000 in bonuses for its Georgetown employees. That increased the average pay to $30 per hour. This is significantly more than the $27 per hour offered by the Big Three to its share of UAW workers.