This week, over 5,000 employees at the Mercedes-Benz plants in Vance and Woodstock, Alabama, are making a big decision that’s got the local business community watching closely. They’re voting on whether to join the United Auto Workers (UAW), and this comes right after a significant union win at the Volkswagen plant in Chattanooga, Tennessee. For businesses in Alabama and beyond, this election is more than just a workplace matter; it’s a potential game-changer for the regional economy.
Why Worry?
If Mercedes-Benz workers decide to unionize, this would be a huge shakeup in the local economy, including fears that a UAW win could make Alabama less attractive to big companies looking for a home.
Local politicians have reacted strongly. They’ve been vocal about their concerns, fearing that unionization could hurt Alabama’s reputation as a business-friendly state. Alabama Governor Kay Ivey has even gone as far as to describe the UAW as a “threat from Detroit that has no interest in seeing the people of Alabama succeed; our OEMs succeed, and in turn, the state to succeed like we are now…”, worrying that this could be the start of a trend that might discourage future investments. She also signed a law this week requiring secret ballot elections in union campaigns for any businesses that receive incentives to do business in the state.
Elections of This Size are Rare
Elections involving more than five thousand eligible voters only happen once or twice a decade. The NLRB has only conducted seven elections of this size since 1999, with unions winning five.
Notably, this will be the third election of this size in the last three years, splitting a win and a loss at two Amazon locations in 2022.
Source: LRIRightnow
A Broader Economic Impact
This isn’t just a local issue—it has implications for the whole Southern U.S. If Mercedes workers vote to unionize, it could inspire workers at other non-union plants to do the same. All eyes will be watching the outcome of this vote, which ends on Friday, May 17.
