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Mercedes-Benz Workers Vote Down Unionization In UAW Setback

May 18, 2024
in Business
Mercedes-Benz Workers Vote Down Unionization In UAW Setback
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Topline

Mercedes-Benz workers in Alabama rejected union representation by the United Auto Workers on Friday, a setback for the labor union as it tries to expand to non-union factories in the South after ratifying contracts with Stellantis, General Motors and Ford last year.

Mercedes-Benz operates a SUV manufacturing plant in Vance, Alabama. (Photo by: Jeffrey … [+] Greenberg/Universal Images Group via Getty Images)

Universal Images Group via Getty Images

Key Facts

The National Labor Relations Board said 2,642 of the Mercedes-Benz plant workers voted against union representation, while 2,045 voted for it.

Some 51 ballots were challenged and not counted, according to the NLRB, which also noted five void ballots among the 5,075 eligible voters.

A vote for union representation would have made Mercedes the second foreign-owned automaker in the South whose staff joined the UAW, behind employees at Volkswagen, whose vote to unionize was certified about two weeks ago.

The UAW and Mercedes-Benz can file objections to the election within five business days.

This is a developing story. Check back for updates.

Get Forbes Breaking News Text Alerts: We’re launching text message alerts so you’ll always know the biggest stories shaping the day’s headlines. Text “Alerts” to (201) 335-0739 or sign up here.

Key Background

The rejection marks a loss for the UAW following its successful contract negotiations with Chrysler parent Stellantis, General Motors and Ford last year, which established a wage boost, cost-of-living adjustments and improvements in retirement security. Factories run by the “big 3” Detroit-based automakers have long been unionized, but foreign-based companies like Mercedes operate largely non-union factories concentrated in the South, making them a longstanding target for the UAW’s organizing efforts. The UAW secured a win late last month when Volkswagen workers at a plant in Chattanooga, Tennessee, voted to unionize. In that vote, 2,268 workers voted yes, while 985 voted no.

Further Reading

Autoworkers At GM, Ford And Stellantis Ratify Labor Pacts, UAW Says (Forbes)

VW Workers Vote To Join UAW Certified (Forbes)

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Copyright for syndicated content belongs to the linked Source : Forbes – https://www.forbes.com/sites/antoniopequenoiv/2024/05/17/alabama-mercedes-benz-workers-vote-against-unionizing-in-uaw-setback

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