The German automaker has said it will not renew its contract with Teamsters Union Local 495 that expires on Aug. 31 and will instead hire an outside company to run its parts distribution center, located in Ontario, California.
In a letter sent to BMW North America CEO Jim O'Donnell, the California Senator said that the Bavarian company should rethink its decision and take into consideration the fact that it received $3.6 billion in low-interest loans during the 2008-2009 taxpayer bailout.
“During the financial crisis in 2008 and 2009, BMW received $3.6 billion in taxpayer assistance from the United States Federal Reserve when private capital was frozen,” Boxer wrote in the letter.
"As the economic recovery continues, it is deeply disappointing that these loyal employees would be penalized at a time when your company recently reported 2011 first quarter earnings of $1.78 billion -- triple that of first quarter earnings in 2010 -- and first quarter sales 21 percent greater than last year," she added.
Joe Baca, the U.S. Representative for California's 43rd congressional district, also jumped into the dispute and sent a letter to BMW North America’s boss saying more or less the same as Boxer.
"[This] will needlessly layoff workers in a region experiencing the highest rates of unemployment in the country,” said Baca. “Replacing those positions with a low wage workforce is an injustice and a blow to our local economy."
Teamsters Local 495 Secretary-Treasurer Bob Lennox, believes that BMW is abusing the American system.
"BMW would never be allowed to get away with this in Germany -- they wouldn't dare try it," said Lennox. "They think they can take an American taxpayer bailout and then treat their American workers in a way they would never treat their German employees."
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