Landmark deal: Volkswagen workers ratify first UAW contract in South

Volkswagen workers in Chattanooga, Tenn., voted overwhelmingly last week to ratify a labor contract with the United Autoworkers. The deal marks the first union contract for Southern autoworkers outside the “Big Three” Detroit-area automakers.

After reaching a tentative agreement earlier this month, VW workers voted by 96% to ratify their first union contract. Recall the workers elected to join the UAW last year.

Ratification locks in 20% wage increases, healthcare cost reductions, job security guarantees, a formal grievance procedure, and more, according to the union.

UAW President Shawn Fain welcomed the workers to the UAW family, noting they have “moved yet another mountain” and are “leading the way for the entire labor movement and non-union autoworkers everywhere.”

“Southern autoworkers are standing up, and I expect many more to follow Volkswagen’s lead,” added UAW Region 8 Director Tim Smith.

Laura Miller

Laura Miller is a reporter and editor for Steel Market Update. She has held various editorial positions with steel industry publications, associations, and mills since 2007. She joined the SMU team in 2022. She is a member of the Association of Women in the Metal Industries and a past-president of the AWMI Pittsburgh Chapter. She holds a BA in Latin American Studies from Edinboro University of Pennsylvania.

Laura Miller

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