# BMW Closes LA Warehouse; Lays Off Workers



## Captain Roundel (Dec 3, 2009)

Nice...

http://www.latimes.com/business/la-fi-hiltzik-20110703,0,1163343.column


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## ///M Rakete (Apr 1, 2002)

Not closed. It will be outsourced to a logistics business that specializes in the operations of parts distribution, etc.

Yes, many of those people will lose their jobs.


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## Jon Shafer (Dec 15, 2001)

Sounds awful (for the employees who were counting on BMW)...


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## Sloan165 (May 29, 2011)

all but 3 of the 71 workers will be fired. Something which would never occur if the shop resided in Germany.


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## BMW220i (Jun 6, 2011)

Sloan165 said:


> all but 3 of the 71 workers will be fired. Something which would never occur if the shop resided in Germany.


German labor is not competitive. VW cannot compete in the US and now has to resort to making cars in Mexico and the US for the American market. BMW, Mercedes, and Audi are only competitive since there is a domestic market for lots of fast and capable cars so that they sell some of those cars at a high price overseas.

Airlines used to do a lot, from aircraft cleaning to hotels. Later, they concentrated on their core business, what they knew what to do. Hotel, they spun off or sold. Some smaller business functions, they outsourced. BMW NA is doing this. They see that outside companies can do a better and more efficient job than they can.

Ultimately, a leaner and competitive BMW helps consumers. BMW cannot survive by simply saying "we have the best cars so we can overlook costs and then charge $50,000 for a 328i".

Of course, long time workers who counted on lifetime employment are in for a shock and probably a worse lifestyle.

It is too bad that all Americans are not so skilled, smart, and in demand that they would do the highest paying jobs and companies would have to import Mexicans to do unskilled work and work that needs less education (like the BMW parts depot).

It is also too bad that all but 3 of the 71 workers have potential problems ahead of them. Many of them have spent a lot and not had a nest egg. I hope that after 20 years of work, I will have a decent amount saved for retirement and also enough to last 3-5 years of unemployment followed by finding a lower paying job. That requires a lot of financial discipline.


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## Sloan165 (May 29, 2011)

BMW220i said:


> German labor is not competitive. VW cannot compete in the US and now has to resort to making cars in Mexico and the US for the American market. BMW, Mercedes, and Audi are only competitive since there is a domestic market for lots of fast and capable cars so that they sell some of those cars at a high price overseas.
> 
> Airlines used to do a lot, from aircraft cleaning to hotels. Later, they concentrated on their core business, what they knew what to do. Hotel, they spun off or sold. Some smaller business functions, they outsourced. BMW NA is doing this. They see that outside companies can do a better and more efficient job than they can.
> 
> ...


I agree with most of what you said however the money that BMW saves won't go to give us better less expensive cars or even better engineering or simply better cars minus lessening the cost. It will simply go to the share holders who don't care about our cars like we do or the people who service this industry


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## ///M Rakete (Apr 1, 2002)

Sloan165 said:


> I agree with most of what you said however the money that BMW saves won't go to give us better less expensive cars or even better engineering or simply better cars minus lessening the cost. It will simply go to the share holders who don't care about our cars like we do or the people who service this industry


It's more likely that, directly anyway, it will allow BMW to manage price increase pressures here in the U.S. The cost of their own parts production, cost of shipment of said parts to the U.S., and related costs like money (currency exchange) are only increasing, as might have been the wages of these folks. Cutting costs can increase profitability but it also offsets other unavoidable/less avoidable cost increases that might otherwise require price increases and revenue loss.


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## enigma (Jan 4, 2006)

A typical liberal newspaper column from California. While I feel sorry for those who are losing their jobs, the one-sided story is an embarrassment to say the least.


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## E36 Phantom (Apr 3, 2007)

Not to sound callous, but that rant was absurd. Seriously....getting paid $25/hr + full benefits for unskilled warehouse labor? That's crazy. I'm sure a 3rd party could do it for much much less. Sorry, but its not even like being a skilled tradesman, that's the kind of work you get high schoolers to do, not plan to raise a family off of. Poor planning on the workers' parts. Also, the sky is hardly falling when they lay off 60 something people in a company with thousands of employees. 

Sent from my Droid using Bimmer App


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## BeemerMikeTX (Jun 6, 2010)

Interesting thread. It would also be interesting to see what is the philosophical opinion of the various posters about what is (or should be) the core, fundamental guiding corporate goal of BMW, and how that opinion correlates to their opinion about what BMW is doing with the warehouse.


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## dalekressin (Sep 3, 2008)

It is understandable why the plant is closing.
Our perspectives would differ if the plant closing directly affected us.


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## Jon Shafer (Dec 15, 2001)

The key data points will be how will this change affect the performance/delivery of said parts to the technicians in the service centers? BMW parts distribution was very German prior to this. By that I mean like a Swiss train, you could set your clock by parts deliveries. If that does not continue, dealers and hence consumers will pay the ultimate price -- extended stays in the service bays due to slower order fulfillment. The likelihood of the incorrect part being shipped from the distribution center will probably go up as well.


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## Sloan165 (May 29, 2011)

dalekressin said:


> It is understandable why the plant is closing.
> Our perspectives would differ if the plant closing directly affected us.


+1 Absolutely


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## Sloan165 (May 29, 2011)

@JonS.- I like that thought also, you get the labor that you pay for and you would probably be a lot harder pressed to by the same type of pride for say $12.00 an hour. It always seems to work both ways I guess.


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## enigma (Jan 4, 2006)

Jon S. said:


> The key data points will be how will this change affect the performance/delivery of said parts to the technicians in the service centers? BMW parts distribution was very German prior to this. By that I mean like a Swiss train, you could set your clock by parts deliveries. If that does not continue, dealers and hence consumers will pay the ultimate price -- extended stays in the service bays due to slower order fulfillment. The likelihood of the incorrect part being shipped from the distribution center will probably go up as well.


I am not sure if I agree the service level will drop drastically enough that we'll notice the change.

I don't believe the wages paid to the union workers is a good gauge of their productivity or quality of work. For example, Amazon's non-union workers, who get paid much less, have never shipped me the wrong item out of the hundreds of million items in their inventory or late.

Again, I am very sorry for those who are losing their jobs and their families, but BMW has chosen a more economical (and maybe a more efficient) path. We probably have the Sacramento bureaucrats to thank for creating such an anti-business environment in California. Case in point: Toyota's Fremont plant left California in 2010. This is a trend we are seeing in California, and I doubt it will stop unless we fix the fundamental problem instead of demonizing the companies that are leaving.


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## ///M Rakete (Apr 1, 2002)

Jon S. said:


> The key data points will be how will this change affect the performance/delivery of said parts to the technicians in the service centers? BMW parts distribution was very German prior to this. By that I mean like a Swiss train, you could set your clock by parts deliveries. If that does not continue, dealers and hence consumers will pay the ultimate price -- extended stays in the service bays due to slower order fulfillment. The likelihood of the incorrect part being shipped from the distribution center will probably go up as well.


I would say the parts delivery portion of the service process is already broken and may have been for some time.

My 135i just spent 2 months idle in the service bay for nothing other then a front brake caliper. Now I'll grant that brake calipers are rarely replaced and so stock would be few or one. However there were none in NA and none in Germany. For 7 weeks. It's my and the dealership's understanding that BMW finally sent someone to Leipzig to pull one off the assembly line. That is a broken process if there's ever been one.

Having said that the performance on 99.9% of the parts distributed through the system will likely remain unaffected by this action and admittedly in my case the employer affiliation of the workers had no bearing on my situation.


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## dalekressin (Sep 3, 2008)

Jon S. said:


> The key data points will be how will this change affect the performance/delivery of said parts to the technicians in the service centers? BMW parts distribution was very German prior to this. By that I mean like a Swiss train, you could set your clock by parts deliveries. If that does not continue, dealers and hence consumers will pay the ultimate price -- extended stays in the service bays due to slower order fulfillment. The likelihood of the incorrect part being shipped from the distribution center will probably go up as well.


This regretably is highly likely with a third party outsource.


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## TRS550 (Jan 2, 2010)

E36 Phantom said:


> Not to sound callous, but that rant was absurd. Seriously....getting paid $25/hr + full benefits for unskilled warehouse labor? That's crazy. I'm sure a 3rd party could do it for much much less. Sorry, but its not even like being a skilled tradesman, that's the kind of work you get high schoolers to do, not plan to raise a family off of. Poor planning on the workers' parts. Also, the sky is hardly falling when they lay off 60 something people in a company with thousands of employees.
> 
> Sent from my Droid using Bimmer App


This.


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## Jon Shafer (Dec 15, 2001)

I worked as General Sales Manager at a large BMW Center for eight years, and that was after stints with Honda, Nissan, and Chrysler/Jeep. From experience, there was something very BMW about even the parts distribution process. I'm serious. It's an attitude I would say, a positive attitude derived from pride of working for arguably the best large auto manufacturer on Earth. I am sure the sheer cleanliness of the facilities was at least a standard deviation above the mean if anyone kept track of that sort of stuff. I am not just blowing smoke out my tailpipe when I say that I doubt that a 3rd-party outsourcer will carry that same level of pride as BMWNA workers do. That goes from the top brass at Woodcliff Lake on down to the undergraduate Summer interns and everyone in between. You all might not notice an obvious difference, but I suspect that dealership personnel will right away...


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## energetik9 (Sep 9, 2008)

Sloan165 said:


> I agree with most of what you said however the money that BMW saves won't go to give us better less expensive cars or even better engineering or simply better cars minus lessening the cost. It will simply go to the share holders who don't care about our cars like we do or the people who service this industry


And this is no different than any other corporation. What is the point of this thread????


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## Kamdog (Apr 15, 2007)

energetik9 said:


> And this is no different than any other corporation. What is the point of this thread????


That maybe if BMW is beginning to do things the same way GM, Ford, and the rest do it, that BMW will become just more expensive Fords.


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## Andrew*Debbie (Jul 2, 2004)

The quality of the parts distribution system is one of the reasons we keep coming back to BMW. My first BMW was 10 years old when I bought it. Even when it was 15 years old, I could get interior parts. Not only do parts arrive when promised but * they are always the correct parts and in perfect condition.* Eleven years and five cars later, we've never had a single problem with a BMW part. I can't say that for any other car brand we've owned. Well, Vauxhall is one for one. Ask me again in ten years.

=====

$12/hour is $24,960 a year. That is not a living wage in Los Angeles. Not a decent one. Apartments are $2000/month. No benefits either.


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## Andrew*Debbie (Jul 2, 2004)

http://www.heraldsun.com/view/full_...r-less-at-S-C--plant?instance=homeseventhleft

New Hires at the SC plant are being paid $15/hour -- but SC is a less expensive place to live and they get benefits.


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## enigma (Jan 4, 2006)

Jon Shafer said:


> I worked as General Sales Manager at a large BMW Center for eight years, and that was after stints with Honda, Nissan, and Chrysler/Jeep. From experience, there was something very BMW about even the parts distribution process. I'm serious. It's an attitude I would say, a positive attitude derived from pride of working for arguably the best large auto manufacturer on Earth. I am sure the sheer cleanliness of the facilities was at least a standard deviation above the mean if anyone kept track of that sort of stuff. I am not just blowing smoke out my tailpipe when I say that I doubt that a 3rd-party outsourcer will carry that same level of pride as BMWNA workers do. That goes from the top brass at Woodcliff Lake on down to the undergraduate Summer interns and everyone in between. You all might not notice an obvious difference, but I suspect that dealership personnel will right away...


I was one of the lucky customers who got to buy from your dealership in SB (until you forced us to find a new one! ), and I don't doubt what you're saying about the corporate culture at BMWNA.



Andrew*Debbie said:


> http://www.heraldsun.com/view/full_...r-less-at-S-C--plant?instance=homeseventhleft
> 
> New Hires at the SC plant are being paid $15/hour -- but SC is a less expensive place to live and they get benefits.


SC is a less expensive place, but I am willing to bet much of the difference comes from union (CA) vs. non-union (SC) affiliations. I doubt BMWNA will be building plants in California any time soon.


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## Kamdog (Apr 15, 2007)

enigma said:


> I was one of the lucky customers who got to buy from your dealership in SB (until you forced us to find a new one! ), and I don't doubt what you're saying about the corporate culture at BMWNA.
> 
> SC is a less expensive place, but I am willing to bet much of the difference comes from union (CA) vs. non-union (SC) affiliations. I doubt BMWNA will be building plants in California any time soon.


No. You are wrong. It is less expensive because most things are cheaper. Rents are lower, restaurant food is cheaper, houses cost less, there are fewer services and the taxes are lower. You know, it is cheaper because it costs less.

That's why retirees move there. Lower taxes, they vote against all school budgets, cheaper houses, lower utilities, it is just cheaper to live there overall.


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## caesarp (Mar 24, 2011)

Captain Roundel said:


> Nice...
> 
> http://www.latimes.com/business/la-fi-hiltzik-20110703,0,1163343.column


It sux to get laid off -- but 5 kids? Seriously, who can afford that on any salary? I never understand why people have so many kids? Don't they realize that each mouth adds more food costs, clothing costs, shelter costs, educational costs?


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## S93D (Apr 24, 2008)

caesarp said:


> It sux to get laid off -- but 5 kids? Seriously, who can afford that on any salary? I never understand why people have so many kids? Don't they realize that each mouth adds more food costs, clothing costs, shelter costs, educational costs?


Not only that but if the kid sits on your lap and talks to you, how can you do it to 5 kids at the same time? How can octomom do it? Not enough time. Octomom has 8 kids plus some other kids.


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## pointandgo (Apr 9, 2010)

California's Senator Barbara Boxer has sent a "token" letter to the president of BMW NA, protesting the labor "exchange"...a very short letter (she's so busy). I think it was "auto" signed. You have to remember that CA goes OUT OF ITS WAY to be business UNFRIENDLY; Calif looks at businesses and employers as being the ENEMY for some reason. That's the PRICE YOU PAY for being a liberal, Democratic, unfriendly business environment. Look at CA's UNEMPLOYMENT rate. BMW could have moved everything to MEXICO, or NEVADA...the're only several hours away and much more business friendly than California. I'll drive a fork lift for $12 - 15 bucks an hour at the BMW warehouse. It's twice what Burger King pays, plus I get health care bennies (worth at least $1,200/mo).
That's min. $43,200/year, not including O/T. Not bad for a high school grad, 1st year of employment. Of course, if I had applied myself a little better in school, I wouldn't be worried about being a fork lift driver/warehouse worker and losing a $25/hr job. 
Screw the unions. They ruined Detroit and BMW isn't going to let them ruin them.


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## Sloan165 (May 29, 2011)

@pointandgo, minimum wage in California is currently $8.00 an hour which is 25 cents less than Nevada's and so not quite twice the wage Burger King is willing to pay. Not to mention I would not let my high school son loose with a fork lift without some serious training and practice. 

I still think that a very important part of any cohesive workforce that performs above expectations is simply not something that you can merely put a dollar amount on. As I said earlier "you get what you pay for" holds true here. I make somewhere in the neighborhood of what some of these folks were making at the warehouse and would certainly be more than a little miffed at someone generalizing my performance or my job's scope of work who hadn't walked a mile in my shoes so to speak.

I am not saying that BMWNA necessarily did anything wrong with changing the dynamic of the warehouse but I don't see the point of demeaning or trivializing what these folks do for a living. Just my two cents.


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## pointandgo (Apr 9, 2010)

Sloan165 said:


> @pointandgo, minimum wage in California is currently $8.00 an hour which is 25 cents less than Nevada's and so not quite twice the wage Burger King is willing to pay. Not to mention I would not let my high school son loose with a fork lift without some serious training and practice.
> 
> I still think that a very important part of any cohesive workforce that performs above expectations is simply not something that you can merely put a dollar amount on. As I said earlier "you get what you pay for" holds true here. I make somewhere in the neighborhood of what some of these folks were making at the warehouse and would certainly be more than a little miffed at someone generalizing my performance or my job's scope of work who hadn't walked a mile in my shoes so to speak.
> 
> I am not saying that BMWNA necessarily did anything wrong with changing the dynamic of the warehouse but I don't see the point of demeaning or trivializing what these folks do for a living. Just my two cents.


The unions think their doing a great job...driving jobs out of Calif. to Nevada and Mexico. What? They don't think that businesses are mobil? Union membership is down? I can't believe it!


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## SD ///M4 (Jan 24, 2011)

pointandgo said:


> The unions think their doing a great job...driving jobs out of Calif. to Nevada and Mexico. What? They don't think that businesses are mobil? Union membership is down? I can't believe it!


Yeah, you're a conservative, anti-union, Republican who hates the working class. We get it.


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## S93D (Apr 24, 2008)

Labor negotiations are difficult. The union probably thought they were doing a good job, increasing the pay. However, finally they were asking too much. It's difficult. If they didn't run up wages, then some may question their usefulness. BMW probably figured that wages were too high that they couldn't negotiate downward enough successfully. Rather than fight a messy battle, BMW just got out of the warehousing business.

Though not the same, selling a house involves some strategy. Price it too high in some areas and buyers will not negotiate or even make an offer. A few may make low ball offers. In other areas of the country, people are more willing to make an offer. On the other hand, price it too low and you'll get a buyer paying a low price, not the amount that the house is worth.


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## Andrew*Debbie (Jul 2, 2004)

pointandgo said:


> I'll drive a fork lift for $12 - 15 bucks an hour at the BMW warehouse.


OK. Let's look at this from a purely business and financial point of view.

BMW are going to save around $1million a year. In exchange they are getting bad press and worse they are putting a best in class parts distribution system at risk.

In a normal economy there is a significant difference between quality, experienced blue collar labor and someone working at close to minimum wage. I spent a few hours at a package sorting center in Atlanta. Now I know why my parcels go missing. The people "working" there don't know what they are doing and don't care.

This *will* come back to bite BMW when people start complaining about problems with parts.

$1million may sound like a lot of money, but it is only 10 750i sedans or 24 328i coupes.


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## Michael Schott (Dec 7, 2007)

pointandgo said:


> California's Senator Barbara Boxer has sent a "token" letter to the president of BMW NA, protesting the labor "exchange"...a very short letter (she's so busy). I think it was "auto" signed. You have to remember that CA goes OUT OF ITS WAY to be business UNFRIENDLY; Calif looks at businesses and employers as being the ENEMY for some reason. That's the PRICE YOU PAY for being a liberal, Democratic, unfriendly business environment. Look at CA's UNEMPLOYMENT rate. BMW could have moved everything to MEXICO, or NEVADA...the're only several hours away and much more business friendly than California. I'll drive a fork lift for $12 - 15 bucks an hour at the BMW warehouse. It's twice what Burger King pays, plus I get health care bennies (worth at least $1,200/mo).
> That's min. $43,200/year, not including O/T. Not bad for a high school grad, 1st year of employment. Of course, if I had applied myself a little better in school, I wouldn't be worried about being a fork lift driver/warehouse worker and losing a $25/hr job.
> Screw the unions. They ruined Detroit and BMW isn't going to let them ruin them.


So much to argue in this post.

1) The average tenure in this warehouse is over 20 years. Long tenured employees are going to make more money. As well, the cost of living in the LA area is very high. You can't pay someone who has worked there for 20 years $12.00/hour and expect them to live in a 1200 sq ft home that costs $500,000.00. $43,200.00/yr is chump change in Southern Cal.

2) The unions were part of the reason for the collapse of the US Auto Industry. The main reason was the garbage cars they produced for so long. To this day there is no American car I'd even consider to replace my 328i. That's a management decision by the Big 3.

3) Last, the union was ready to give concessions. They weren't even given a chance as BMW's business plan was to outsource this part of the business. It's going to be very hard for these workers to find work. The economy in California is pretty bad.


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## pointandgo (Apr 9, 2010)

SD 335is said:


> Yeah, you're a *conservative*, anti-union, *Republican *who hates the working class. We get it.


Wrong on both counts; merely someone who knows what it's like trying to do business in CA. I'm surprised BMW is even staying here. Chief Executive magazine's annual survey has ranked CA dead last for seven years in a row as a desirable place to do business:
http://chiefexecutive.net/best-worst-states-for-business
Other surveys mimic these results.

CA politicians still don't get it even after the last auto assembly plant in CA closed recently: the NUMMI-Gm joint venture after Toyota said that is wasn't "economically viable" to continue production. The union thought it might have had something to do with them; go figure. CA's blizzard of regulations didn't help.

A U.C. Berkeley survey (2009) of wages in the CA "Inland Empire" where BMW's warehouse is located noted median warehouse worker wages of $39.8K (full time)...and an unskilled workforce with over 22% non-high school graduates. According to BMW's wage scale (and benefits) they would have been paying $66,400 (including $1,200/mo health care) in the same labor market ($25/hr).

Many large companies have flocked to the Inland Empire and established distribution centers due to the availability of a large, non-union, unskilled labor force. Although the U.C. Berkeley report concluded that "unionization" was one of the solutions to bring up wages in the Inland Empire warehousing industry, that proposal didn't seem to work this time.


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## Captain Roundel (Dec 3, 2009)

Well, my post has had many well-thought out responses. Even Jon Shafer responded.

Overall it was crappy thing to do by BMW. They had a well-trained knowledgable work force that will be replaced by low wage outsourced grunts. I doubt they'll ever come close to what they had. But hey who cares about America's middle class? :dunno:


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## luckydog (Nov 22, 2010)

enigma said:


> A typical liberal newspaper column from California. While I feel sorry for those who are losing their jobs, the one-sided story is an embarrassment to say the least.


Agree La Times is a heavily slanted lib rag. I'm sure that union was a loser in LA. California is the most unfriendly place to be in business and getting worse all the time. Good move By BMW staying ahead of the game.


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## Michael Schott (Dec 7, 2007)

pointandgo said:


> Wrong on both counts; merely someone who knows what it's like trying to do business in CA. I'm surprised BMW is even staying here. Chief Executive magazine's annual survey has ranked CA dead last for seven years in a row as a desirable place to do business:
> http://chiefexecutive.net/best-worst-states-for-business
> Other surveys mimic these results.
> 
> ...


Once again you don't address the issue that the average tenure of the employee was 20 years which heavily contributes to the high hourly pay. What is the average tenure of the median warehouse employee in the Inland Empire? You could also add $14,400.00 to the $39.8K you cite for their benefits.


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## pointandgo (Apr 9, 2010)

Captain Roundel said:


> Well, my post has had many well-thought out responses. Even Jon Shafer responded.
> 
> Overall it was crappy thing to do by BMW. They had a well-trained knowledgable work force that will be replaced by low wage outsourced grunts. I doubt they'll ever come close to what they had. But hey who cares about America's middle class? :dunno:


California cares about the "middle class" *a lot*. According the the IRS, CA's state income tax bracket for a $37,233 wage earner would be 8%, on TOP OF a 8%+ sales tax rate for everything you buy depending on where you live, not to mention high car registration and license fees. That's a LOT of money to take out of a poor bastards pay check. If there are greedy thieves at work trying to screw the middle class, I'd look to the *state*. All we have to do is *reduce the tax rate for low wage earners *and reduce or eliminate sales taxes on essentials such as food, clothing (such as Massachusetts). Hey, it's a Democrat dominated government. Aren't they supposed to be advocates for the needy?


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## pointandgo (Apr 9, 2010)

Michael Schott said:


> Once again you don't address the issue that the average tenure of the employee was 20 years which heavily contributes to the high hourly pay. What is the average tenure of the median warehouse employee in the Inland Empire? You could also add $14,400.00 to the $39.8K you cite for their benefits.


I also didn't include CA's "workman's compensation" insurance costs. NO, the 39.8K does not include health benefits...as those are generally NOT provided, depending on the company. Yes, Toyota's huge parts distribution center, just down the street from BMW would probably provide health insurance to a *certain class of workers*. As the U.C. Berkeley report pointed out, many warehouse operations in the Inland Empire (and I am very familiar with this), have a very high percentage of "temporary workers" from temp agencies. This practice (unfortunately) has driven down warehouse worker wages in the area. Temp labor operations is a huge business in the Inland Empire (forklift drivers, general warehouse workers).


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## Sloan165 (May 29, 2011)

@pointandgo didn't Tesla make arrangements for that Nummi plant?


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## Sloan165 (May 29, 2011)

michael schott said:


> so much to argue in this post.
> 
> 1) the average tenure in this warehouse is over 20 years. Long tenured employees are going to make more money. As well, the cost of living in the la area is very high. You can't pay someone who has worked there for 20 years $12.00/hour and expect them to live in a 1200 sq ft home that costs $500,000.00. $43,200.00/yr is chump change in southern cal.
> 
> ...


+1


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## djfitter (Sep 12, 2007)

Sloan165 said:


> @pointandgo didn't Tesla make arrangements for that Nummi plant?


Tesla reopens Fremont's former Nummi plant
FREMONT
October 28, 2010|By Will Kane, Chronicle Staff Writer

With one wave of his hand, Elon Musk, the CEO of electric-car startup Tesla, breathed new life into the former Nummi auto manufacturing plant in Fremont, shuttered since General Motors and Toyota walked away from the factory in the last year.

"Well, we have a very large sign and we're going to raise the curtain now," he told a crowd of reporters, politicians and employees Wednesday. "This may take a while."

As he gestured toward the factory behind him, workers struggled to remove several large tarps that covered a huge Tesla sign on the side of the building.

That sign, now visible from nearby Interstate 880, is a sign of what is to come, said Sen. Dianne Feinstein, D-Calif.

"This factory marks the dawning of a new day for manufacturing in Fremont and the East Bay," she said. "This is proof of what's possible in California," she added.

dj


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## luckydog (Nov 22, 2010)

Yes Tesla will sell a few to the very wealthy. Just one problem, the amount of electricity involved is nothing to ignore. I install charging units for these cars. 90 amp circut and all night to charge. My whole ranch runs on 90amp breakers.its a massive appliance to have plugged in .i would guess the elect bill to increase by $300 mth to people already paying 1200-1500 a mth in utilitys.


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## Andrew*Debbie (Jul 2, 2004)

We are getting off topic here, but electric power demand is high during the day and very low late at night.

Power to e-car customers should be sold on a 2 or 3- rate tarrif. This can be done and it isn't that hard.

Smart meters and variable rates have been available here in the UK for years. The simplest systems use 2 traditional meters conected to a timer...


Yes, you do increase your electric bill. Even with current CA single rate rates, you pay far less in electrcity than you would for gasoline.


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## S93D (Apr 24, 2008)

Sloan165 said:


> all but 3 of the 71 workers will be fired. Something which would never occur if the shop resided in Germany.


:dunno:
BMW moved X3 production from Austria to the U.S. BMW has been making cars in South Africa for a long time. BMW also produces in the former East Germany, which has lower wages.

Continental, a German tire company, makes lots of tires in Brazil and Mexico. Many sizes of the popular ExtremeContact DW and DWS are made in Brazil, Mexico, and the U.S., not Germany.


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## luckydog (Nov 22, 2010)

S93D said:


> :dunno:
> BMW moved X3 production from Austria to the U.S. BMW has been making cars in South Africa for a long time. BMW also produces in the former East Germany, which has lower wages.
> 
> Continental, a German tire company, makes lots of tires in Brazil and Mexico. Many sizes of the popular ExtremeContact DW and DWS are made in Brazil, Mexico, and the U.S., not Germany.


 This is a result of The teamsters union becoming unsubstainable. The move to de-unionize was the correct one.I have worked a few years for the teamsters a poorly managed outfit. 40 years of union waste for carmakers and a changing low skilled immigrant labor force,car makers could not expect to maintain productivity.What happens in Califorina replicates across the country.


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## gt0279a (Dec 29, 2007)

> This is a result of The teamsters union becoming unsubstainable. The move to de-unionize was the correct one.I have worked a few years for the teamsters a poorly managed outfit. 40 years of union waste for carmakers and a changing low skilled immigrant labor force,car makers could not expect to maintain productivity.What happens in Califorina replicates across the country.


Luckily, there are already 22 right to work states that have been ahead of California for some time.


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## chrischeung (Sep 1, 2002)

BMW should be fine. It's easier to punish a supplier/vendor than discipline an emplyee/union. Their suppliers to GSP run like clockwork - unions or not.

A pity for those laid off. As usual, life throws you aver curve balls every now and then. I hope I'm not naive.


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## FedUpWith335i (Jan 22, 2011)

dalekressin said:


> It is understandable why the plant is closing.
> Our perspectives would differ if the plant closing directly affected us.


It's only about 'me' after all, right?


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## bimmerguy (Dec 26, 2001)

One of the major reasons I shop at Costco is because they take care of their workers and in turn they take care of me. I'd rather spend my money with a company that takes care of it's own, than one that leaves behind a bunch of shattered dreams so they could make their shareholders a couple more cents next quarter.


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## Sloan165 (May 29, 2011)

bimmerguy said:


> one of the major reasons i shop at costco is because they take care of their workers and in turn they take care of me. I'd rather spend my money with a company that takes care of it's own, than one that leaves behind a bunch of shattered dreams so they could make their shareholders a couple more cents next quarter.


+1


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## Wonderbob (Apr 30, 2009)

"Screw the unions. They ruined Detroit and BMW isn't going to let them ruin them."

Well said Nissan Hyundai Toyota BMW etc all build cars union free in southern right to work states!


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## Sloan165 (May 29, 2011)

Wonderbob said:


> "Screw the unions. They ruined Detroit and BMW isn't going to let them ruin them."
> 
> Well said Nissan Hyundai Toyota BMW etc all build cars union free in southern right to work states!


Really? I suppose it all the union's fault and that the corporations had absolutely no responsibility in the failures that have plagued the big three at all?


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