UAW Secures First Win in South, Reaches Tentative Deal with Volkswagen
More than a decade of effort by the United Auto Workers finally paid off, in the form of a tentative contract covering about 3,200 hourly workers at Volkswagen’s Chattanooga, Tennessee plant.
The length of the deal wasn’t released, but it includes a 20 percent raise for plant workers, plus $6,550 bonuses after the contract is ratified by hourly employees. They’ll also get a $2,550 annual bonus for life of the contract. The deal also lowers health care costs while providing better care, the union noted in a release.
Local union officials will meet with members in the new few days to reveal the details of the contract, then set up a ratification vote, which will likely be sometime next week.
The UAW’s been trying to gain a foothold in the auto plants in the Southeastern U.S. for more than 10 years and finally began making inroads when it secured a deal to represent the Chattanooga workers two years ago. After reaching new deals for workers at General Motors, Ford, and Stellantis in 2023, UAW President Shawn Fain shifted focus south.
“This is a historic moment, not only for these members but for our union as a whole and the entire working class,” Fain said during a YouTube livestream Wednesday night, adding later, “The days of harassment are over at Volkswagen.”
Volkswagen acknowledged the new contract in a short statement that ended, noting it was “pleased to confirm” the new deal.
“This comprehensive agreement will provide meaningful changes for our workforce, including increased wages, reduced health care costs, and more paid time off. All these benefits recognize and reward the hard work and dedication our team members give every day.”
The UAW has repeatedly tried and failed to gain acceptance at the plants of foreign automakers for years, including Nissan, Mercedes-Benz, Kia, and Honda. The effort to gain the trust of the workers at the VW Chattanooga plant took multiple votes throughout the years before it broke through in 2024, winning by a 3-to-1 margin.
It also sets the stage for the union to renew its efforts at plants in Mississippi, Alabama, and Georgia.
“The Chattanooga victory signals a profound shift in the Southern auto industry, as workers across the region stand up to global corporations, demand their fair share, and build a future where autoworkers — no matter where they live or what company they work for — have a collective voice and a seat at the table,” the union said in a statement.
[Images: Volkswagen, UAW]
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Michael Strong has spent more than 25 years writing about the automotive industry. A Detroit-area native, he’s written about everything from local car shows to product reviews to financial news. Currently he writes and edits for a variety of national and local publications. He’s also a longtime member of the Automotive Press Association and the International Motor Press Association, and a graduate of Georgia Southern University. Hail Southern! Despite a love for ’70s land yachts and BMWs from the late ’80s and early ’90s, his personal vehicle is neither of those.
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It'll be interesting to see if they try to do this at the Toyota plants or Toyota/Mazda plant here in N. Alabama.
The consumer pays the price again. Unions are just like a government job. Poor quality Waste and no incentive to work.