Volkswagen workers approve first UAW contract

Workers at Volkswagen’s Chattanooga, Tennessee plant have overwhelmingly approved their first contract with the United Auto Workers (UAW), delivering a major organizing victory for the union in the U.S. South.

About 96% of voting employees supported the four-year agreement, according to results announced Thursday. The deal caps an 18-month negotiation process between the union and the German automaker, News.Az reports, citing Reuters.

Under the new contract, workers will receive wage increases totaling about 20%, along with improved healthcare benefits and stronger job security provisions.

UAW President Shawn Fain hailed the outcome as a breakthrough moment for the union’s expansion strategy in the South, a region that has historically resisted unionization.

“Volkswagen workers have moved yet another mountain,” Fain said in a statement.

The UAW has been working to build on its momentum after securing major contracts with Detroit’s Big Three automakers in 2023 following a six-week strike. Those agreements delivered roughly 25% wage increases and cost-of-living adjustments at Ford, General Motors and Stellantis.

Volkswagen said the agreement reflects a shared commitment to competitive pay and long-term stability for employees and operations.

The Chattanooga facility, Volkswagen’s only U.S. assembly plant, produces the electric ID.4 SUV. Workers there voted 73% in favor of joining the UAW in April 2024 after earlier union drives failed in 2014 and 2019.

News.Az 

By Aysel Mammadzada