5,000 auto workers at a Mercedes (MBGAF, MBGYY) plant in Alabama cast ballots to unionize, with results expected slow this afternoon. A “yes” vote will ensure the UAW continues to make progress in unionizing foreign automakers, while a “no” vote will make it increasingly complex to mobilize workers at Toyota plants (TM) Troy, Missouri and Hyundai plant (OTCPK:HYMTF) employees in Montgomery, Alabama. Unlike the historic vote to establish a trade union at Volkswagen (OTCPK:VWAGY) Plant in Chattanooga, Tenn., the union faced a much bigger challenge at Mercedes (MBGAF, MBGYY).
Automakers like Mercedes (MBGAF, MBGYY), Volkswagen (OTCPK:VWAGY) and Hyundai (OTCPK:HYMTF) have centralized their U.S. production in the South to take advantage of budget-friendly labor in right-to-work states like Georgia, Alabama and North. Karolina. Until recently, the likelihood of the UAW gaining a foothold in the South seemed unlikely, even after gaining it this fall. concessions from the Big Three from Detroit. Although the union secured higher wages and more generous pension benefits, Ford (F), General Motors (GM) and Stellantis (STLA) subsequently cut jobs to compensate for higher labor costs and slowing demand for electric vehicles.
The decline in trade union membership is also driven by a decline in manufacturing jobs and a tight labor market. This contributed to union wages rising more slowly than their non-union counterparts. According to Reuters, weekly wages for non-union workers have increased by 22.2% since 2019, while union wages are only 15.3% higher. While there are additional factors that influence these figures, such as “wage shifting,” whereby non-union workers enjoy higher wages given to union workers, the benefits of joining a union have dimmed over the years.
To keep the union at bay, Mercedes (MBGAF, MBGYY) mounted a powerful campaign, eliminating its two-tier wage system, which paid novel hires much less, and pledging to involve workers in wage negotiations. According to the letter obtained by The Huffington Post, Mercedes-Benz US International CEO Federico Kochlowski wrote: “While I respect everyone’s right to take a stance on this matter, I prefer that we work together on our future, with no one else between us.”
