Volkswagen workers ratify first UAW contract, marks win for labor in the South

By Nora Eckert

DETROIT, Feb 19 (Reuters) – Workers at a Volkswagen plant in Chattanooga, Tennessee, on Thursday voted 96% in favor of a labor deal negotiated by the United Auto Workers union, marking one of the most significant victories of UAW President Shawn Fain’s tenure.

The South has been tough for the union to crack, and Fain has made it a mission to organize plants in the region and across the United States since he was elected president in 2023.

Under the four-year pact, workers are set to receive 20% wage increases, as well as improvements in healthcare and job security.

“Volkswagen workers have moved yet another mountain,” Fain said in a statement.

The union’s push at Volkswagen was aimed at matching the massive wins in Detroit in 2023 that followed a six-week strike at Ford Motor, General Motors and Stellantis and resulted in a 25% wage increase and cost-of-living adjustments.

The union and the company were in negotiations for about 18 months on the details of the agreement at the German automaker’s sole U.S. plant, which produces the electric ID.4 SUV. They arrived at a tentative deal earlier this month.

“This milestone reflects our shared commitment to competitive wages, strong benefits, and the long‑term success of our employees and operations,” Volkswagen said in a statement.

Workers at the plant voted 73% in favor of joining the UAW in April 2024. The labor group narrowly lost votes at the same plant in 2014 and 2019.

Organizing activity in the South has slowed since the union lost a vote at a Mercedes plant in Alabama in 2024.

(Reporting by Nora Eckert and Mrinmay Dey; Editing by Edwina Gibbs)