Mercedes-Benz, a name synonymous with German engineering and automotive excellence, is currently under fire for alleged labor rights violations at its US plant in Alabama. The United Auto Workers (UAW) union has filed charges against Mercedes-Benz Group AG, leveraging Germany’s new law on global supply chain practices to challenge the company’s anti-union campaign in America. This move brings into sharp focus the question: is Mercedes-Benz German when its global operations appear to contradict the principles of its home nation’s legislation?
The UAW’s complaint, filed under the German Act on Corporate Due Diligence Obligations in Supply Chains (LkSG), marks a significant test for this relatively new law, effective since January 1, 2023. This legislation holds German companies with over 1,000 employees accountable for human rights standards within their global supply chains, explicitly including workers’ rights to organize. The UAW is the first American union to utilize this German law, highlighting the international dimensions of labor disputes and corporate responsibility.
At the heart of the issue is Mercedes-Benz’s plant in Vance, Alabama, operated by Mercedes-Benz U.S. International (MBUSI), a subsidiary of the Stuttgart-headquartered Mercedes-Benz Group AG. Workers at this sprawling facility, which includes assembly and battery production, are seeking to unionize with the UAW. However, they allege facing intense opposition from company management, actions the UAW contends violate both US labor law and international standards, and crucially, the German Supply Chain Act.
The UAW complaint details a series of alleged violations, painting a picture of aggressive anti-union tactics. These documented instances, presented as breaches of the German act, include disturbing allegations:
- The Termination of a Seriously Ill Union Supporter: An employee battling Stage 4 cancer, who had been permitted to keep his phone for critical medical updates, was reportedly fired. A supervisor, identified as previously intimidating union supporters, allegedly cited a zero-tolerance cellphone policy as the reason for dismissal.
- CEO’s Anti-Union Letter: Michael Göbel, CEO of MBUSI, allegedly sent a letter to employees in January designed to discourage unionization. The UAW argues this letter infringed upon workers’ freedom of association, employing common anti-union rhetoric intended to create fear and division.
- Mandatory Anti-Union Meetings Led by the CEO: Göbel held mandatory plant-wide meetings in February where he directly discouraged unionization. He reportedly stated his disbelief in the UAW’s ability to improve the company and questioned the transparency of union dues.
- Nick Saban’s Appearance at a Captive Audience Meeting: Another mandatory meeting in February featured former University of Alabama football coach Nick Saban. Prior to and during this event, supervisors allegedly attempted to prevent union supporters from distributing UAW hats.
Despite what the UAW describes as a concerted anti-union campaign, a majority of MBUSI workers have reportedly signed union cards, demonstrating significant support for unionization. These workers recently rallied alongside UAW President Shawn Fain, underscoring their determination to organize.
Beyond the charges in Germany, MBUSI workers have also filed multiple complaints with the U.S. National Labor Relations Board. They have requested an injunction to halt Mercedes-Benz’s alleged retaliatory actions against employees advocating for their workplace rights.
The UAW argues that MBUSI’s conduct not only violates laws in the US, Germany, and international agreements but also contradicts Mercedes-Benz’s own stated “Principles of Social Responsibility and Human Rights.” These principles commit the company to neutrality during organization campaigns and to ensuring employees can make independent decisions regarding unionization.
It’s noteworthy that every Mercedes-Benz plant globally is unionized, with the exception of its two facilities in the United States. This stark contrast amplifies the questions surrounding Mercedes-Benz’s labor practices in the US and its adherence to its stated global principles.
Mercedes-Benz workers in Alabama are part of a broader national movement of non-union autoworkers seeking to join the UAW, inspired by the UAW’s successful “Stand Up Strike” at the Big Three automakers. Over 10,000 non-union autoworkers across the US have signed union cards recently, with public organizing campaigns underway at Mercedes-Benz, Volkswagen, Hyundai, and Toyota plants. The situation at Mercedes-Benz raises critical questions about whether this iconic German brand, while benefiting from its “Made in Germany” image, is upholding German values of social partnership and worker rights in its international operations. The outcome of the UAW’s charges in Germany and the NLRB complaints in the US will be closely watched as they could set important precedents for international labor rights and corporate accountability.
