The United Auto Workers (UAW) is preparing to negotiate a new labor contract with Volkswagen for its Chattanooga plant, with talks scheduled to start on September 19. This move builds on the union’s recent successes with the Detroit Three, using the 2023 labor agreements as a negotiation model.
On September 15, UAW leaders held a kickoff rally in Chattanooga, where UAW President Shawn Fain, Vice President Chuck Browning, and Tim Smith, Director of UAW Region 8, addressed attendees. Browning, who previously led negotiations with John Deere and Caterpillar, will head the bargaining efforts with VW. The rally featured a symbolic display with UAW members wearing red polos emblazoned with “GOS,” which stands for “Get our s—.”
The Volkswagen Chattanooga plant, which manufactures the ID4, Atlas, and Atlas Cross Sport models, saw a significant shift in April when workers voted decisively to join the UAW, overcoming previous failed attempts at unionization. The union now seeks improvements in profit sharing, cost-of-living adjustments, retirement security, affordable healthcare, and eliminating tiered wages. Around 800 demands are currently on the table to achieve a contract that reflects the priorities of the new union members.
The UAW’s push comes amid broader challenges for VW, including recent revelations of a potential end to a long-standing job security agreement in Germany and delays in a major cost-cutting program. The company also navigates significant international investments, including potential deals with Rivian and Xpeng. Despite these challenges, VW has committed to working collaboratively with the UAW to reach a fair agreement.
UAW President Fain criticized the wage disparity between VW workers and those at other assembly plants, noting that VW employees earn 15 percent less than their counterparts at nearby Ford facilities. He also highlighted concerns over VW Group CEO Oliver Blume’s salary and shareholder dividends.
Volkswagen has affirmed its commitment to listening to employee feedback and aims to create a contract supporting the Chattanooga plant and the broader company goals. As the talks begin, both sides are poised to address critical issues that will shape the future of labor relations at one of VW’s key U.S. facilities.
