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

Trendingnow

1

As Big Tech showers employees with perks to win the talent war, Nvidia built a nearly $5 trillion company by making people pay for their own lunch

2

MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year

3

The Supreme Court's birthright citizenship ruling hands the U.S. economy a $7.7 trillion win

1

As Big Tech showers employees with perks to win the talent war, Nvidia built a nearly $5 trillion company by making people pay for their own lunch

2

MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year

3

The Supreme Court's birthright citizenship ruling hands the U.S. economy a $7.7 trillion win

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

Current refi mortgage rates report for July 2, 2026
Personal FinanceReal Estate
Current refi mortgage rates report for July 2, 2026
By Glen Luke FlanaganJuly 2, 2026
12 minutes ago
Mortgage rates today, July 2, 2026
Personal Financemortgages
Mortgage rates today, July 2, 2026
By Glen Luke FlanaganJuly 2, 2026
12 minutes ago
Current ARM mortgage rates report for July 2, 2026
Personal FinanceReal Estate
Current ARM mortgage rates report for July 2, 2026
By Glen Luke FlanaganJuly 2, 2026
12 minutes ago
hegseth
Startups & VentureVenture Capital
The defense tech boom has become a bubble—or it will be soon
By Allie GarfinkleJuly 2, 2026
13 minutes ago
Emily Blunt is worth $80 million and just pocketed $15 million for her latest film—but she once wanted to be a Spanish translator for the UN
SuccessCareers
Emily Blunt is worth $80 million and just pocketed $15 million for her latest film—but she once wanted to be a Spanish translator for the UN
By Orianna Rosa RoyleJuly 2, 2026
15 minutes ago
Trump’s 927-page disclosure is just a normal Tuesday for direct indexing and crypto wealth managers
InvestingDonald Trump
Trump’s 927-page disclosure is just a normal Tuesday for direct indexing and crypto wealth managers
By Catherina GioinoJuly 1, 2026
9 hours ago

Most Popular

As Big Tech showers employees with perks to win the talent war, Nvidia built a nearly $5 trillion company by making people pay for their own lunch
Big Tech
As Big Tech showers employees with perks to win the talent war, Nvidia built a nearly $5 trillion company by making people pay for their own lunch
By Marco Quiroz-GutierrezJuly 1, 2026
1 day ago
MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year
Success
MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year
By Sydney LakeJune 25, 2026
7 days ago
The Supreme Court's birthright citizenship ruling hands the U.S. economy a $7.7 trillion win
Newsletters
The Supreme Court's birthright citizenship ruling hands the U.S. economy a $7.7 trillion win
By Diane BradyJuly 1, 2026
22 hours ago
Current price of oil as of July 1, 2026
Personal Finance
Current price of oil as of July 1, 2026
By Joseph HostetlerJuly 1, 2026
19 hours ago
Philanthropy leader at Warren Buffett and Bill Gates’ Giving Pledge says children of billionaires are pushing them to give their wealth away faster
Success
Philanthropy leader at Warren Buffett and Bill Gates’ Giving Pledge says children of billionaires are pushing them to give their wealth away faster
By Preston ForeJune 27, 2026
5 days ago
Elon Musk on MacKenzie Scott giving away $26 billion of her fortune: 'Sadly,' it makes the world a worse place
Success
Elon Musk on MacKenzie Scott giving away $26 billion of her fortune: 'Sadly,' it makes the world a worse place
By Sydney LakeJune 29, 2026
3 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.