The United Auto Workers (UAW) union is pushing for a new election at the Mercedes-Benz (OTC:MBGAF) (OTC:MBGYY) plant in Alabama, following its recent defeat in a unionization vote.

What Happened: The UAW has filed a petition with the National Labor Relations Board (NLRB) for a fresh election at the Mercedes-Benz plant in Alabama, Automotive News reported.

The union alleges that Mercedes-Benz engaged in unfair labor practices, including the dismissal of pro-union workers and conducting anti-union meetings, which influenced the outcome of the initial vote.

Despite the UAW's efforts, approximately 56% of the 5,000 workers at the Vance, Alabama plant and the adjacent battery factory voted against unionization.

Mercedes-Benz, however, maintains that it adhered to the NLRB's guidelines during the election process and will continue to do so as the situation unfolds. The UAW contends that Mercedes-Benz's actions prevented a free choice by employees, justifying the need for a new election.

Why It Matters: The UAW's defeat in the Alabama Mercedes-Benz plant is a blow to the union's efforts to expand its reach in the southern United States.

The UAW had been riding high on the heels of a significant win at a Volkswagen plant in Tennessee. The setback at the Alabama plant could have broader implications for the UAW's strategy in the region.

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This story was generated using Benzinga Neuro and edited by Ramakrishnan M