(CHATTANOOGA, TENNESEE) – Unionized Auto Workers employed at Volkswagen’s Chattanooga, Tennessee Plant have won a historic tentative agreement with the company.

After making history as the first Southern Auto Workers outside the Big Three to join the United Auto Workers (UAW), the Union’s 3,200 members who work at Volkswagen Chattanooga have secured a deal that provides 20% across-the-board wage increases, affordable health care, real job security - and more, UAW Officials said.

After Workers voted 3-to-1 to join the UAW in 2024, they elected a 20-Member Negotiating Committee of their peers and after months of negotiations, the tentative deal marks a breakthrough for Non-Union Auto Workers and Manufacturing Workers across the South.

The tentative deal ensures Volkswagen Workers have a legally binding and enforceable agreement that guarantees fair pay, more affordable health care, safer working conditions, and clear protections against favoritism.

UAW President Shawn Fain said: “For years, Chattanooga Workers were told to settle for less while Volkswagen made record profits. Workers stood together and won their Union - and now they’ve secured a life-changing first agreement. This deal proves what happens when Auto Workers stand up and demand their fair share. People said Southern Auto Workers could never form a Union or win a Union contract. Volkswagen Workers in Chattanooga said, ‘Watch this.’”

Key Wins in the agreement include: Major Wage Increases - 20% GWI substantial raises that begin to close the gap with industry standards and reflect Volkswagen’s record profits; Improved High-Quality Health Care with No Increases - Lower out-of-pocket costs, improved coverage and protections that ensure no Worker must choose between medical care and basic needs; Big Bonuses - Initial bonuses equaling $6,550 per Worker upon ratification and additional annual bonuses of $2,550 for the life of the agreement. Thousands of dollars of additional compensation for each Worker; Job Security Protections - Strong language against unilateral job cuts, shift reductions and outsourcing - making sure VW keeps good Union jobs in Chattanooga; Stronger Health & Safety Standards - Enforceable safety rules, dedicated Union Safety Representatives, and a greater Worker Voice in identifying and fixing hazards on the job; Paid Time Off & Scheduling Protections - Guaranteed paid leave, fair scheduling requirements and safeguards against forced overtime and favoritism; Fair Discipline & Grievance Rights - Clear, enforceable protections against unfair discipline and a transparent, Worker-centered grievance process; and A Real Voice on the Job - Rights that ensure Workers have a say in day-to-day decisions that shape their work, their safety and their future.

To read This Labor News Report In Its Entirety, Go To: UAW Reaches Tentative Agreement with Volkswagen in Chattanooga, Marking Historic Breakthrough for Southern Autoworkers - UAW | United Automobile, Aerospace and Agricultural Implement Workers of America

Photo Courtesy Of The National AFL-CIO.