Unions: Hands across the Atlantic

Mercedes in Alabama faces a UAW poll soon, following the UAW's success at VW in Chattanooga. The EU Commission is advising carmakers to uphold European values and standards in their global operations.

Why it matters: The UAW is using the German Supply Chain Act to pressure Mercedes not to engage in anti-UAW behavior. This tactic aligns with EU unions' push for the Corporate Sustainability Due Diligence Directive.

What's next: More European-based companies may face pressure from unions in non-EU countries to neutrally support organizing campaigns.

The bottom line: The UAW's action sets a precedent for unions' use of legislation to influence labor relations worldwide.

ADDITIONAL INFORMATION:

Financial Times news report

The FT piece also notes the role of the European Commission in the matter, saying:

European Commission officials say they have quietly been reminding European carmakers about the social partnership model they are supposed to embody. “In addition to complying with local laws, we obviously expect EU companies to uphold European values and standards in their operations abroad,” a commission official told me. 

“The commission has strong co-operation on labour issues with the US. Our commitment includes ensuring workers are shielded from anti-union discrimination and any interference in unionisation efforts.”