The UAW filed charges today against Mercedes-Benz Group AG for violating a new German law on global supply chain practices. The law sets standards for global supply chains that German-based firms must follow. It prohibits companies from disregarding workers’ rights to form trade unions. Workers at Mercedes-Benz’s assembly and battery plant in Vance, Alabama are organizing to join the UAW and have faced fierce backlash from company management in the UAW’s view. The UAW’s charges are significant as a test of the act, which took effect on 1 January 2023. It applies to German-headquartered firms with more than 1000 employees. The UAW is the first American union to file charges under the act, also known by its German acronym LkSG.
“Mercedes-Benz’s aggressive anti-union campaign against U.S. autoworkers in Alabama is a clear human rights violation under the German Act on Corporate Due Diligence Obligations in Supply Chains. If found guilty, Mercedes-Benz faces billions in penalties, including significant fines and bans on government contracts,” the UAW said. Every Mercedes-Benz plant in the world is unionized, except the company’s two plants in the United States.
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US Auto Sales Hitting Streak – 20 Months of Growth in March
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US Light Vehicle (LV) sales grew 5.5% year-on-year (YoY) in March to 1.44 million units, according to an analysis just released by the respected GlobalData consultancy.* This means that under the Biden Administration the economy had another month of YoY growth – a streak that now extends to 20 consecutive months. The daily selling rate was estimated at 53,200 units/day in March, compared to 49,900 units/day in February.
“March had a number of potential curveballs, including several OEMs looking to hit targets at the end of their financial year, steep discounting on certain models – particularly Electric Vehicles (EVs) – and pent-up demand from the fleet segment. In the end, sales were decent, but could have been even better. We are continuing to see signs that the segments that are performing well are generally those at the more affordable end of the spectrum, while costlier models are starting to see an easing in demand,” said David Oakley, Manager, Americas Sales Forecasts at GlobalData. Continue reading →