Dive Brief:
- The UAW has announced a historic tentative agreement with Volkswagen of America that will unionize roughly 3,200 workers at its Chattanooga, Tennessee assembly plant, the union announced in a press release Wednesday.
- Plant workers in Tennessee will receive a 20% across-the-board wage hike, an immediate $6,550 ratification bonus and annual bonuses of $2,550 for the life of the contract. The deal also offers lower out-of-pocket health care coverage and increased job security. Workers at the plant will now proceed with a formal ratification vote to join the UAW in the coming weeks.
- “For years, Chattanooga workers were told to settle for less while Volkswagen made record profits,” said UAW President Shawn Fain in a statement. “So, the workers stood together and won their union—and now they’ve secured a life-changing first agreement.”
Dive Insight:
The historic contract between Volkswagen and the UAW also establishes the first-ever cost-of-living allowance (COLA) at the plant. It also gives workers legally binding protections against outsourcing, shift reductions and unilateral job cuts, per the UAW.
The union will also work to create a safer work environment for its members at VW’s assembly plant, including enforceable safety rules with dedicated UAW representatives.
The Tennessee plant currently assembles the electric Volkswagen ID.4 and the Atlas and Atlas Cross Sport SUVs for the U.S. market…