Volkswagen workers vote overwhelmingly to join the UAW, giving the union a groundbreaking win | CNN Business (2024)

Volkswagen workers vote overwhelmingly to join the UAW, giving the union a groundbreaking win | CNN Business (1)

Volkswagen automobile plant employees celebrate winning a vote to join the UAW union Friday, April 19, 2024, in Chattanooga, Tenn.

New York CNN

Hourly workers at Volkswagen’s plant in Chattanooga, Tennessee, overwhelming voted to join the United Auto Workers late Friday, a major breakthrough in the union’s effort to organize workers at plants nationwide.

Shortly after 11 pm ET on Friday the National Labor Relations Board, the federal body that oversees such votes, announced that 73% of the 3,600 workers at the plant who cast ballots had voted in favor of joining the union. There was an 84% turnout among eligible voters.

“This election is big,” said Kelcey Smith, a worker in the paint department at Volkswagen, in a UAW statement. “This is the time; this is the place. Southern workers are ready to stand up and win a better life.”

There are roughly 150,000 workers at nonunion auto plants in the United States today, roughly the same number as at the American plants of the three unionized automakers — General Motors, Ford and Stellantis. If the union can win the right to represent workers across the broad swath of the nonunion auto plants, it could increase their leverage in future contract negotiations.

The UAW’s victory could also provide a high-profile beachhead for unions in Southern states, which have a much lower level of union representation among workers than in Northern industrial states. Most of the nonunion auto plants are spread across the south.

Volkswagen workers vote overwhelmingly to join the UAW, giving the union a groundbreaking win | CNN Business (2)

Volkswagen Workers At Chattanooga Hold Unionization Vote. People celebrate after the United Auto Workers (UAW) received enough votes to form a union at a UAW vote watch party on April 19, 2024 in Chattanooga, Tennessee. Since Wednesday workers have been voting on whether to join the United Auto Workers (UAW) union.

The union has announced an effort to represent workers at not only Volkswagen, but also nine other foreign automakers with American plants — BMW, Honda, Hyundai, Mazda, Mercedes, Nissan, Subaru, Toyota and Volvo. It has already filed to have another election at the Mercedes plant in Vance, Alabama, just outside of Tuscaloosa. That vote is set to take place next month and be concluded on May 17.

It is also seeking to represent workers at three American automakers making electric vehicles — Tesla, Rivian and Lucid. But it has yet to file to hold votes at those American EV makers or at the American plants of the eight foreign automakers other than Volkswagen and Mercedes.

Unlike many employers who conduct campaigns against union membership when faced with an organizing effort, Volkswagen had remained neutral in this campaign. Its statement once the vote was announced was similarly even-handed, stating only the vote results and that “We will await certification of the results by the NLRB. Volkswagen thanks its Chattanooga workers for voting in this election.”

That certification is expected to come within five days if Volkswagen does not file objections to the vote, according to the NLRB. The agency said the company is expected to begin bargaining in good faith with the union at that time.

One reason the company was more neutral than many employers facing a union vote is the strength of unions in its home country of Germany. The main union for its plants there has a seat on the company’s board.

Auto strikes and contracts helped win vote

The union’s organizing efforts follow a six-week strike against the three unionized automakers last fall, which won record pay increases for UAW members at the three companies. They received immediate raises of at least 11% and pay increases totaling more than 30% over the life of the contract, which runs through April 2028.

Many of the nonunion automakers, including Volkswagen, gave their workers similar raises in the wake of the UAW contracts. But the workers at the nonunion plants generally earn less than their counterparts at the unionized automakers.

The average worker in Volkswagen’s Chattanooga plant makes about $60,000 a year before bonuses and benefits, according to the company. Production workers working under the recent UAW contract now make about $36 an hour, or about $75,000 a year before overtime, bonuses and benefits.

Volkswagen workers vote overwhelmingly to join the UAW, giving the union a groundbreaking win | CNN Business (3)

In an aerial view, a Volkswagen assembly plant is seen on April 19, 2024 in Chattanooga, Tennessee. Since Wednesday workers have been voting on whether to join the United Auto Workers (UAW) union.

Volkswagen once before had had an American plant where workers were represented by the UAW, in Pennsylvania. But that plant closed in 1988 in the face of weak American sales by Volkswagen.And the UAW has had little success winning the right to represent nonunion auto workers since then, until Friday’s vote.

But the union’s effort had been opposed by a coalition of six southern Republican governors who have nonunion auto plants in their states.

The six, including Tennessee Gov. Bill Lee as well as the governors of Alabama, Georgia, Mississippi, South Carolina and Texas, signed a letter this week arguing those nonunion jobs would be at risk if the union won Friday’s vote.

“The reality is companies have choices when it comes to where to invest and bring jobs and opportunity. We have worked tirelessly on behalf of our constituents to bring good-paying jobs to our states,” said the letter. “Unionization would certainly put our states’ jobs in jeopardy.”

But the vote represents a run of success by the nation’s unions, which won pay increases of 10% or more for nearly a million union members last year, according to an analysis by CNN. Strikes were at a decade high in 2023, and organizing activity also increased.

Friday’s vote results were praised by the AFL-CIO, the main federation of unions in the country.

“This victory sends a powerful message to corporate interests everywhere: Workers will no longer tolerate exploitation and mistreatment,” said the AFL-CIO’s statement. “Whether it’s autoworkers in Tennessee, film crews in Hollywood, hotel workers in Las Vegas or baristas at the local coffee shop, when working people stand together in solidarity, we have the power to enact meaningful change and usher in a brighter future for all.”

This story has been updated with additional context and developments.

Volkswagen workers vote overwhelmingly to join the UAW, giving the union a groundbreaking win | CNN Business (2024)

FAQs

Did Volkswagen vote in the union? ›

A victory at VW

Workers voted 2,628 to 985 to join the UAW. “I was surprised by the margin,” said Dan Gilmore, a labor attorney and an adjunct professor at the business school of the University of Tennessee's campus in Chattanooga. The UAW and local organizers expressed optimism ahead of the vote.

Have VW workers in Tennessee voted to join the UAW? ›

Autoworkers at Volkswagen Group's assembly plant in Chattanooga, Tennessee voted to join the United Auto Workers union on Friday, according to a press release from the UAW. More than 2,600 workers — 73% — voted in favor of joining the union, while just under 1,000 voted no.

Why did Volkswagen unionize? ›

The UAW is really concerned that wages and work standards will collapse basically as we make this transition, unless they're able to unionize all these non-union automakers. So this is a really big step toward doing that as we make this transition.

Did VW join the union? ›

The three-day unionization vote at Volkswagen ended last Friday, with the union winning overwhelmingly, 2,628 to 985 – the first time workers at a foreign-owned auto plant in the south have unionized. It was the world's only non-union VW plant.

What were the results of the UAW election for VW? ›

The final vote tally was 2,628 to 985, with 83.5% of eligible voters casting ballots from April 17-19. Only a majority of voters was necessary.

Did VW workers in Tennessee pass historic vote to unionize? ›

Those efforts have recently been crowned with success by the overwhelming vote of workers at the Volkswagen plant in Chattanooga, Tennessee. The vote was 2,628 in favor of joining the union and 985 against, meaning around 73% supported the drive. Earlier efforts to unionize the facility failed in 2014 and 2019.

What is the benefit of joining the UAW union? ›

Becoming a member helps strengthen our voice as Postdocs and Academic Researchers at UC and allows you to participate in union decisions. Consistent majority support from Postdocs and ARs has been critical to winning improved wages, rights and benefits in our contracts with UC.

Who started the United Auto Workers UAW? ›

But a caucus of industrial unions led by John L. Lewis formed the Committee for Industrial Organization within the AFL at its 1935 convention, creating the original CIO. Within one year, the AFL suspended the unions in the CIO, and these formed the rival Congress of Industrial Organizations (CIO), including the UAW.

When did Auto Union join Volkswagen Group? ›

On January 1, 1965, Volkswagenwerk AG initially acquired a stake of 50.3 percent, giving it effective control over Auto Union, which then became a wholly owned subsidiary of Volkswagen in 1966.

What will happen if Volkswagen becomes unionized? ›

Unionization would raise vehicle costs, undercutting VW's competitiveness relative to auto companies whose workers are not represented by unions.

Can you be forced to join a union in Tennessee? ›

Employees in Tennessee still have the right to form or join a union, and employers cannot retaliate against employees for doing so. However, because Tennessee is a right-to-work state, employees are not required to join or pay dues to a union.

What happened to Volkswagen employees after the scandal? ›

Damage to employees: VW announced in 2016 it would eliminate 30,000 jobs worldwide as it overhauled operations in the wake of the scandal. Damage to brand Germany: This is incalculable, but VW is Germany's largest company, and engineering is Germany's pride, the heart of the country's business brand.

Did VW workers vote to join UAW? ›

On Friday night, autoworkers at the Volkswagen plant in Chattanooga, Tennessee made history. In the face of a coordinated fear-mongering campaign run by elected officials all over the South, workers voted by a 3-to-1 margin to form a union with UAW.

What car manufacturers are not union? ›

We understand that UAW has begun organizing efforts at 13 non-unionized automakers: Tesla, Rivian, Lucid, BMW, Honda, Hyundai, Mazda, Mercedes, Nissan, Subaru, Toyota, Volkswagen, and Volvo Cars.

Have VW employees voted to join the UAW in Tennessee? ›

CHATTANOOGA, Tenn. (AP) — Employees at a Volkswagen factory in Chattanooga, Tennessee, overwhelmingly voted to join the United Auto Workers union Friday in a historic first test of the UAW's renewed effort to organize nonunion factories.

What was Volkswagen response to the scandal? ›

Volkswagen announced plans in April 2016 to spend €16.2 billion (US$18.32 billion at April 2016 exchange rates) in relation to the scandal, and agreed in June 2016 to pay up to $14.7 billion to settle civil charges in the United States.

Did Tennessee's GOP governor says Volkswagen plant workers made a mistake in union vote? ›

(AP) — Tennessee Republican Gov. Bill Lee said Monday that he thinks workers at a Volkswagen plant in Chattanooga made a mistake by voting to unionize under the United Auto Workers in a landslide election but acknowledged the choice was ultimately up to them.

Is VW unionized in Germany? ›

One thing helping the UAW is that unions have much more clout in Germany than in the United States, and the main Volkswagen union there has a seat on the company's board. This is also the only VW plant without union representation.

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