Company Announcements
February 5, 2026
UAW, VW reach landmark tentative deal in Tennessee
Written by David Schollaert
The United Auto Workers (UAW) and Volkswagen have reached a tentative agreement covering 3,200 workers at the automaker’s Chattanooga, Tenn., assembly plant.
The landmark deal is the first union contract for Southern autoworkers outside the “Big Three” Detroit-area automakers.
Volkswagen on Wednesday confirmed a tentative deal had been reached for a first union contract in Chattanooga, and said the “comprehensive agreement will provide meaningful changes for our workforce… and reward the hard work and dedication our team members give every day.”
Recall that workers at the assembly plant voted overwhelmingly to join the union back in April 2024, after the UAW secured significant wage and benefit gains with Ford, General Motors, and Stellantis.
The tentative deal includes a 20% wage increase, improved healthcare coverage with no cost increases, $6,550 ratification bonuses, annual bonuses, and new job‑security protections, per the UAW.
The agreement also strengthens health and safety standards, paid‑time‑off, and grievance procedures.
UAW President Shawn Fain called the agreement a “life‑changing” breakthrough for Southern autoworkers, noting Volkswagen’s strong global profits in 2024.
Workers will review full contract details before a ratification vote.
If approved, the contract would represent a significant shift in the Southern auto sector, which is often characterized by foreign ownership and non-union workforces.
Volkswagen is headquartered in Wolfsburg, Germany. The plant in Chattanooga is Volkswagen’s only US assembly plant. It makes the Volkswagen ID.4 and Volkswagen Atlas SUVs.
