Mercedes-Benz has settled a case with the US National Labor Relations Board (NLRB) over allegations linked to its conduct during a union organising campaign at its Alabama plant.
Under the agreement with the NLRB, the automaker will circulate and follow a notice explaining employees’ rights to organise.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
According to the notice obtained by Bloomberg, the company states: “WE WILL NOT threaten you with the closure and/or relocation of the facility to a non-union location, like Mexico, or anywhere else, if you choose to be represented by a union.”
In an emailed response to Just Auto, a Mercedes-Benz representative said: “Following our Team Members’ decision to reject UAW representation two years ago and the withdrawal or dismissal of the vast majority of the UAW’s accusations, we resolved these matters with the NLRB with no admission of violations, despite the UAW’s objections to the settlement.”
The dispute relates to a 2024 vote at the Alabama facility in which workers declined to join the United Auto Workers (UAW).
The union had argued that the result was affected by unlawful company actions, including retaliation against employees who supported unionisation.
As part of the settlement, Mercedes-Benz agreed to withdraw disciplinary measures imposed on one worker.
The company also committed not to warn employees that they could lose benefits if they choose to unionise.
According to the report, the automaker also agreed it would not unlawfully surveil or question employees about distributing union materials in non-work areas during breaks.
It also agreed not to otherwise interfere with, restrain, or coerce workers as they exercise their organising rights.
NLRB prosecutors approved the settlement despite objections from the UAW, which had requested that Mercedes management be required to read the notice to workers.
In a letter sent to the union’s lawyers last week, an NLRB regional director said such a step was unnecessary.
A separate case brought by the union asking the NLRB to overturn the 2024 election outcome is still under review.
The agreement could also draw additional attention to Mercedes-Benz operations in the US and Germany.
The UAW has called on regulators to ensure the company follows its stated principle of remaining neutral during union organising campaigns.
“We look forward to working directly with our Team Members on measures to ensure we remain an employer of choice and provide a safe and supportive work environment. We want to continue to build on and enhance the success this plant has achieved over almost 30 years to continue providing superior vehicles for the world while also focusing on our people,” the spokesperson added.
