Volkswagen gives final offer to Tennessee United Auto Workers (UAW)
Volkswagen gave a final contract offer to United Auto Workers (UAW) at its Chattanooga plant after nearly a year of ongoing negotiations, a statement on its website says.
“Volkswagen has presented a final contract offer that reflects our deep commitment to our employees and the Chattanooga community,” the statement says.
The proposal includes a 20% wage increase, a first-ever cost-of-living allowance, a $4,000 ratification bonus, reduced health care costs, paid time off, and additional holidays.
“This offer is tailored to the needs of our workforce, our plant, and our community,” the statement says. “It balances employee priorities with the economic challenges facing our industry, ensuring we can continue to invest and grow in Chattanooga. We urge the UAW to allow our employees the opportunity to vote on this important agreement.”
Chuck Browning, a veteran negotiator for UAW, told Automotive News that the elected bargaining committee is reviewing the offer.
“If it honors the hard work and dignity of the thousands of VW Chattanooga workers who make this company billions in profits, it will be taken seriously,” Browning said in an emailed statement to Automotive News. “If not, the company needs to be prepared to do better, and our members will be prepared to send that message loud and clear.”
Automotive News reports that the UAW is seeking a 24.5% raise over three years, uncapped cost-of-living adjustments, free health care, up to 12% contributions to retirement accounts, and profit-sharing bonuses comparable to what the Detroit 3 automakers pay their factory workers.
The Atlas large and Atlas Cross Sport midsize crossovers and ID.4 electric compact crossover are built at the Chattanooga plant; however, the company has slowed down its ID.4 production because of low demand.
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