One Year Later: VW Workers Celebrate Historic Breakthrough and Look Ahead to Locked-In Gains in First Union Contract

CHATTANOOGA, TENN. — One year after making history as the first Southern autoworkers outside the Big Three to unionize, Volkswagen workers in Chattanooga are preparing to secure a landmark first contract—one that guarantees, in writing, the better wages, benefits, and workplace protections they fought to win.

No longer at the mercy of Volkswagen’s shifting promises, workers are demanding a legally binding agreement that puts their priorities—fair pay, affordable health care, paid time off, safer working conditions, and protections against favoritism—into writing. Since their union victory in April 2024, they have elected a 20-person bargaining committee, which has been negotiating contract language that reflects the demands of the 4,000-member workforce.

For workers like Steve Cochran, a worker in the skills trades, the union is about securing a better future. The co-chair of the Bargaining Committee says a strong contract ensures that promises are delivered—and that respect and security are no longer up for negotiation.

Members are fighting for a contract that meets the standard already established across the U.S. unionized auto industry—and that matches Volkswagen’s record-breaking profits.

Just days after Volkswagen, the world’s second-largest automaker, reported $20.6 billion in profits for 2024, a new UAW survey of nearly 1,800 Chattanooga workers reveals the crushing financial impact of the company’s substandard U.S. health care. The results show a workforce plagued by high out-of-pocket costs and inadequate coverage—nearly 73% of respondents said they’ve either had to choose between medical care and essentials like rent or food, or gone into debt to afford care. That number climbs even higher among parents and caregivers with children on VW’s insurance plan, exposing the human cost of the company’s failure to meet industry standards.

Over the past four years, Volkswagen has funneled $29.9 billion to shareholders through dividends and stock buybacks. In response, Chattanooga workers are demanding their fair share—through real improvements in wages, benefits, safety, job security, and rights on the job. But this fight goes beyond economics. They are pushing for stronger safety standards, fair scheduling, paid leave, protection from unfair discipline, and a true voice in the decisions that shape their daily lives. After more than a decade of operating without a union, workers say it’s time to end the era of exploitation that has defined the Chattanooga plant since it opened in 2011.

But as bargaining has progressed, Volkswagen has escalated its anti-union tactics and shown flagrant disregard for U.S. labor law. In March, the UAW filed federal labor charges against the company for unilaterally cutting jobs and making major changes without negotiating with the union, in violation of federal law. This attack on American jobs and workers’ rights underscores the company’s disrespect and preference for low-wage production abroad.

Today, Volkswagen manufactures 75% of its North American vehicles in Mexico, where workers earn roughly $7 an hour. This business model relies on exploitation, suppresses wages across borders, and undermines American manufacturing.

Just weeks after the illegal shift reduction announcement, VW management locked workers out of their own bargaining session, calling security and shutting the doors on union members who came to observe and share their experiences. In response, workers took to the streets, holding a rally to demand respect and a fair contract.

UAW President Shawn Fain praised the Chattanooga workers for igniting a movement to raise standards for the working class across the South.

“VW workers made history a year ago—and now they’re making it count,” said Fain. “They stood up, took on the boss, and won their union. They’re fighting for a contract that reflects the power they have built and locks in real raises, real rights, and real respect. This is what happens when working-class people stand up together.”

The Chattanooga workers’ fight is not just about one plant—it’s part of a growing working-class movement to take back power, hold global corporations accountable, and build a future where all autoworkers, no matter where they are, have a collective voice to shape their working conditions and demand a share in the prosperity they create.