From SCDigest's On-Target E-Magazine
- Nov. 19, 2013 -
Supply Chain News: German Workers Throw Weight Behind Unionizing US Auto Factories
Lower Cost US Factories Threat to Jobs Back Home; UAW Loves the Idea, but will the Workers Here Agree?
SCDigest Editorial Staff
While the South remains solid in terms of maintaining non-union plants in the auto sector in terms of foreign manufacturers operating factories in the US, another force has been added to the mix - pressure from German workers and unions to organize US labor.
SCDigest reported a few weeks ago on the new tactics the United Auto Workers union is taking to organize a Nissan plant in Mississippi. tactics which range from picketing Nissan dealerships in Brazil as the company prepares to co-sponsor the 2016 Olympics in Rio de Janeiro to training US college students on distributing pro-labor flyers. The strategy is to put external pressure on the company to accept a union, versus the usual approach of trying to win over the hearts and minds of workers and then lead a successful unionization vote.(See United Autoworkers Last Stand at Mississippi Nissan Factory an Inflection Point in Union Fate.)
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US auto workers received about $37per hour in wages and benefits on average last year, compared with about $59 in Germany. |
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Now, the US factories of multi-nationals are facing pressure from another source - their own unions back home.
As we previously reported, the new Volkswagen factory near Chattanooga, TN is being pushed hard by the powerful IG Metall union in Germany to recognize a union there without even conducting a vote. The Chattanooga factory is the only one of Volkswagen's 62 plants worldwide that isn't unionized.
Volkswagen has recently said it would cooperate with the UAW to form a workers council at the facility. Such councils, common in Germany, usually include blue-collar and white-collar employees. They may or may not be legal in the US without a union.
Now, Daimler is receiving similar pressure from its union relative to the Mercedes plant in Vance, Alabama.
The issue is more than just one of working to help their potential union brethren in the US - the German unions perceive the non-union plants offshore as potentially a threat to their own jobs and wages - and rightly so.
"As Mercedes-Benz decides where to build future vehicles, German workers
fear high-cost, union plants in Germany will be bypassed in favor of
Vance, which is one of the newest and most cost-competitive
Daimler plants in the world due to the weak dollar and non-union
workforce," the Wall Street Journal notes.
Helmut Lense,
a former labor representative on Daimler's supervisory board, the equivalent of a U.S. board of directors, adds that "When there is even one plant with no union, the company can do whatever it wants."
The UAW has smartly picked up on this opportunity, and has sent delegations to meet with auto workers in Brazil, Japan, South Africa and South Korea.
South Korea's Hyundai Motor and sister company Kia Motors have seen significant labor strife in recent years in their home country, including one union campaign to eliminate third-shift work and a just ended strike that cost it many millions in lost production, but their US plants remain non-union.
(Manufacturing Article Continued Below)
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