UAW-Volkswagen deal marks historic breakthrough

The tentative agreement, which will now be put to a ratification vote by the workforce, includes a 20 per cent wage increase, enhanced healthcare benefits, stronger job security provisions and improved paid time off. It is the first union contract at the Volkswagen Chattanooga plant, which was until the vote in 2024 the last VW operation anywhere in the world without a union.

The historic organizing effort in Chattanooga was itself a breakthrough for labour in the traditionally difficult landscape of the US South after earlier union drives in 2014 and 2019 had failed to secure worker support. The union win in 2024 came after a complex and prolonged battle with company management, which failed to show the required neutrality for a very long time.

IndustriALL Global Union general secretary Atle Høie says:

"I am in awe of the UAW's relentlessness in fighting for what is right and standing up for workers' rights in a climate that systematically seeks to weaken organized labour.

"This victory is not just a win for the workers at Volkswagen but hope for millions of workers across the US, proving that persistence and solidarity can pave the way for significant improvement in workers' rights and justice on the job."

For the UAW, the tentative contract represents both a material gain for Volkswagen employees and a symbolic milestone in efforts to expand union influence beyond the Big Three Detroit automakers. The Southern auto industry has long been hostile territory for organized labour, making the Chattanooga success a potential catalyst for further campaigns in the region and across the US manufacturing sector.

The 3,200 workers at the Chattanooga plant will now review the terms of the tentative agreement ahead of a formal ratification vote in the coming weeks.