UAW Files Anti-Labor Charges in Germany Against Mercedes

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.

In addition to charges against Mercedes-Benz in Germany, Mercedes-Benz U.S. International (MBUSI) workers have filed multiple charges with the US National Labor Relations Board. Last week, the workers requested an injunction against MBUSI to put an end to the company’s “retaliation against workers for standing up for their rights at work.” (read AutoInformed.com on: Workers File Union Busting Charges Against Mercedes-Benz)

The Alabama plant is operated by MBUSI, a subsidiary of Stuttgart-based Mercedes-Benz Group AG. The latest UAW complaint details how MBUSI has intimidated, threatened and fired Alabama workers in violation of U.S. labor law and International Labor Organization Conventions. The complaint documents several violations of the German act, including:

  • The firing of a union supporter with Stage 4 cancer. The employee had been allowed to have his cellphone with him at work so he could receive updates on the availability of his scarce chemo drug. But a supervisor who has intimidated union supporters claimed there was a zero-tolerance policy on cellphones and had him fired.
  • A January letter from MBUSI CEO Michael Göbel to employees that attempted to chill union activity and violated their freedom of association. The letter was filled with stock phrases used by anti-union consultants designed to stoke fear, uncertainty, and division.
  • A mandatory plant-wide meeting Göbel held in February to discourage workers from unionizing. At this meeting, Göbel told workers “I don’t believe the UAW can help us to be better” and that they “shouldn’t have to pay union dues that generate millions of dollars per year for an organization where you have no transparency where that money is used.”
  • Another mandatory plant-wide meeting in February that featured former University of Alabama football Coach Nick Saban. Before and during the meeting, MBUSI supervisors attempted to stop union supporters from passing out UAW hats.

“MBUSI’s actions not only violate U.S., German and international law, they also violate Mercedes-Benz’s Principles of Social Responsibility and Human Rights.* Those principles state: In the event of organization campaigns, the company and its executives shall remain neutral; the trade unions and the company will ensure that employees can make an independent decision” the UAW said.

*Principles of Social Responsibility and Human Rights – excerpt from page 7 of brochure

Freedom of Association, the Right to Collective Bargaining and the Right to Strike

At Mercedes-Benz Group, we acknowledge the right of our employees to form employees’ representative bodies, to collective bargaining for the regulation of working conditions and their right to strike, depending on applicable law. Founding, joining or being a member of a workers’ union recognized under applicable law shall not be used as a reason for a lack of equal treatment or retaliation. In the event of organization campaigns, the company and its executives shall remain neutral; the trade unions and the company will ensure that employees can make an independent decision.

At Mercedes-Benz Group, we ensure that our employees can openly and regularly exchange views on working conditions with corporate management in unions and workers’ representative bodies in accordance with applicable law. If these Principles are not in accordance with local law, at Mercedes-Benz Group, we will find local solutions that take into account the relevant national legislation and our own guidelines.  

Cooperation with employees and trade unions is on a constructive basis. It is our objective to involve and inform each individual employee as directly as possible. In doing so, a fair balance is sought between the economic interests of the company and the interests of our employees. Our conduct and tone towards employees is characterized by respect and fairness. Even in the event of contentious disputes, the aim remains to maintain sustainable constructive cooperation in the long term.

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