Mercedes builds some of the most expensive SUVs on the planet at its Vance, Alabama plant. Six thousand workers, two-thirds of production exported to over 135 markets through the port of Mobile. It’s a massive operation. And it’s the only Mercedes facility in the entire global production network without union representation.
The company just reached a settlement with the National Labor Relations Board over alleged anti-union conduct during the UAW’s 2024 organizing campaign. Under the agreement, Mercedes must distribute a written notice to employees stating it will not threaten to close the plant, will not threaten to relocate to a non-union site, will not threaten to cut benefits, and will not illegally surveil or interrogate workers suspected of union activity. Mercedes, for its part, was quick to clarify it admitted no wrongdoing whatsoever. It simply agreed not to do any of those things again.
The backdrop is the May 2024 vote, when workers rejected UAW representation 2,642 to 2,045. The UAW immediately contested the result, alleging that Mercedes management had run a systematic intimidation campaign. Mandatory anti-union meetings, retaliation against individual supporters, and the termination of a pro-union worker on what the union called fabricated grounds. A separate NLRB petition to overturn the election result entirely is still pending.
The UAW pushed back hard on the settlement terms too, arguing that management should be required to read the workers’ rights notice aloud to employees rather than just posting it online where it could quietly disappear into a digital void. The NLRB’s general counsel Crystal Carey shut that request down, reserving oral readings for only the most severe labor violations. The agency approved the deal anyway, over the union’s objections. So Mercedes gets to walk away with a notice on a bulletin board.
Except there’s a second front, and this one has teeth. The UAW has also filed a complaint under Germany’s Supply Chain Due Diligence Act, which requires German companies to ensure labor rights are respected across their global operations. Germany’s federal authority BAFA has launched a formal investigation. A ruling against Mercedes could mean fines of up to 2% of global revenue.
This is where Stuttgart starts paying attention. Sticking a notice on a breakroom wall in Alabama is one thing. Facing nine-figure penalties and reputational damage at the headquarters level is something else entirely. The Vance plant remains the only union-free facility in the Mercedes global network, and Berlin is now watching what happens in Alabama more closely than ever.
