Subject: Mercedes-Benz Union Vote In Alabama: What’s At Stake: LRI INK

May 16, 2024

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Mercedes-Benz Union Vote In Alabama: What’s At Stake

by Michael VanDervort

This week, over 5,000 employees at the Mercedes-Benz plants in Vance and Woodstock, Alabama, are making a big decision that’s got the local business community watching closely. They’re voting on whether to join the United Auto Workers (UAW), and this comes right after a significant union win at the Volkswagen plant in Chattanooga, Tennessee. For businesses in Alabama and beyond, this election is more than just a workplace matter; it’s a potential game-changer for the regional economy.


Why Worry?

If Mercedes-Benz workers decide to unionize, this would be a huge shakeup in the local economy, including fears that a UAW win could make Alabama less attractive to big companies looking for a home.


Local politicians have also reacted strongly. They've been vocal about their concerns, fearing that unionization could hurt Alabama’s reputation as a business-friendly state.  Alabama Governor Kay Ivey has even gone as far as to describe the UAW as a threat from Detroit that has no interest in seeing the people of Alabama succeed; our OEMs succeed, and in turn, the state to succeed like we are now…”, worrying that this could be the start of a trend that might discourage future investments. She also signed a law this week requiring secret ballot elections in union campaigns for any businesses that receive incentives to do business in the state.


Elections of This Size are Rare

Elections involving more than five thousand eligible voters only happen once or twice a decade. The NLRB has only conducted seven elections of this size since 1999, with unions winning five. 

Notably, this will be the third election of this size in the last three years, splitting a win and a loss at two Amazon locations in 2022.

A Broader Economic Impact

This isn’t just a local issue—it has implications for the whole Southern U.S. If Mercedes workers vote to unionize, it could inspire workers at other non-union plants to do the same. All eyes will be watching the outcome of this vote, which ends on Friday, May 17.

What Do Employees Want Unions To Achieve On Their Behalf? It’s Complicated

by Kimberly Ricci

The reasons that workers choose third-party representation are highly nuanced. Still, salts and other activists convince some employees that unions can better serve their interests than their employers.

 

Unions today leave no industry unturned while aggressively organizing by making bold promises. Employees are often disappointed when these promises go unfulfilled when the reality of collective bargaining sets in.

 

It may seem like Big Labor is riding some momentum right now. Yet once workers grow acquainted with the reality of union representation, like Teamsters chief Sean O’Brien power-walking away from a member calling out his two-faced ways, perhaps we will see fewer petitions for union votes. 

 

That day is not today, but until then, much value can be found in observing what these workers are asking unions to do for them:


  • Mercedes-Benz employees in Alabama: 5000+ workers will vote from May 13-17 on whether to join the UAW. The union is telling workers to expect better work-life balance, a more consistent work schedule, significant raises, an end to the two-tiered wage system, and better health-care benefits. It will be interesting to see if Mercedes workers will buy these promises.

 The symbolic nature of this election is enormous to the UAW, more so even than the UAW’s recent victory at the Volkswagen plant in Chattanooga, Tennessee. There is a lot at stake here, which we covered yesterday. Fain badly wants this jewel in his tainted crown. Now, we wait for the Friday vote count.


  • Starbucks and the mass negotiations with 400 stores: The coffeehouse giant recently began negotiating with 425+ stores in a group session, which 150 lottery-selected barista representatives attended, intending to achieve a framework for individual cafe bargaining. Baristas have asked Workers United to secure a higher base pay of $20 per hour, annual 5% raises and COLA boosts, more generous 401(k) plans, full-time status at 32+ hours, and “100% employer-paid” healthcare premiums with “co-pays capped at $10.”

If that sounds like a lot, the union website has even more information about workers desiring improved safety protocols, transgender health care, and company support of social justice causes. Workers United has been breathlessly providing updates, and mass negotiations will resume in late May.

 

Then there’s Boeing, which is in contract renewal negotiations for Puget Sound region workers represented by two unions:


  • International Association of Machinists and Aerospace Workers (IAM): The contract expires September 12, and the union and company are bargaining for the first time since 2008, when workers went on strike for 58 days. This time, 33,200 workers are asking the union to secure 40% raises, better health benefits, less mandatory overtime, restoration of pension plans, and the promise that Puget Sound workers will build the next Boeing plane.

  • International Association of Fire Fighters: Negotiations have collapsed after the union continued to demand wage increases of $21,000 annually on top of the group’s average salary of $91,000. The company has locked out the firefighters for the time being.

These unions could very well strong-arm companies into financially unsustainable union contracts that could cause considerable job losses. At that point, UAW President Shawn Fain and other union presidents might be too busy rubbing rock-star elbows to care.

The Apple Falls From The Union Tree, But Not Nearly Far Enough

by Kimberly Ricci

In the retail realm, the “next Starbucks” hasn’t really come along for unions as they hoped, although organized labor is still attempting to take a bite out of Apple. That effort has been ongoing since at least 2022 – ever since we heard about workers secretly organizing using Android devices – yet only two out of 271 Apple retail stores have unionized thus far. Still, multiple unions are circling the tech giant, and a failed vote slowed one of them down this month.


To clarify a bit on those two organized stores: Apple workers in Towson, Maryland, unionized with the International Association of Machinists and Aerospace Workers’ retail leg (the Coalition of Organized Retail Employees, or IAM CORE), and workers in Oklahoma joined the Communications Workers of America (CWA). Several petitions for union votes at other stores have been withdrawn over the past few years.


Neither of the above unions has secured a first contract with the company, but this month, friction at both unionized stores made headlines. As mentioned above, movement occurred in Apple’s favor at another store:

  • Apple agreed to settle an NLRB case involving ULP charges over sick leave tied to COVID-19 at the OKC store. In doing so, the company agreed to provide identical sick pay benefits to union and non-union workers and to compensate workers who contracted the virus over the past six months but didn’t receive sick pay.

  • The CWA tried to unionize a third Apple retail store in New Jersey, but workers voted against joining the union. The CWA has blamed the result on what they claim is Apple’s illegal behavior, including alleged retaliation against an activist. As of now, the union has not formally protested the vote with the NLRB.

 The NLRB is still sorting through a few dozen other ULP charges against Apple, which entirely denies the accusations against the company. A few of these developments: 

  • This month, the NLRB ruled that the company illegally interrogated workers at the Apple store in NYC’s World Trade Center. 

  • The NLRB dismissed CWA claims that the company fired five workers for organizing at a Kansas City, Missouri retail store. Apple maintains that the workers were terminated over attendance issues, but the Board found “that the evidence was insufficient to show” otherwise. 

  • Pending charges include an allegation that Apple fired an employee for “engaging in protected concerted activity” at its (non-retail) headquarters in Cupertino, California.

Altogether, Apple is certainly plagued with headaches and a polarized case of whiplash from union activity, but their situation isn’t nearly as chaotic as what has been brewing at Starbucks.

Pronoia | Approachability Minute

by Phil Wilson

Have you heard of “pronoia”? It’s the opposite of paranoia!


Kevin Kelly’s book Excellent Advice For Living introduces this uplifting idea: believe that the universe is conspiring for great things to happen to you.


Embrace pronoia and expect fantastic outcomes for yourself and your team.

Discover how this positive mindset, combined with the Pygmalion effect, can make amazing things come true! Join us for this week’s approachability minute and experience a little more pronoia in your day.

Stories You May Have Missed:


Walmart Illegally Issued Gag Order to Worker, NLRB Judge Rules 

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$30K for pizza? No wonder nearly one-third of workers reject SEIU HCII union

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Teamsters and Technology: Developing Labor Issues for Technology Industry Employers

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UAW Files Complaint Against Harvard for Punishing Student Workers in Gaza Protests

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UAW and Southern auto jobs: Why it matters, even if you don't own a car 

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About Labor Relations INK

Labor Relations INK is published weekly and is edited by Labor Relations Institute, Inc. Feel free to pass this newsletter on to anyone you think might enjoy it. New subscribers can sign up by visiting here.


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Contributing editors for this issue: Greg Kittinger, Michael VanDervort, and Kimberly Ricci.


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About Labor Relations Institute

LRI exists to help our clients thrive and become extraordinary workplaces. We improve the lives of working people by strengthening relationships with their leaders and each other. For over 41 years, LRI has led the labor and employee relations industry, driven by our core values and our proven process, the LRI Way.

 

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