UAW Gains Southern Foothold as VW Workers Ratify First-Ever Contract

Despite decades of active campaigns against unions in the state, Fain made it one of the goals of his tenure to secure membership in the southeast, and more than 3,000 VW workers agreed as 96 percent voted in favor of the contract.

“Volkswagen workers have moved yet another mountain,”  said UAW President Shawn Fain in a statement. “From having the courage to stand up and form their union, to having the backbone to authorize a strike and hold out for a contract that honors their worth, VW workers are leading the way for the entire labor movement and non-union autoworkers everywhere. Welcome to the UAW family.”

The new deal secures a  20-percent wage increase over the life of the contract. Workers get a 5 percent bump immediately, then 3 percent each of the next three years with a 6 percent raise in the fourth year. Additionally, workers will receive a $2,550 annual bonus all four years. A new worker starts at $24.57 per hour or just over $51,000 a year, not including overtime or the aforementioned annual bonus.

The new deal also offers healthcare cost reductions, job security guarantees and other benefits. Volkswagen officials, as has been the case throughout the process, acknowledged the result in a short statement.

“Volkswagen team members in Chattanooga today ratified our first collective bargaining agreement with the UAW,” the company said. “This milestone reflects our shared commitment to competitive wages, strong benefits, and the long‑term success of our employees and operations. We look forward to building a strong future together in Chattanooga.”

The year-long contract negotiations began after VW hourly workers agreed by a margin of 3-to-1 to join the UAW in 2024. The process included holding a strike vote last October to nudge the negotiation process along — a hallmark of Fain’s presidency.

Now the union will ramp up its efforts at other transplant automakers, with Nissan’s plants in Mississippi being the next target.

“Southern autoworkers are standing up, and I expect many more to follow Volkswagen’s lead,” said UAW Region 8 Director Tim Smith. “Workers are done being left behind, and VW is just the first step towards justice for autoworkers everywhere. Who are we? U-A-W!”

[Images: UAW]

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