Chattanooga VW workers push for their first union contract after victory

CHATTANOOGA, TENN. — A year after becoming the first Southern autoworkers outside the major U.S. automakers to unionize, Volkswagen employees in Chattanooga are on the brink of securing their inaugural contract. This contract aims to cement the enhanced wages, benefits, and workplace safeguards they have long pursued.

The goal is to replace Volkswagen's inconsistent assurances with a binding contract that enshrines their demands for equitable pay, affordable healthcare, paid leave, improved safety, and protection from favoritism. Following their union victory in April 2024, a 20-member bargaining committee has been established to negotiate terms that reflect the aspirations of the plant's 4,000 employees.

Steve Cochran, a skilled trades worker and co-chair of the Bargaining Committee, emphasized the importance of a robust contract to ensure that commitments are fulfilled, and that respect and security are guaranteed.

The workers are advocating for a contract that matches the benchmark set by other unionized automakers in the U.S., consistent with Volkswagen's substantial profits.

Recently, Volkswagen, recognized as the second-largest automaker globally, reported profits of $20.6 billion for 2024. A UAW survey of nearly 1,800 Chattanooga workers highlights the financial strain caused by the company's subpar U.S. health care options. The survey reveals that nearly 73% of participants have faced difficult choices between medical care and essentials or have accrued debt to afford necessary treatments. This issue is particularly acute among parents and caregivers with children dependent on Volkswagen's insurance, spotlighting the company’s failure to align with industry health care standards.

In the past four years, Volkswagen has redistributed $29.9 billion to shareholders via dividends and stock buybacks. In response, Chattanooga employees are seeking their rightful portion through tangible improvements in remuneration, benefits, safety, job security, and workplace rights. Their demands extend beyond financial aspects, advocating for enhanced safety protocols, equitable scheduling, paid leave, protection from unjust discipline, and a meaningful say in workplace decisions. Workers contend that after over a decade without union representation, the time has come to overturn the exploitative practices that have characterized the Chattanooga plant since its inception in 2011.

As negotiations have advanced, Volkswagen has intensified its anti-union actions, allegedly disregarding U.S. labor legislation. In March, the UAW lodged federal labor charges against the company for making unilateral job cuts and significant changes without prior negotiations, purportedly violating federal statutes. This has highlighted the company’s apparent bias towards lower-wage production in other countries.

Currently, 75% of Volkswagen's North American vehicles are produced in Mexico, where workers reportedly earn around $7 per hour. This model, characterized by worker exploitation, is said to suppress wages across borders and undermine American manufacturing jobs.

Following an unauthorized reduction in workforce, Volkswagen management allegedly restricted union members from attending a bargaining session, prompting workers to organize a rally demanding respect and fair contractual terms.

UAW President Shawn Fain commended the Chattanooga workforce for spearheading a movement aimed at elevating standards for the Southern working class.

“VW workers made history a year ago—and now they’re making it count,” said Fain. “They stood up, took on the boss, and won their union. They’re fighting for a contract that reflects the power they have built and locks in real raises, real rights, and real respect. This is what happens when working-class people stand up together.”

The struggle at the Chattanooga plant symbolizes a broader movement among workers to reclaim power, hold multinational corporations accountable, and establish a future where autoworkers globally have a collective voice in shaping their employment conditions and share in the wealth they generate.