Alabama Governor Kay Ivey made an announcement on Monday that she has signed a bill into law. This law holds the potential to revoke economic incentives from companies that choose to voluntarily recognize labor unions, starting from next year.
The legislation, SB231, does not have any effect on the ongoing proceedings east of Tuscaloosa this week. At the Mercedes-Benz plant, thousands of employees will be making the decision on whether they would like to be represented by the United Auto Workers (UAW).
During a chamber of commerce function in Huntsville, Alabama, Governor Ivey made it clear that Alabama is not Michigan. She emphasized that places like Huntsville and Tuscaloosa are not comparable to Detroit, and that it is important for Alabama’s values to shape the future of the state, rather than adopting Detroit’s values.
On the first day of voting in a historic election at the Vance factory, Ivey made her remarks. The UAW has launched a $40 million campaign to organize foreign-owned assembly plants in the South, and this unionization effort is part of that initiative. Additionally, there is an ongoing union drive at the Hyundai plant in Montgomery.
After achieving significant victories in November, when the UAW successfully negotiated contracts with General Motors, Ford, and Stellantis, the union has set its sights on 13 non-union automakers, including the Mercedes-Benz plant in Vance. The UAW’s recent successes, which resulted in improved pay and working conditions, have bolstered their confidence in taking on these additional companies.
According to federal law, workers have the right to request unionization when 30% of employees at a particular workplace sign union authorization cards. The UAW, for instance, calls for elections once it has gained 70% support for union representation at a specific workplace.
Withholding incentives
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Governor Ivey approved SB231 on Friday. This recently passed legislation in the Alabama Legislature allows the state to withhold economic incentives from companies that voluntarily recognize a union or fail to conduct a secret ballot during an election.
Tennessee and Georgia have also implemented similar laws.
From January 1, 2025 onwards, economic incentives will be withdrawn if a company willingly accepts a union, as per the new law.
Mercedes-Benz is actively opposing the unionizing effort in Alabama, with reports indicating that the company’s efforts are even stronger than they were in Chattanooga, Tenn., where a similar vote took place last month. In contrast, workers at a Volkswagen plant in Chattanooga recently voted overwhelmingly in favor of joining the UAW, with 73% supporting the move. This marked a significant milestone, as it was the first time since the 1940s that workers at a southern auto plant had voted to join a union after previous unsuccessful attempts dating back to 2014.
The National Labor Relations Board (NLRB) oversees the secret ballot election process for unionization. This process is used when companies do not voluntarily recognize unionizing efforts. It should be noted that the NLRB is not involved in cases of voluntary unionization, which have actually seen a rise in recent years and are supported by the company.
A spokesperson from Mercedes-Benz declined to comment on the new Alabama law. Back in 1993, the company received a $253 million economic incentive package from the state as a way to attract the plant to Alabama.
According to a spokesperson from Mercedes-Benz, they fully respect the decision of their team members regarding unionization. They are eager to be a part of the election process to ensure that every team member has the opportunity to cast their secret-ballot vote. They also emphasize the importance of providing all the necessary information to make an informed choice.
The UAW chose not to provide a comment.
Harmless or undermining unions?
During a recent Alabama House floor debate, Republicans described SB231 as “harmless” while emphasizing its importance in preventing worker intimidation during pro-union campaigns.
According to Rep. Scott Stadthagen, R-Hartselle, SB231 is not intended to prevent unionization, but rather to safeguard individuals such as single mothers working in factories who might feel intimidated by men pushing for unionization.
Democratic lawmakers have expressed their concerns regarding the legislation, stating that it reflects the ongoing efforts of Alabama Republicans to weaken the process of unionization.
Alabama, like 26 other states in the US, is considered a “right-to-work” state. This means that employees in Alabama have the freedom to choose whether or not to join a labor union. In 2016, the state solidified its stance on unions by passing a constitutional amendment, which ensures that workers in Alabama cannot be compelled to join a labor union or pay union dues, even if their employer is unionized.
Rep. Curtis Travis, a Democrat from Tuscaloosa, expressed his concern about the potential involvement of the National Labor Relations Board in all elections. He emphasized that this issue was troubling to him.
Ivey emphasized that SB231 aims to safeguard Alabama jobs and guarantee the counting of every vote.
Alabama Governor Kay Ivey expressed her determination to protect the jobs and well-being of Alabamians in the face of the threat from Detroit. She emphasized that this threat will not hinder the progress, hope, and prosperity of the people of Alabama.
Alabama’s union membership has been on the rise, although it still falls behind the national average. The state saw an increase in union members last year, reaching 156,000, which accounts for 7.5% of the workforce. This is a significant improvement compared to the historic low of 5.9% in 2021 and 7.2% in 2022. However, the national average stands at 10%. It’s worth noting that eleven other states have union membership rates below 5%, with South Carolina having the lowest participation rate at 2.3%.
In 2021, there was a significant unionization effort at an Alabama manufacturing plant. The Amazon warehouse in Bessemer saw thousands of hourly workers who participated in a secret, mail-in election. Ultimately, the majority of workers voted against unionizing, with nearly a two-to-one ratio.
The UAW vote is anticipated to continue until Friday, with the announcement of the vote totals also scheduled for the same day.
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