Volkswagen Chattanooga auto workers avoid strike with ratified contract

Volkswagen Chattanooga auto workers recently voted to ratify their first union contract, according to the United Auto Workers (UAW) and Volkswagen. 

The contract is the first at a major southern auto plant, according to a press release from UAW. 

With a 96% vote to ratify, the contract includes 20% wage increases, healthcare cost reductions, job security guarantees, and an enforceable grievance procedure. 

“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 press release. “We look forward to building a strong future together in Chattanooga.

UAW says the vote caps a years-long campaign by Volkswagen Chattanooga auto workers to join the UAW. 

“Volkswagen workers have moved yet another mountain,” said UAW President Shawn Fain in the release. “From having the courage to stand up and form their union, to having the backbone to authorize a strike and hold out for a contract that honors their worth, VW workers are leading the way for the entire labor movement and non-union autoworkers everywhere. Welcome to the UAW family.”

More than 3,000 workers voted to join the UAW in April 2024. Volkswagen gave a final offer in September. Workers voted to authorize a strike in October, but continued negotiating with Volkswagen without going on a full strike. A tentative agreement was reached in February. 

A strike would have shut down production of Volkswagen’s Atlas Cross Sport midsize crossover and the ID4 electric compact crossover.

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