Failed unionization bid at U.S. Mercedes plant gives relief to Hyundai Motor

[Courtesy of Hyundai Motor Co.]

Workers at a Mercedes-Benz plant in Alabama dealt a blow to the United Auto Workers (UAW) on Friday by rejecting the unionization bid in a vote that the UAW had anticipated would strengthen their foothold in the southern United States.

According to the New York Times on Saturday, the vote, which saw 56 percent of the Mercedes-Benz plant workers in Alabama, or 2,642 individuals, opposed union formation. This comes as a setback to the UAW’s efforts to expand its influence following recent successes.

This defeat marks the first major loss for the UAW organizers after a series of victories, including securing double-digit raises for Detroit autoworkers and successfully unionizing a Volkswagen (VW) factory in Chattanooga, Tennessee, last month.

UAW President Shawn Fain acknowledged the setback but remained optimistic.

“While this loss stings, we’ll keep our heads up,” Fain said following the vote.

The New York Times interpreted Fain’s statement as a signal that the UAW might intensify its focus on organizing at Hyundai Motor’s Montgomery plant in Alabama, another significant automotive factory in the state.

The vote’s outcome provides a respite for Hyundai Motor America, which had been apprehensive about the spread of unionization efforts. Hyundai, which has operated its Alabama plant without a union since its establishment in 2005, raised hourly wages for its U.S. production workers by 14 percent last year to preempt potential unionization following the UAW’s unprecedented simultaneous strikes at General Motors, Ford, and Stellantis.

Last year’s strikes resulted in a 25 percent wage increase over four years for workers at the three Detroit-based automakers. Buoyed by these victories, the UAW has been campaigning to unionize workers at 13 non-unionized companies, including Hyundai, Toyota, and Honda, encompassing a workforce of about 150,000.

Had the unionization bid at the Mercedes-Benz plant succeeded, it could have significantly increased pressure on Hyundai and other automakers in the South. For now, Hyundai can breathe a sigh of relief as it continues its non-union operations in the region.