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"I'm voting yes to get Volkswagen to come back to the table," said one employee at the plant. "The majority of the people I know don't want VW's 'final offer.'"
Volkswagen workers in Chattanooga, Tennessee, who unionized with the United Auto Workers last year, announced Thursday that they will vote next week to authorize a strike after over 13 months of fruitless contract negotiations with the auto giant.
The strike authorization vote planned for October 28-29 "comes after months of unfair labor practices committed by the company, including bad faith negotiations, unlawful intimidation, and the unilateral cutting of jobs at Volkswagen’s only US assembly plant," UAW said in a statement. The union also highlighted Volkswagen's $20.6 billion in profits last year.
Company spokesperson Michael Lowder said Monday that "Volkswagen made it clear to the union that our last, best, and final offer is indeed final. We cannot in good faith prolong negotiations by continuing to bargain when we have already put our best offer on the table. It is time for the UAW to give VW employees a voice and let them decide for themselves by voting on our final offer."
However, multiple employees said Thursday that they are not happy with the company's latest offer and plan to vote for a strike.
"I'm voting yes because this is the time to show Volkswagen we are serious about receiving industry-standard treatment. Job security's essential. They could pay us $100 an hour, but it means nothing if they close the plant two weeks into the agreement," said James Robinson. "I'm hoping this process shows the company we are serious about getting a fair contract. We will show them their offer wasn't enough, show them we're willing to stand up to get what we deserve."
"I'm hoping this process shows the company we are serious about getting a fair contract."
Employee Taylor Fugate said that "I'm voting yes to get Volkswagen to come back to the table. The majority of the people I know don't want VW's 'final offer.' They want to keep negotiating, and we are willing to do what it takes to make that happen."
"We need affordable healthcare and a strong job security statement that leaves no gray area," Fugate added. "We also deserve equal standards—Southern autoworkers shouldn't be treated differently!"
One elected Republican held a press conference on Wednesday in a bid to bully the union into holding a vote on the company's latest offer. Local 3 News reported that Hamilton County Commissioner Jeff Eversole said: "Volkswagen put forward a final union contract offer over a month ago that offers significant gains for Chattanooga workers, including a 20% wage increase, a cost-of-living allowance, a $4,000 ratification bonus, lower healthcare costs, and much more. Many employees have been reaching out to the UAW to vote, and the UAW has refused."
Payday Report's Mike Elk pointed out Thursday that "the tactics used by the GOP in Chattanooga are similar to the tactics that they have used for more than a decade to sometimes successfully dissuade union votes by implying that the plant may close if the union gets 'too greedy' (their words, not my mine, as the son of a Volkswagen auto assembly line worker)."
Local 3 News noted that "during the press conference, dozens of members from both the UAW and the Chattanooga Area Central Labor Council, or CLC, began picketing outside of the VW plant."
The outlet also spoke with some employees. One of them, Dakotah Bailey, explained that "originally, it was going to be a 25% increase in wages. They didn't want to take that, and now they dropped it down to 20%. I wanted to try and get my money now. Especially right before the holidays. It would be great to have an extra $5,500 sitting in my bank account."
According to a "Volkswagen Stories" video series published by the UAW on YouTube, wages are a primary concern for workers. Other top priorities include health and safety conditions at the plant, healthcare, paid time off, and retirement benefits.
"I don't want to strike, but if it comes to it, I will," Volkswagen worker Mitchell Harris said Thursday. "Because I feel that all my brothers and sisters of UAW Local 42 deserve respect, to provide a better life for their families, and have job security for us and generations to come."
"You're the backbone of this plant, you're the backbone of this company, and you deserve your fair share of the wealth that you create," UAW President Shawn Fain told workers.
Following their historic vote to join the United Auto Workers in April, workers at a Volkswagen plant in Chattanooga, Tennessee held a rally on Sunday as they prepare to head into their first round of negotiations with the company next week.
With their vote, the Chattanooga workers became the first Southern automakers not affiliated with one of the Big Three auto companies to win a union.
"Just a few months ago, you voted 3-1 to join the UAW," the union's president Shawn Fain told the assembled workers, adding, "You had faith, and you moved mountains, you overcame opposition, and you won your union."
"With the kinds of profits you're generating, Volkswagen could double your wages, not raise prices, and still make billions of dollars. It's a choice."
At a rally that began at 1:30 pm Eastern Time on Sunday, Fain told gathered workers that they were now ready for the "next step."
"We tell Volkswagen, get out your pens, because it's time to put it down in writing," Fain said.
Heading into negotiations, the UAW is set to make several demands of Volkswagen, among them improved health and safety; competitive wages including cost of living allowances, profit sharing, and no tiers; improved paid-time-off policies; more retirement security; affordable healthcare; and union protections such as due process, union representation, paid time for union work, job training, and fair promotion policies.
Fain warned the workers that the company and the corporate media would try to fearmonger about the union's demands.
"They're going to say that our righteous fight for a high quality of life for the working class will wreck the economy or derail the transition to EV," Fain said, adding, "The only economy that's going to get wrecked in this is their economy that only works for the rich and the corporate class."
Fain shared figures showing that Volkswagen had increased its profits since 2021 by 49% compared with the previous three years, securing $24 billion in profits in 2023 alone. But instead of sharing that windfall equitably with the workforce and the local economy, it paid CEO Oliver Blume $10.5 million and wealthy shareholders $12.7 billion. Shareholders have seen their dividends jump by 288% in two years.
"That's billions of dollars that have been robbed from the workers who generated those profits," Fain said. "It's billions of dollars that weren't spent on the EV transition. It's billions of dollars being spent on mansions in faraway countries and yachts in private marinas, and not being spent in the local businesses right here in Tennessee."
At the same time, workers at the Chattanooga plant had produced more than 1.5 million vehicles for over $50 billion in sales since 2011.
"You're the backbone of this plant, you're the backbone of this company, and you deserve your fair share of the wealth that you create," Fain said, adding, "With the kinds of profits you're generating, Volkswagen could double your wages, not raise prices, and still make billions of dollars. It's a choice."
Ultimately, Fain said the figures he cited had one cause: "corporate greed."
Fain noted that the Chattanooga workers were entering negotiations for their first union contract roughly one year after UAW workers at the Big Three car makers launched their historic "stand up strike, ultimately winning record-breaking contracts from General Motors, Ford, and Stellantis.
"Since that moment, workers everywhere including here at Volkswagen are standing up to fight corporate greed and demand your fair share in the economy," Fain said.
He told the Chattanooga workers, "Now is your time to win a record contract and make history again."
If roughly 5,000 Alabama Mercedes workers vote to unionize in the coming weeks, the ripple effects could empower workers nationwide.
The United Auto Workers recently scored the largest union victory in decades in the South. Their success at a Tennessee Volkswagen plant could be a turning point for labor in a region long known for governmental hostility to unions.
The next test will be a UAW election scheduled for the week of May 13 at a Mercedes-Benz factory in Alabama, a state that has attracted so much auto investment it has earned the nickname “the Detroit of the South.”
If the roughly 5,000 Mercedes workers vote to unionize, the ripple effects could empower workers nationwide.
We need a New South economic structure based on fairness and equity.
For decades, Southern states have pursued “low-road” development strategies, luring investors with massive public subsidies and repressive labor policies. This has pitted workers across the country against each other, undercutting everyone’s ability to secure fair compensation.
Alabama has spent $1.6 billion to woo Mercedes, along with Toyota, Hyundai, and Honda. All these foreign companies’ operations in the South are non-union, in contrast to the unionized Big Three of Ford, GM, and Stellantis.
This foreign investment has created thousands of Alabama jobs—but with weak worker protections, the state remains one of the nation’s poorest. And while these companies have enjoyed rising corporate profits, they have left workers behind.
An in-depth report by the nonprofit group Alabama Arise found that inflation-adjusted average pay for the state’s autoworkers has dropped by 11% over the past 20 years to $64,682. Meanwhile, CEO pay stands at $13.9 million at Mercedes and $6.9 million at Toyota.
The foreign-owned firms’ payrolls also reflect Alabama’s long history of racial discrimination, with Black and Latino workers earning substantially less than their white counterparts. By contrast, the Economic Policy Institute has found that union workers make 10.1% more on average than non-union workers.
The benefits are even greater for workers of color. Unionized Black workers make 13.1% more than non-union Black workers in comparable jobs—and Latino union members make 18.8% more than non-union Latino workers.
Equitable pay practices boost local economies by putting more money in workers’ pockets for groceries, housing, and other goods and services from local businesses. And that’s good for families of every color.
But Alabama Governor Kay Ivey doesn’t see things that way. Before the UAW vote in Tennessee, she joined GOP governors from Georgia, Mississippi, South Carolina, Tennessee, and Texas to discourage VW workers from voting yes with unfounded threats of mass layoffs.
When 73% of those autoworkers voted for the UAW, it was a strong rebuke of the region’s low-road, anti-worker model. So corporate lobbyists in the region have enlisted state legislators and cabinet officials in a sustained campaign to blunt organizing momentum.
How will the election turn out in Alabama?
A new poll indicates that 52% of residents in this deep-red state support the autoworkers’ union drive, while just 21% are opposed. This echoes a 2022 poll commissioned by the Institute for Policy Studies in Jefferson County, Alabama, where workers were attempting to unionize an Amazon warehouse in Bessemer. That survey showed nearly two-thirds support.
While the Alabama Amazon campaign fell short in the face of aggressive anti-union tactics, increased public approval of unions is a testament to many years of community and labor organizing.
The fact that a large majority of workers at the Mercedes-Benz plant signed petitions earlier this year in support of the election is encouraging. We need a New South economic structure based on fairness and equity. Organized labor is an essential partner in that mission.