“You load 16 tons; what do ya get? Another day older and deeper in debt.” – Merle Travis

Alabama’s Yellowhammer State nickname is most definitely about the bird and not the yellow hammer and sickle of the working class you might remember from the Soviet flag.

The state government’s stance about unions is shared throughout much of the South as many Southern states proudly promote their anti-union bona fides in order to attract manufacturing industries, including automotive producers.

Since the mid-1990s, the automotive industry has made a major move of their manufacturing plants to Southern states to avoid the hassle of negotiating with unions common in other locations.

In Alabama this includes companies such as Mercedes-Benz, Honda, Hyundai, Toyota and Mazda. Even plants not far from the Alabama state line – such as Kia in West Point, Ga., and Volkswagen in Chattanooga, Tenn. – employ a fair number of Alabamians.

Speaking of Volkswagen, the employees of the Chattanooga plant made a decision last week that has caused industrial interests in the South to stand up and take notice. In what appears to be a first for the modern, Southern automotive industry, an entire automotive plant has voted to join a union. The plant’s employees will be represented by the United Auto Workers.

UAW appears to have its sights set on the Mercedes-Benz plant outside Tuscaloosa next. AL.com reported an employee vote by secret ballot will take place in mid-May to determine if that plant will unionize, as well.

If a simple majority of workers who participate in the vote choose to join the UAW, the Mercedes-Benz plant will be the second automotive plant unionized in a month’s time – a stunning development after decades of attempts by the UAW to make inroads in the South.

The heightened tension around the issue of labor unions has increased attention around senate bill 231 which otherwise would appear to be rather straightforward.

The bill incentivizes any business or corporation whose employees are interested in joining or forming a labor union to force a vote by secret ballot to establish a union.

Why is that important? There is an option for a company to recognize its employees’ desire to collectively bargain with the company without an official vote.

As a union attempts to organize at a particular workplace, union representatives will ask employees to sign a union-authorization card which indicates those employees are interested in forming a union, though not necessarily committing them to vote for a union should there be an election.

If the union is able to get over half of the employees to sign a card within a year’s time, the union can present the cards to company management and ask management immediately to recognize the union and its power to bargain on behalf of all employees.

The company can voluntarily accept the cards as evidence and recognize the union, or it can ask the National Labor Relations Board to conduct an election where employees can vote for or against the union privately using secret ballots.

Senate bill 231 removes the voluntary acceptance option for Alabama companies if those companies would also like to be eligible for some forms of tax breaks from the state.

Functionally, this bill does not do a whole lot. Even if a union is able to present company leadership with union-authorization cards from a large majority of the company’s employees, it makes sense for the company to require a vote by secret ballot in case some employees may vote differently with a secret ballot than they would signing a card in front of one or more witnesses.

Additionally, it provides the company more time to campaign against union formation before the vote takes place.

The main purpose of the bill is to send a political message that Alabama wants to limit unions from growing and spreading within the state. Republican governors in six Southern states, including Gov. Kay Ivey, released a public statement last week saying unionization will lead to a loss of jobs and accusing the UAW of being more focused on getting President Joe Biden reelected than the workers they represent.

Biden has openly courted union support throughout his last campaign and his time in office. In an official statement, Biden applauded the Volkswagen vote and responded to the governors’ letter by saying these governors were attempting to undermine the vote of the workers. Senate bill 231 does little in terms of government but does a lot in terms of political messaging. I tend to look at these types of bills as unnecessary. This bill does not hold much consequence for business or unions, practically speaking. If Mercedes-Benz comes close to unionizing, look for bills with some teeth in next year’s legislative session.