Jobs victory for BMW workers in the US

The jobs of some 70 workers at a BMW parts distribution centre in the US have been saved after a new agreement between the Teamsters union and the company was brokered.

Endorsed by members on 29 October, the deal ends a dispute that started in June, when BMW management claimed it would not renew its contract with the Teamsters, but would instead outsource the management of the parts distribution centre in Ontario, California. It planned to dismiss the employees and bring in new workers who were likely to receive lower wages.

In a bid to support their colleagues in California, unions took part in solidarity actions at major BMW vehicle shipper ports in Australia, Belgium, Germany, Mexico, Netherlands, South Africa and Thailand. ITF affiliates also held protests at BMW plants, dealerships and offices.

Under the agreement, the work will continue to be outsourced, however, current warehouse employees will now remain in their jobs; they accepted a lower base wage and other concessions in return for job security over the next nine and a half years. Base wages will fall from US$25 per hour to US$23.50 per hour, but the performance incentives outlined in the new contract could see wages rise. The employer will also pay 100 per cent of all healthcare benefits for five years and continue with the Teamster pension plan, significantly improving its hourly contribution rate over the term of agreement. In addition, in years two to five, members will receive a two per cent wage increase each year.

"Our members are excited," Teamsters Local 495 representative Gene Rivera said. "They are happy to have a job. They are happy to have security for nine and a half years."

Tim Beaty, director of global strategies at the Teamsters, stated: “Solidarity from the BMW manufacturing unions in Germany, Austria and the UK supported by the IMF and solidarity from dock workers around the world coordinated by the ITF were key to convincing the company to change course.”