Published on Friday, May 17, 2020
Topline
The United Auto Workers union was rejected by Mercedes-Benz employees in Alabama on Friday. This is a blow to the union, which has been trying to expand into non-union plants in the South since last year, when it signed contracts with Stellantis General Motors Ford.
Mercedes-Benz has a manufacturing facility for SUVs in Vance, Alabama. (Photo by Jeffrey… [+] Greenberg/Universal Images Group via Getty Images
Universal Images Group via Getty Images
Key Facts
According to the National Labor Relations Board, 2,642 Mercedes-Benz workers voted against unionization while 2,045 did so.
The NLRB reported that 51 ballots had been challenged and were not counted.
If the vote had been for unionization, Mercedes would have become the second foreign owned automaker in South America whose employees joined the UAW. This is after Volkswagen’s staff, who voted to unionize about two weeks earlier.
The UAW and Mercedes-Benz may file objections within five working days.
This story is in progress. Updates will be posted.
Get Forbes Breaking News Alerts via Text Message: We are launching text message notifications so that you will always be aware of the most important stories making headlines. Sign up for alerts by texting “Alerts”.
Key Background
The UAW’s rejection is a blow after its successful contract negotiations last year with Chrysler parent Stellantis as well as General Motors and Ford, which resulted in a wage increase, cost of living adjustments, and improved retirement security. The “big 3 Detroit automakers” have been unionized for decades, but the foreign-based Mercedes operates a majority of non-unionized factories in the South. This makes them an obvious target for UAW organizing efforts. UAW won a victory late last month, when Volkswagen workers in Chattanooga voted to unionize. In the vote, 985 workers voted against unionization, while 2,268 voted in favor.
Continue Reading
UAW: Autoworkers at GM, Ford and Stellantis have ratified labor pacts.
VW Workers Vote To Join UAW Certified (Forbes)
Follow me on Twitter and LinkedIn. Send me a tip that is secure.
Source: Forbes