{"id":24260,"date":"2019-10-02T16:43:43","date_gmt":"2019-10-02T20:43:43","guid":{"rendered":"http:\/\/henrypayne.com\/?p=24260"},"modified":"2019-10-02T16:43:43","modified_gmt":"2019-10-02T20:43:43","slug":"honda-marysville-a-non-union-auto-plant-prospers","status":"publish","type":"post","link":"https:\/\/henrypayne.com\/index.php\/2019\/10\/honda-marysville-a-non-union-auto-plant-prospers","title":{"rendered":"Honda Marysville: A non-union auto plant prospers"},"content":{"rendered":"<p><div align=\"left\"><img decoding=\"async\" src=\"https:\/\/www.gannett-cdn.com\/presto\/2019\/09\/25\/PDTN\/846e1850-3f01-4a91-9561-cf37778c1f11-marysville_shift.JPG?crop=2095,921,x477,y10&amp;width=540&amp;height=&amp;fit=bounds&amp;auto=webp\" alt=\"Honda workers - called &quot;associates&quot; - emerge from the Honda Marysville Plant at the end of the 6:30 a.m.-3 p.m. shift. Marysville's non-union plants haven't had a work stoppage in 40 years.\" \/><\/p>\n<\/div><p>Honda workers &#8211; called &#8220;associates&#8221; &#8211; emerge from the Honda Marysville Plant at the end of the 6:30 a.m.-3 p.m. shift. Marysville&#8217;s non-union plants haven&#8217;t had a work stoppage in 40 years.\u00a0<span class=\"credit\">(Photo: Henry Payne, The Detroit News)<\/span><\/p>\n<p class=\"speakable-p-1 p-text\"><em>Marysville, Ohio<\/em>\u00a0\u2014 While the United Auto Workers strike against\u00a0General Motors Co. plants stretches\u00a0on, it&#8217;s been\u00a0business as usual here at Honda Motor Co.\u2019s Marysville assembly.<\/p>\n<p class=\"speakable-p-2 p-text\">Celebrating its 40th year of production this month, the non-union plant has never had\u00a0a work stoppage as it has pumped out two of the most popular vehicles in America:\u00a0the Honda Accord sedan and CR-V SUV.<\/p>\n<p class=\"p-text\">Honda Marysville is not alone.<\/p>\n<p class=\"p-text\">Dozens of so-called foreign &#8220;transplants\u201d\u00a0\u2014 from Asian mainstream manufacturers to European luxury makers \u2014\u00a0have followed Honda\u2019s model across the United States in recent decades. The influx has transformed America\u2019s auto landscape with a cheaper,\u00a0more flexible, non-union workforce model upping competitive pressure on unionized Detroit.<\/p>\n<p class=\"p-text\">Today, the Detroit Three automakers are an island of UAW production\u00a0surrounded by foreign transplants that now make up 48% of U.S. vehicle production, according to the Ann Arbor-based Center for Automotive Research.\u00a0That&#8217;s up from just 17% in 2000. Non-union employment rose from 15% of the industry at the century&#8217;s turn to 39%\u00a0in 2013, according to the most recent Automotive News analysis.<\/p>\n<p class=\"p-text\">\u201cUnions are not dead,\u201d said East Lansing-based economist Patrick Anderson, who noted the strike is costing GM $25 million per day in lost profits. \u201cBut confrontational, obstructionist bargaining as a success strategy is dead. Unions are here to stay only if they are interested in the welfare of their employers as well as their workers.\u201d<\/p>\n<p class=\"p-text\">The UAW says that non-union plants are at a disadvantage\u00a0because union wages are better, the shops are safer, workers&#8217; rights are better represented and disciplinary actions are covered by a grievance procedure.\u00a0But UAW efforts to organize foreign-owned auto plants in the United States have failed repeatedly, despite promises of contract protections and generally higher pay.<\/p>\n<p class=\"p-text\">In response to inquiries from The Detroit News, the union said: &#8220;As a matter of policy, the UAW does not comment on organizing plans and strategies.&#8221; Still, compensation in UAW-represented auto plants trends higher nationwide than non-union shops.<\/p>\n<p class=\"p-text\">Average hourly wages in non-union transplants run\u00a0between $23 and $25 an hour, according to the Center for Automotive Research, compared to roughly $30 an hour for so-called &#8220;legacy&#8221; employees at UAW-represented auto plants. Health-care plans and 401(k) programs are common, and bonuses are comparable to UAW-bargained profit-sharing payouts.<\/p>\n<p class=\"p-text\">Honda\u2019s Marysville is not immune to change. Like the rest of the industry,\u00a0the plant has been whipsawed by changing market forces.\u00a0The Honda Accord \u2014\u00a0the first sedan manufactured here beginning in 1982 \u2014\u00a0is down in sales as consumer\u00a0tastes have shifted to SUVs. But rather than shutter Marysville, as has happened at GM&#8217;s sedan-only plant\u00a0in Lordstown, Ohio, Honda has expanded production for its new best-seller, the CR-V SUV.<\/p>\n<p class=\"p-text\">Honda employs 15,000 people in its facilities across Ohio \u2014\u00a04,700 in\u00a0Marysville \u2014 making it Ohio&#8217;s 13th-largest employer, according to<a href=\"https:\/\/www.cleveland.com\/news\/erry-2018\/06\/008cac58aa80\/ohios_100_largest_employers_20.html\" target=\"_blank\" rel=\"noopener\" data-track-label=\"inline|intext|n\/a\">\u00a0Cleveland.com<\/a>. By comparison, GM employs 17,000 hourly workers across Michigan.<\/p>\n<p class=\"p-text\">\u201cHonda has been good to us,\u201d said 32-year Marysville veteran Merrill Eggleston, 59, at the end of his shift in the plant\u2019s weld shop. \u201c&#8230; The UAW tried to get in here, but we have always had stable employment.\u201d<\/p>\n<p class=\"p-text\">Honda\u2019s manufacturing flexibility\u00a0and continued investment here \u2014\u00a0it has opened\u00a0two more plants in the north Columbus area as well as expanded research on autonomous vehicles \u2014\u00a0have grown a loyal workforce.<\/p>\n<p class=\"p-text\">\u201cWe don\u2019t have a problem here. Which is good because we are privileged to have a job\u00a0\u2014\u00a0Honda could just shut down and move away,\u201d said radiator-and-headlight assembly worker Neal Howard, 49, who has worked here 19 years. \u201cThere is nothing to fight about. We have a good culture here, people just want to work.\u201d<\/p>\n<div id=\"module-position-SIuKa6CgRMs\" class=\"story-asset image-asset\">\n<aside class=\"wide single-photo\"><div align=\"left\"><img decoding=\"async\" src=\"https:\/\/www.gannett-cdn.com\/presto\/2019\/09\/25\/PDTN\/6ff1f485-ae1e-46ba-8806-c95735da1345-marysville_howard.JPG?crop=3622,2268,x410,y0&amp;width=540&amp;height=&amp;fit=bounds&amp;auto=webp\" alt=\"Neal Howard, 49, has worked at Honda Marysville Plant for 19 years. A former bank supervisor, he works on vehicle front-end assembly.\" width=\"540\" data-mycapture-src=\"https:\/\/www.gannett-cdn.com\/presto\/2019\/09\/25\/PDTN\/6ff1f485-ae1e-46ba-8806-c95735da1345-marysville_howard.JPG\" data-mycapture-sm-src=\"https:\/\/www.gannett-cdn.com\/presto\/2019\/09\/25\/PDTN\/6ff1f485-ae1e-46ba-8806-c95735da1345-marysville_howard.JPG?width=500&amp;height=281\" \/>Neal Howard, 49, has worked at Honda Marysville Plant for 19 years. A former bank supervisor, he works on vehicle front-end assembly.\u00a0<span class=\"credit\">(Photo: Henry Payne, The Detroit News)<\/span><\/p>\n<\/div><\/aside>\n<div class=\"clearfix\"><\/div>\n<\/div>\n<p class=\"p-text\">Eggleston and Howard\u2019s sentiments were echoed by other associates interviewed at the end of a long day. They were all aware of the UAW strike but said relations with Honda were good.<\/p>\n<p class=\"p-text\">\u201cHonda works well with us,\u201d said Brittany Mowry, 26, a full-time associate who started as a temporary worker in Marysville in 2011. \u201cWe\u2019ve never had an issue.\u201d<\/p>\n<p class=\"p-text\">Honda first purchased land in Marysville in 1977 to build a motorcycle production facility. The decision proved prescient as Congress,\u00a0<a href=\"https:\/\/www.detroitnews.com\/story\/business\/autos\/2018\/10\/16\/volvo-new-auto-transplant-transcends-tariffs\/1611691002\/\" target=\"_blank\" rel=\"noopener\" data-track-label=\"inline|intext|n\/a\">led by Midwest Democrats<\/a>\u00a0like the late U.S. Rep. John Dingell, sought to impose import quotas on foreign cars as they grabbed more market share from the Detroit Three. The Accord began production here in 1982.<\/p>\n<p class=\"p-text\">Executives at Honda were\u00a0determined to build in the markets where they sold, and the United States\u00a0held huge potential. In the midst of difficult economic times in the late 1970s and early &#8217;80s, Ohio welcomed Honda with open arms after then-Gov. Jim Rhodes\u00a0traveled to\u00a0Japan to sell the company on the Buckeye state.<\/p>\n<p class=\"p-text\">\u201cHe met with Mr. Honda, and they forged a real bond,\u201d said engineer Steve Stolte, who surveyed the first 217-acre property that Honda purchased in Marysville. \u201cHonda had a philosophy where they wanted to build cars in those markets where they were selling them.\u201d<\/p>\n<p class=\"p-text\">Stolte is now a commissioner in\u00a0Union County, where Honda now occupies 8,500 acres of land. That workforce was largely agrarian before Honda, though Union County is home to other large companies like Scotts Miracle-Gro\u00a0and Parker-Hannifin.<\/p>\n<p class=\"p-text\">\u201cThis county was experiencing double-digit unemployment before Honda showed up,\u201d county economic development director Eric Phillips said. \u201cToday, we are the third-wealthiest county in the state with one of the lowest unemployment figures.&#8221;<\/p>\n<p class=\"p-text\">Union County&#8217;s jobless rate was 3.5% in August; statewide, it was 4.2%. Locals now like to say: &#8220;In Union County, we know how to grow beans, corn\u00a0and cars.&#8221;<\/p>\n<p class=\"p-text\">Phillips is aware of the strikes in UAW plants but says the Marysville plants have been content and UAW attempts to organize workers here got no traction. County officials say the UAW had an office in Marysville until about 10 years\u00a0ago.<\/p>\n<p class=\"p-text\">\u201cHonda is the pay standard here,&#8221; Phillips said.\u00a0&#8220;Their average wage of $80,000 pays well. If you have a good-paying job, then folks are going to be pretty happy.\u201d<\/p>\n<p class=\"p-text\">Howard worked as a bank supervisor before he came to work for Honda.<\/p>\n<p class=\"p-text\">\u201cThis pays a lot better than a bank,\u201d he said.<\/p>\n<p class=\"p-text\">The automaker&#8217;s pattern of high-paying, non-union employment has been repeated across the country in transplants from Toyota Motor Corp.\u00a0in Kentucky to BMW AG in South Carolina to Kia in Georgia to Volkswagen AG in Tennessee. Sales of Detroit Three\u00a0competitors have grown from 35% of U.S. market share in 2000 to about 55%\u00a0today, according to CAR.<\/p>\n<div id=\"module-position-SIuKa6C0tOA\" class=\"story-asset image-asset\">\n<aside class=\"wide single-photo\"><div align=\"left\"><img decoding=\"async\" src=\"https:\/\/www.gannett-cdn.com\/presto\/2019\/09\/26\/PDTN\/b0444e31-6dcd-43a9-96e9-0a2b454536fc-marysville_mpc.JPG?crop=4032,2171,x0,y0&amp;width=540&amp;height=&amp;fit=bounds&amp;auto=webp\" alt=\"In addition to the Honda Marysville Plant, Honda has a number of assembly plants across Ohio including  the Honda Performance Center in Marysville that produces Acura's $160k supercar, the NSX.\" width=\"540\" data-mycapture-src=\"https:\/\/www.gannett-cdn.com\/presto\/2019\/09\/26\/PDTN\/b0444e31-6dcd-43a9-96e9-0a2b454536fc-marysville_mpc.JPG\" data-mycapture-sm-src=\"https:\/\/www.gannett-cdn.com\/presto\/2019\/09\/26\/PDTN\/b0444e31-6dcd-43a9-96e9-0a2b454536fc-marysville_mpc.JPG?width=500&amp;height=281\" \/>In addition to the Honda Marysville Plant, Honda has a number of assembly plants across Ohio including the Honda Performance Center in Marysville that produces Acura&#8217;s $160k supercar, the NSX.\u00a0<span class=\"credit\">(Photo: Henry Payne, The Detroit News)<\/span><\/p>\n<\/div><\/aside>\n<div class=\"clearfix\"><\/div>\n<\/div>\n<p class=\"p-text\">The transplants have long had a cost advantage over UAW plants. In 2007, before\u00a0GM&#8217;s bankruptcy, Detroit Three plants hourly labor costs averaged $78 an hour (wages plus benefits), according to CAR, compared to\u00a0$47 an hour for non-union plants. Closing that gap was a crucial requirement of the 2009 federal bailout of GM and Chrysler, and it remains a competitive challenge in this fall&#8217;s contract talks between the UAW and the Detroit Three.<\/p>\n<p class=\"p-text\">Today, says CAR\u2019s Kristin Dziczek, that gap has been narrowed to $63 for GM&#8217;s\u00a0UAW plants versus $50 for non-union. But that doesn\u2019t tell the whole story as transplants still have the flexibility to peg their wages to local manufacturing norms in different communities where they build.<\/p>\n<p class=\"p-text\">\u201cThe transplants can set regional wages,\u201d Dziczek said. \u201cGM can\u2019t do that. The Detroit Three negotiate national pattern agreements with the UAW so that they don\u2019t compete against each other on wages.\u201d<\/p>\n<p class=\"p-text\">The lack of wage and workplace flexibility add up to big drags on the efficiency of UAW plants versus their non-union competitors.<\/p>\n<p class=\"p-text\">\u201cAt Honda, everybody is an associate, so that allows a more flexible workforce. There\u00a0is not the multiplicity of job classifications as in union plants,\u201d said Auto Trends Consulting\u2019s Joe Phillippi, a longtime industry analyst. \u201cIn a UAW plant, no one can do someone else\u2019s job. You don\u2019t have the spirit of teamwork like you do in a non-union plant.\u201d<\/p>\n<p class=\"p-text\">Added Anderson, the East Lansing economist: &#8220;No question a labor cost advantage can be put into higher quality and higher dealer margins.&#8221;<\/p>\n<div id=\"module-position-SIuKa6CsomY\" class=\"story-asset image-asset\">\n<aside class=\"wide single-photo\"><div align=\"left\"><img decoding=\"async\" src=\"https:\/\/www.gannett-cdn.com\/presto\/2019\/09\/25\/PDTN\/40f6105f-526a-4e4a-8727-5e5dec612b31-marysville_courthouse.JPG?width=540&amp;height=&amp;fit=bounds&amp;auto=webp\" alt=\"Honda has transformed the town of Marysville, Ohio, and Union and Logan counties, north of Columbus. A Honda Pilot  sits in front of the historic Union County Courthouse.\" width=\"540\" data-mycapture-src=\"https:\/\/www.gannett-cdn.com\/presto\/2019\/09\/25\/PDTN\/40f6105f-526a-4e4a-8727-5e5dec612b31-marysville_courthouse.JPG\" data-mycapture-sm-src=\"https:\/\/www.gannett-cdn.com\/presto\/2019\/09\/25\/PDTN\/40f6105f-526a-4e4a-8727-5e5dec612b31-marysville_courthouse.JPG?width=500&amp;height=281\" \/>Honda has transformed the town of Marysville, Ohio, and Union and Logan counties, north of Columbus. A Honda Pilot sits in front of the historic Union County Courthouse.\u00a0<span class=\"credit\">(Photo: Henry Payne, The Detroit News)<\/span><\/p>\n<\/div><\/aside>\n<div class=\"clearfix\"><\/div>\n<\/div>\n<p class=\"p-text\">The Georgia-built,\u00a0$40,000 three-row Kia Telluride SUV, for example,\u00a0is marketed at $5,000 less than a comparable Ford Explorer built in Chicago.<\/p>\n<p class=\"p-text\">Credit Suisse&#8217;s Dan Levy estimates the strike could cost GM more than $50 million per day, but industry watchers say the GM\/UAW negotiations are crucial to the long-term survival of the Detroit Three automakers if they are to stem the relentless take of market share from foreign transplants.<\/p>\n<p class=\"p-text\">\u201cGM and the UAW have to figure out which century they are in,\u201d Anderson said. \u201cSince the bankruptcy, GM has made itself a 21st-century company talking publicly about competitive wages and closing plants to remain profitable. But the UAW and their political supporters are still using rhetoric right out of 1979. It\u2019s not clear that they understand that the game has changed.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Honda workers &#8211; called &#8220;associates&#8221; &#8211; emerge from the Honda Marysville Plant at the end of the 6:30 a.m.-3 p.m. shift. Marysville&#8217;s non-union plants haven&#8217;t had a work stoppage in 40 years.\u00a0(Photo: Henry Payne, The Detroit News) Marysville, Ohio\u00a0\u2014 While the United Auto Workers strike against\u00a0General Motors Co. plants stretches\u00a0on, it&#8217;s been\u00a0business as usual here [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"_links":{"self":[{"href":"https:\/\/henrypayne.com\/index.php\/wp-json\/wp\/v2\/posts\/24260"}],"collection":[{"href":"https:\/\/henrypayne.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/henrypayne.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/henrypayne.com\/index.php\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/henrypayne.com\/index.php\/wp-json\/wp\/v2\/comments?post=24260"}],"version-history":[{"count":0,"href":"https:\/\/henrypayne.com\/index.php\/wp-json\/wp\/v2\/posts\/24260\/revisions"}],"wp:attachment":[{"href":"https:\/\/henrypayne.com\/index.php\/wp-json\/wp\/v2\/media?parent=24260"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/henrypayne.com\/index.php\/wp-json\/wp\/v2\/categories?post=24260"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/henrypayne.com\/index.php\/wp-json\/wp\/v2\/tags?post=24260"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}