VW’s 20% Raise And Bonus Offer Could Make or Break US Union Deal

  • Over a year after unionizing, VW workers in Chattanooga still lack a contract.
  • VW just presented its “final” offer, implying a take-it-or-leave-it stance.
  • It includes a 20% wage increase, a cost-of-living allowance, and a $4K bonus.

Last year, Volkswagen workers in Chattanooga, Tennessee voted to join the UAW. It was a big win for the union, which had been fighting to establish a presence in the south. Since then, things haven’t exactly been going smoothly.

More: UAW Accuses VW Of Unfair Labor Practices After Cutting Production Shift

That’s clear today as Volkswagen recently took the unusual step of publicly addressing their “final contract offer to the UAW.” In a brief statement, the company said negotiations have been going on for nearly a year and their latest offer will be their last.

What’s On Offer

Volkswagen framed the deal as a strong show of support for employees. The offer includes a 20% wage increase, a first-ever cost-of-living allowance, and a $4,000 ratification bonus. On top of the financial incentives, Volkswagen said the contract would give employees industry-leading paid time off, additional holidays, and reduced health care costs. The company also promised “enhanced job security” as well as “other employee-requested improvements.”

Volkswagen closed out their statement by saying the offer “balances employee priorities with the economic challenges facing our industry, ensuring we can continue to invest and grow in Chattanooga.” They then went on to encourage employees to vote in favor of the contract.

VW’s 20% Raise And Bonus Offer Could Make or Break US Union Deal

A Silent Union Front

The UAW has been surprisingly quiet and the union’s last update was posted on May 9. That’s over four months ago and, at the time, the bargaining committee said they were looking for “nothing less” than what other unionized autoworkers get in the United States. They went on to claim that “in every other country Volkswagen has an assembly plant, they offer higher wages/benefits than the industry standard, except for here.”

That sentiment appears to remain unchanged judging by posts on the Volkswagen Workers of Chattanooga Facebook group. This could potentially lead to a showdown if the company’s latest offer is indeed final, but only time will tell.

VW’s 20% Raise And Bonus Offer Could Make or Break US Union Deal

The Auto World

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