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In a blow to the economic poverty of low wages long promoted by US southern states formed under slavery, the UAW posted an historic and crushing union win at a Volkswagen plant last week when 73% of the workers voted to unionize. It was the last VW operation globally without a union. (AutoInformed: Labor Day – UAW Struggles Are Key to The American Dream; VW Chattanooga UAW Vote Set for April 17-19)
The battle with VW management – a later day version of the Ford Rouge +Battle of the Overpass – included outrageous interference by VW management instead of the neutrality stipulated under US labor laws. The Chattanooga plant has now become the symbol and rallying point of the tough fight for workers’ rights, bringing national or global attention* to the struggles and potential of unionizing in the South. Daimler Truck is next. (AutoInformed: UAW Practice Picketing at Daimler Truck in the US South)
Shawn Fain, president of UAW, was vocal supporting the workers at the Chattanooga plant. Meeting with the workers on the day of the vote, Fain emphasized the wide-ranging implications of their victory for labor. “I had a great time today meeting with Volkswagen workers as they journey on the path to victory of winning justice on the job! Workers in America are fed up with being left behind, and unions are the path to dignity on and off the job! Stand up, UAW VW!” said Fain.
On Tuesday 23 April the UAW filed four separate unfair labor practice charges with the National Labor Relations Board (NLRB) against Daimler Truck, citing violations of workers’ rights and federal labor laws amid ongoing contract negotiations. The agreement, covering more than 7300 workers at plants in North Carolina, Georgia, and Tennessee, expires at midnight this Friday 26 April.
“Daimler Truck thinks it can intimidate us by trampling on our rights. These unfair labor practice charges are a necessary step. It’s time for Daimler Truck to get serious about negotiating a record contract without violating the law, ” said UAW Daimler Truck North America (DTNA) Council President Kenny Dellinger.
The charges filed with the NLRB cite various violations by Daimler Truck, including but not limited to:
- Retaliation Against Union Activities: The UAW asserts that Daimler Truck has engaged in retaliatory actions against workers who have participated in union activities or expressed support for the union.
- Interference with Workers’ Rights: The UAW claims that Daimler Truck has unlawfully interfered with workers’ rights to organize, bargain collectively, and engage in other concerted activities for mutual aid and protection.
- Discrimination Against Union Members: The charges cite discriminatory treatment against workers based on their union membership or activities.
- Failure to Bargain in Good Faith: The UAW contends that Daimler Truck has failed to bargain in good faith with the union regarding wages, benefits, and working conditions.
Daimler Truck workers are asking an agreement that reflects the record profits the company has garnered and includes “the long overdue fair wages and working conditions workers deserve.”
Workers who build Freightliner trucks, Western Star trucks, and Thomas Built Buses are facing declining real wages and job security. Daimler Truck is post record profits and makes large payouts to shareholders. During the past six years, Daimler’s profits have increased by 90% while workers’ buying power has fallen 13%.
In March, Daimler announced record results for 2023 and a healthy outlook for 2024, including:
- Daimler made nearly $6 billion in 2023
- Profits increased 39% compared to 2022
- More than half of those profits were generated in North America
- The company plans to spend $2.1 billion on stock buybacks and intends to increase stock dividends by 46%
After those announcements, Daimler’s stock jumped 18% the next day. In interviews, Daimler CEO Martin Daum has said (boasted?) that:
- The company’s profits are “red hot”
- The “leftover money” belongs to the company’s stockholders
*“Congratulations to the UAW workers at Volkswagen in Chattanooga, from the whole IndustriALL family of 50 million workers. Today you made history by becoming one of the very few unionized auto plant in the southern states. You are a long-awaited and extremely welcome addition to the family. With today’s resounding victory, you have given hope and inspiration to millions all over the world,” said Atle Høie IndustriALL general secretary.
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- +Labor Day – UAW Struggles Are Key to The American Dream
- VW Chattanooga UAW Vote Set for April 17-19
- Chattanooga VW Workers Want UAW Election
- Donald Trump is a Scab – UAW Endorses President Biden
“The immediate response suggests that production costs will rise, potentially resulting in the emergence of a new and expensive product mix aimed at maintaining profitability, aligning with the product trends observed at the D3 factories. However, stepping back to look at the bigger picture, we can see that the dynamics of the automotive business are changing. The workforce landscape is evolving, marked by big gaps identified by the Center for Automotive Research in the electric industry education and training needs. It is a call for private investors and economic developers to redesign the business operating environment. It is time to rethink the changes that will be needed to ensure that the tango of state incentives and private investments will work to retain and attract businesses, and above all, be in unison to train and prepare our workforce for a better tomorrow.”
Editor – Dr. K. Venkatesh Prasad Senior Vice President of Research and Chief Innovation Officer is the at the Center for Automotive Research. CAS is a long-time and respected source of automotive analysis and commentary at AutoInformed, as well as me previous journalism and corporate positions going back for decades. – Ken Zino