Just after VW workers in Chattanooga voted to join the UAW, the Center for Automotive Research (CAR) released a study on what might happen at Mercedes if we vote to go union. The study said, “given the plant’s irreplaceable value for the company, we expect that the potential increase in labor costs would not deter Mercedes-Benz from maintaining its operations in Alabama.”
According to CAR, “As the sole producer of unibody large luxury SUVs for Mercedes-Benz for nearly two decades, Mercedes-Benz Plant Tuscaloosa has established a well-functioning supply chain network in the region, and its products are sold not only in North America but also exported worldwide. Given this vantage position, any plant closure or relocation options for this plant seem remote given current circumstances and market conditions. Additionally, the high end, high-value-added products at this plant allow its workers to receive top tier wages and benefits in the U.S. automotive industry.” (Click here to download the full study.)
Also, soon after the pro-union vote in Chattanooga, VW management put out a statement with the new UAW members saying, “We are jointly committed to a strong and successful future at Volkswagen Chattanooga with the UAW…. Both sides are now focused on collective bargaining and entering negotiations in the spirit of working together to reach a fair agreement and build world-class automobiles together.” Like VW, Mercedes gets along with union workers everywhere else in the world. Plus, Mercedes has invested billions of dollars to expand here in Vance. They’re not going to throw that money away.