UAW, Volkswagen reach tentative labor deal at Tennessee plant

Volkswagen and the United Auto Workers (UAW) have reached a tentative agreement on their first labor contract at the automaker’s plant in Chattanooga, Tennessee, marking a major milestone nearly two years after workers voted to unionize.

According to the union, the proposed deal includes a 20% pay increase over the life of the contract, along with improvements to healthcare coverage, job security and paid time off, News.Az reports, citing Reuters.

UAW President Shawn Fain described the agreement as a major achievement for workers, saying it delivers significant improvements in wages and working conditions.

Volkswagen also said the agreement would bring meaningful changes for its workforce, including higher wages, lower healthcare costs and additional leave benefits. Workers at the plant will now vote on whether to approve the contract.

Employees at the Chattanooga facility voted 73% in favor of joining the UAW in April 2024. The vote marked a historic moment, making it the first auto plant in the U.S. South to unionize through an election since the 1940s and the first foreign-owned auto plant in the region to do so.

The agreement comes as the UAW continues efforts to expand union representation across the U.S. auto industry, targeting additional factories operated by major automakers.

The tentative contract follows major labor negotiations across the auto sector in recent years, including nationwide strikes that resulted in significant wage increases for workers at major U.S. automakers.

The outcome of the ratification vote will determine whether the agreement becomes the first full union contract for Volkswagen workers at the Tennessee facility.

News.Az 

By Aysel Mammadzada