UAW Files Labor Charges Against Volkswagen for Violating US Labor Laws

UAW Takes Legal Action Against Volkswagen Over Chattanooga Plant Practices

Chattanooga — In a significant labor dispute, the United Auto Workers (UAW) has lodged federal labor charges against Volkswagen. The charges claim that the company is bypassing U.S. labor laws by cutting jobs and implementing major changes at its Chattanooga, Tennessee facility without engaging in necessary negotiations with the union.

UAW President Shawn Fain expressed disappointment over Volkswagen's actions, emphasizing the disparity between the treatment of workers in Chattanooga and those at companies like Ford, General Motors, and Stellantis. He noted that, nearly one year after Volkswagen employees voted to join the UAW, the company has yet to adhere to the established bargaining norms enjoyed by 150,000 autoworkers in the United States.

Fain highlighted the financial success of Volkswagen, which recently reported over $20 billion in profits for 2024, and questioned their decision to cut a shift at the Chattanooga plant. This facility marks Volkswagen's sole manufacturing site in the United States.

Fain criticized Volkswagen's labor practices, pointing out that 75% of their North American production occurs in Mexico, where workers are reportedly paid around $7 an hour, despite the high retail prices of the vehicles sold in the U.S. According to Fain, this strategy undermines fair wages and contributes to a downward spiral in labor standards across the auto industry.

He also accused the automaker of attempting to push through layoffs in the U.S. ahead of potential auto tariffs, while benefiting from low-wage labor in Mexico. "This is a company that makes 75% of their North American products in Mexico, paying highly exploited workers around $7 an hour to sell cars for tens of thousands of dollars in the US," said Fain. "They do this to avoid paying a living wage and drive a race to the bottom in the auto industry. It’s bad for workers everywhere."

Fain stated that the UAW has informed the Trump Administration of Volkswagen's actions, labeling them as "anti-union, anti-worker, and anti-American." He asserted, "The 4,000 autoworkers in Chattanooga deserve better. America deserves better. And the UAW is going to fight like hell to deliver for Chattanooga, for Volkswagen autoworkers, and for the whole working class.”

The union plans to hold Volkswagen accountable for its actions, emphasizing the need to protect workers' rights and maintain fair labor standards in the auto industry.