Volkswagen Workers in Chattanooga Near First UAW Contract
CHATTANOOGA, Tenn. — Volkswagen and the United Auto Workers reached a tentative labor agreement late Wednesday for about 3,200 employees at the automaker’s Chattanooga, Tennessee, assembly plant, marking a milestone for the union’s Southern organizing push and delivering the first UAW contract at a Southern auto plant outside the Detroit Three.
The UAW said the tentative deal includes a 20% across-the-board wage increase, improved health care, job security protections, guaranteed paid leave, fair scheduling requirements and safeguards against forced overtime. The union also said workers would receive a $6,550 bonus upon ratification, along with additional annual bonuses of $2,550 for the life of the agreement.
“For years, Chattanooga workers were told to settle for less while Volkswagen made record profits,” UAW President Shawn Fain said. “Now they’ve secured a life-changing first agreement.”
Chattanooga workers voted in April 2024 to join the UAW, making Volkswagen the first auto plant to unionize through an election in the South. After the vote, workers elected a bargaining committee to negotiate the first contract.
This agreement follows months of negotiations after Volkswagen presented what it called a “final” offer in October. The UAW rejected that proposal and continued bargaining, saying it was seeking stronger job protections, health care improvements and additional compensation.
The UAW said the tentative agreement includes stronger language limiting outsourcing, shift reductions and unilateral job cuts, along with health and safety provisions and a clearer grievance process. The union also said the deal includes new product commitments and enhanced right-to-strike protections.
The tentative agreement comes as Volkswagen has posted strong financial results. The UAW said the automaker reported $20.6 billion in profits in 2024.
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“This contract is proof that if you stand up and stick together, you can win a better life,” said Kelcey Smith, a worker in the paint department.
Workers are expected to receive full details of the tentative agreement in the coming days, followed by a ratification vote.
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