Driving the news: The first Southern workers outside of the Detroit Three at the Volkswagen Chattanooga Plant now have a tentative contract with the European automaker, the UAW announced late on Feb. 4.
For context: Workers at the Tennessee plant voted 3-to-1 to join the union in 2024 and then elected a 20-member negotiating committee.
Once ratified, the new contract will award plant workers a legally binding, enforceable contract.
OUTSMART THE CAR MARKET IN 5 MINUTES A WEEK
Get insights trusted by 55,000+ car dealers. Free, fast, and built for automotive leaders.
Nuts and bolts: The contract covers wages, healthcare and more.
Across-the-board 20% wage increases
Improved healthcare, including lower out-of-pocket costs
Signing bonuses of about $6,550 per worker followed by annual bonuses of $2,550 during the life of the contract
Stronger health and safety standards
What they’re saying: “This deal proves what happens when autoworkers stand up and demand their fair share,” UAW President Shawn Fain said in a statement. “People said Southern autoworkers could never form a union or win a union contract. Volkswagen workers in Chattanooga said, ‘Watch this.’”
Bottom line: The times they are a-changin’. The tentative deal, coming in the famously anti-Union South, signals a profound shift in sentiment and shows that workers still have power when they use their voice collectively.
