The employment contract of BMW workers at a California parts warehouse has been extended for six months, after an agreement was reached between BMW AG and the Teamsters union. This averted about 100 layoffs that were set to take place in late August.
BMW wanted to implement a cost-saving measure that it had used at its other parts warehouses in the U.S. of hiring an outside company to manage the warehouse when the current labor contract on expires Aug. 31.
It hasn’t been determined yet if BMW will pursue plans to outsource the warehouse’s management. The California government and union leaders were critical of this move, which was also met with protests by BMW dealers.
The union said that BMW intended to use the extension period to work with the union to enter "a mutually acceptable solution that addresses long-term employment for workers."
In a statement, Bob Lennox, secretary-treasurer of Teamsters Local 495, said that he was confident that BMW will fulfill its promises for the work force to keep their “good, middle-class jobs." Teamsters Local 495 represents 68 workers at the Ontario parts distribution facility, including clerical staff and supervisors.
On June 3, the warehouse employees were told that their contract won’t be renewed. In a statement, Teamsters General President Jim Hoffa said that this deal demonstrates what can be achieved if they “stand together and fight back.”