• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

After forcing workers back to the office, Goldman Sachs and JPMorgan Chase are now letting their staff work remotely—but only for the World Cup

2

The Pentagon said Iran War costs $29 billion, but the real cost is closer to $200 billion—and counting

3

Current price of oil as of June 23, 2026

1

After forcing workers back to the office, Goldman Sachs and JPMorgan Chase are now letting their staff work remotely—but only for the World Cup

2

The Pentagon said Iran War costs $29 billion, but the real cost is closer to $200 billion—and counting

3

Current price of oil as of June 23, 2026

UAW wants to unionize Mercedes-Benz plant in Alabama

By
Doron Levin
Doron Levin
Down Arrow Button Icon
By
Doron Levin
Doron Levin
Down Arrow Button Icon
October 7, 2014, 11:29 AM ET
Management
contract armin harrisKyle Bean for Fortune
Add Fortune on Google for similar content.

The United Auto Workers union, smarting from a recent defeat trying to organize Volkswagen AG’s factory in Tennessee, has a new target, Mercedes-Benz’s plant in Alabama.

Thus far the UAW’s strategy to organize auto plants in the southern half of the U.S. is struggling. The union also is girding for industry-wide contract talks with Detroit-based automakers this summer, perhaps providing clues as to the direction and militancy of the UAW’s new president.

The UAW has created Local #112 in Tuscaloosa and asked Daimler AG, the German parent of Mercedes-Benz, to recognize it as the bargaining agent for workers, which number about 3,500. Dieter Zetsche, Daimler’s chief executive officer, has said it’s up to workers to decide, which suggests that a vote will be held.

Dennis Williams, who was elected in June as UAW president, told the Wall Street Journal that “what happens here is important to the future of the labor movement.”

Williams, 61, has said that the UAW is intent on bridging the gap between two tiers of auto workers already in the union, older workers who earn on a higher pay scale established before the industry’s downturn, and younger workers hired afterwards at a lower pay scale. So-called “tier two” workers also get less in the way of benefits, notably no defined benefit pension.

Once the current labor contract between the UAW and Ford Motor Co. (F), General Motors Co. (GM) and the new Fiat Chrysler Automobile NV expires, the union will be able to strike for the first time since 2011. The union agreed to a no-strike pledge in return for the government’s bailout of GM and what was then Chrysler Group LLC.

Williams complained in a recent interview in the Detroit News that union workers haven’t had raises; but he also sounded conciliatory notes, saying that the union wouldn’t seek confrontation “unnecessarily.”

No doubt the UAW is mindful that since Michigan passed right-to-work legislation allowing workers to drop out of the union, it’s important to achieve tangible benefits for its members. The union recently approved a 25% increase in union dues in order to replenish its $600 million fund to be used in the event of a strike.

The UAW’s acrimonious history with employers is a big reason why VW, Daimler and other foreign automakers chose to locate in southern states, where union affiliation has been far less popular than in the north. UAW membership has risen slightly of late, but still stands at less than 400,000, compared with a peak of 1.5 million in the 1970s.

Zetsche, like his top-management counterparts at VW and other German automakers, is facing a tricky puzzle in managing a response to the UAW’s bid in Alabama. IG Metall, the German union that represents Daimler and other automakers at home, favors the UAW’s bid and is pushing for company recognition, which would obviate a vote. Union representatives serve on German automakers’ supervisory board.

Michael Brecht, an IG Metall official and Daimler vice chairman, has said it’s “unacceptable” that company workers in Alabama don’t have a union.

But Zetsche also must gauge whether Williams and the UAW of today resemble the UAW that refused to grant health-care concessions to Chrysler in 2006, contributing to Daimler’s bargain basement sale of Chrysler to a private-equity company. Zetsche had previously served as Chrysler’s chief during Daimler’s ownership.

The cliché is that a tiger can’t change its stripes. Williams must disprove that chestnut for his union’s sake as well as for GM, Ford and Fiat Chrysler.

About the Author
By Doron Levin
See full bioRight Arrow Button Icon
Add Fortune on Google for similar content.

Latest in

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in

How Home Depot is rebuilding retailing with AI
NewslettersCIO Intelligence
How Home Depot is rebuilding retailing with AI
By John KellJune 24, 2026
1 hour ago
bob
AIbooks
Robert Wright sees an ‘earthquake’ coming from AI that goes far beyond jobs: ‘cultural, political, personal, family, psychological’
By Nick LichtenbergJune 24, 2026
2 hours ago
Mamdani’s insurgents oust two Democratic congressmen in a sweep that rattles the party
New York City
Mamdani’s insurgents oust two Democratic congressmen in a sweep that rattles the party
By The Associated Press, Steve Peoples and Anthony IzaguirreJune 24, 2026
2 hours ago
Gaza reshaped New York’s Democratic primaries. Now the party has to figure out what that means.
PoliticsNew York
Gaza reshaped New York’s Democratic primaries. Now the party has to figure out what that means.
By The Associated Press, Steve Peoples and Jake OffenhartzJune 24, 2026
2 hours ago
A team of workers sort aluminum cans near large bales of plastics
LawCalifornia
17 red states sue California over ‘onerous’ recycling law: ‘California is not entitled to pronounce nationwide policies’
By The Associated PressJune 24, 2026
2 hours ago
Mamdani’s picks sweep New York City’s congressional primaries, ousting two incumbents
PoliticsNew York
Mamdani’s picks sweep New York City’s congressional primaries, ousting two incumbents
By The Associated PressJune 24, 2026
2 hours ago

Most Popular

After forcing workers back to the office, Goldman Sachs and JPMorgan Chase are now letting their staff work remotely—but only for the World Cup
Success
After forcing workers back to the office, Goldman Sachs and JPMorgan Chase are now letting their staff work remotely—but only for the World Cup
By Orianna Rosa RoyleJune 23, 2026
1 day ago
The Pentagon said Iran War costs $29 billion, but the real cost is closer to $200 billion—and counting
Economy
The Pentagon said Iran War costs $29 billion, but the real cost is closer to $200 billion—and counting
By Jacqueline MunisJune 24, 2026
11 hours ago
Current price of oil as of June 23, 2026
Personal Finance
Current price of oil as of June 23, 2026
By Joseph HostetlerJune 23, 2026
1 day ago
Markets tumble worldwide as Fed resets expectations: $400 billion wiped off SpaceX stock
Banking
Markets tumble worldwide as Fed resets expectations: $400 billion wiped off SpaceX stock
By Jim EdwardsJune 23, 2026
1 day ago
Current price of gold as of June 23, 2026
Personal Finance
Current price of gold as of June 23, 2026
By Danny BakstJune 23, 2026
1 day ago
Texas and Charlotte used to build huge McMansions—now they're copying the California design tricks they once mocked
Real Estate
Texas and Charlotte used to build huge McMansions—now they're copying the California design tricks they once mocked
By Sydney LakeJune 22, 2026
2 days ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.