Volkswagen workers in Tennessee secure 14% raise through union
The United Auto Workers union has represented American Volkswagen employees since April 2024. It only took a few months to achieve their first success, a 14% wage increase for employees at the Chattanooga plant.
As reported by Reuters, Volkswagen has agreed to a 14% raise for the unionized workers at the Chattanooga factory in Tennessee. The raises will be cyclical and spread over four years. Employees can also expect profit-sharing and improved health benefits.
Volkswagen's plants mark a significant milestone as the first automotive factories since the 1940s, where unions were formed through elections. Workers, encouraged by the successes of United Auto Workers president Shawn Fain, decided to join the union. In 2023, Fain initiated strikes against Ford, GM, and Stellantis in Detroit, resulting in an average 25% wage increase.
Meanwhile, the situation in Germany is gradually intensifying. Union members from IG Metall are striking not to obtain raises but to oppose cuts and potential layoffs in Volkswagen's European factories. So far, they have not been successful.