Does the decision by vehicle technicians at Hedin Automotive Mercedes-Benz to vote for strike action mark a turning point, asks Jim Saker, emeritus professor of Loughborough University’s business school and president of the Institute of the Motor Industry.
Usually what happens in three dealerships in a large European wide group does not make column inches in the motoring press.
However, the news that vehicle technicians at Hedin Automotive’s Brooklands, Bromley and Croydon Mercedes-Benz dealerships had voted to take strike action has sparked more than a little interest.
The action is supported by the Unite Union who previously had a presence in the now defunct Mercedes Benz Retail Group.
What makes it newsworthy is the fact that this is unusual both from the point of Union involvement but also that the situation has got to a position where strike action is being proposed.
Most UK vehicle technicians are not in a union, but there are indications that union activity is on the rise in response to industry pay and working conditions. Unite is the leading union for this sector, particularly in dealership environments.
The details of the dispute seem to be in the words of Unite “the company’s refusal to put forward a pay offer for 2025”.
It said Hedin mechanics received a 2% pay rise in 2024, while the average rate of RPI inflation for 2024 was 3.6%. Meanwhile, RPI inflation for April 2025 was 4.5%.
Unite general secretary Sharon Graham said: “Hedin’s workers will not accept yet another real terms pay cut and neither will Unite.’’
The details of the disagreement are not really the issue here, the more interesting element is the union involvement.
The future of the motor industry is unpredictable, on one hand there are forecasts of a shortage of skilled technicians while on the other some are suggesting that with the rationalisation of dealer networks that there is no need to worry.
The one thing that is happening is that with the changing technology and connectivity there will be a continued professionalisation of aftersales.
When I first got involved in the motor industry, I asked a dealer who was responsible for his HR activities and he simply replied ‘my solicitor.’ Most organisations have moved on from that position but there is going to be increased scrutiny of how people are being treated and remunerated.
As mentioned above the long-term demand for technicians is a matter for discussion but when I talk to dealers in some areas the impression given is that there is a real shortage of well qualified people. As a result, there has been a major increase in technician wages far more that of previous levels.
Individuals can join Unite on their personal membership scheme so there will be some interest in the outcome of the Hedin negotiations and whether this creates an appetite for the union to become more involved in our sector especially if technicians remain in short supply.
Author: Professor Jim Saker