TSLA373.190-4.62%
GM80.795-0.195%
F12.015-0.105%
RIVN14.095-0.245%
CYD29.0800.9%
HMC32.1650.495%
TM183.2500.34%
CVNA62.190-0.57%
PAG194.8400.62%
LAD283.870-3.5%
AN154.550-1.66%
GPI230.570-2.04%
ABG165.720-2.05%
SAH60.130-0.39%
TSLA373.190-4.62%
GM80.795-0.195%
F12.015-0.105%
RIVN14.095-0.245%
CYD29.0800.9%
HMC32.1650.495%
TM183.2500.34%
CVNA62.190-0.57%
PAG194.8400.62%
LAD283.870-3.5%
AN154.550-1.66%
GPI230.570-2.04%
ABG165.720-2.05%
SAH60.130-0.39%
TSLA373.190-4.62%
GM80.795-0.195%
F12.015-0.105%
RIVN14.095-0.245%
CYD29.0800.9%
HMC32.1650.495%
TM183.2500.34%
CVNA62.190-0.57%
PAG194.8400.62%
LAD283.870-3.5%
AN154.550-1.66%
GPI230.570-2.04%
ABG165.720-2.05%
SAH60.130-0.39%

Volkswagen makes final contract offer to UAW workers in Tennessee

Volkswagen proposes pay hikes and annual raises in its first contract offer to Chattanooga’s unionized workers.
Volkswagen presented its final and "last, best" contract offer to hourly workers represented by the UAW at its assembly plant in Tennessee.

On the Dash:

  • Volkswagen is offering a 5% immediate pay increase and 3%–6% annual raises over four years, potentially increasing top hourly wages to nearly $80,000 by 2026.
  • The Chattanooga plant is the UAW’s first contract with Volkswagen, serving as a potential model for unionizing non-union automakers.
  • The union is reviewing the proposal, and its decision could influence broader UAW efforts at other U.S. auto plants.

On September 16, Volkswagen presented its final and “last, best” contract offer to hourly workers represented by the United Auto Workers (UAW) at its assembly plant in Tennessee. The proposal is now up to the union to decide whether to put it to a vote.

Volkswagen’s offer includes an immediate 5% pay increase, followed by annual raises ranging from 3% to 6% over the next four years. The company estimates that a worker at the highest hourly wage could earn nearly $80,000 by 2026, which includes an attendance bonus but excludes overtime or profit-sharing. Over the four-year contract, wages are projected to increase by approximately 20%.

Sign up for CBT News’ daily newsletter and get the latest industry stories delivered straight to your inbox.

“This offer is tailored to the needs of our workforce, our plant, and our community,” said a Volkswagen spokesperson. 

UAW lead negotiator Chuck Browning confirmed that the union is currently reviewing Volkswagen’s offer. The union has been negotiating for a year regarding wages and healthcare benefits at the Chattanooga facility.

Notably, the Chattanooga plant is the only U.S. auto assembly plant, aside from those owned by Ford, General Motors, and Stellantis, to have gained UAW representation after a historic breakthrough in 2024. The stakes for this first contract are particularly high, as the UAW aims to demonstrate meaningful gains for workers at non-union automakers, including Hyundai, Toyota, and Tesla, as part of its ongoing effort to expand union membership.

Read More
More from Articles
Wholesale used-vehicle prices fall in September as high fuel costs shift demand

Wholesale used-vehicle prices fall in September as high fuel costs shift demand

- October 8, 2026
On the Dash: Used-vehicle wholesale prices fell in September, with the Manheim index down 1.1% from August to 205.9 and 0.6% below a year ago. Cox Automotive cut its 2026...
Mercedes-Benz U.S. sales rise 6% in Q3 as China pulls global car sales down 8%

Mercedes-Benz U.S. sales rise 6% in Q3 as China pulls global car sales down 8%

- October 8, 2026
On the Dash: Mercedes-Benz car sales fell 8% to 407,200 units in Q3, mainly because of China. U.S. car sales rose 6% to 75,300 units and are up 12% this...
Polestar Q3 sales rise 1% as Polestar 5 deliveries begin

Polestar Q3 sales rise 1% as Polestar 5 deliveries begin

- October 8, 2026
On the Dash: Polestar estimates Q3 retail sales at 14,371, up 1% year over year, with nine-month sales reaching 44,790. Sales excluding the U.S. fell 8% in Q3 and 0.5%...
Mexico auto exports fall 12% as U.S. tariffs pressure production

Mexico auto exports fall 12% as U.S. tariffs pressure production

- October 8, 2026
On the Dash: Mexico’s auto exports fell 12% in September, the steepest decline since December 2025. Monthly vehicle production dropped 15%, while domestic sales increased 8%. U.S. tariffs and uncertainty...
CBT News

Privacy Overview

This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.