Tag Archive for: Volkswagen

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Volkswagen Workers Make History, Ratify First Union Contract at Major Southern Auto Plant

In a historic victory, Volkswagen workers have voted by 96 percent to ratify their first union contract. The deal locks in 20 percent wage increases, healthcare cost reductions, job security guarantees, an enforceable grievance procedure, and much more. The ratification vote caps a years-long campaign by Volkswagen Chattanooga autoworkers to join the UAW and win a better life with a union contract.

Members of the press are invited to use b-roll and photos from ratification.

“Volkswagen workers have moved yet another mountain,” said UAW President Shawn Fain. “From having the courage to stand up and form their union, to having the backbone to authorize a strike and hold out for a contract that honors their worth, VW workers are leading the way for the entire labor movement and non-union autoworkers everywhere. Welcome to the UAW family.”

The over 3,000 Volkswagen workers in Chattanooga voted overwhelmingly to join the UAW in April of 2024. In October of 2025, after more than a year of negotiations, workers voted to authorize a strike in order to win a fair contract. In early February, they reached a tentative agreement with the company, which has now been ratified.

“This victory shows what happens when workers stand up and refuse to be ignored. We didn’t just win better wages and raise standards at our plant — we forced respect onto the table and got it all in writing,” said Yogi Peoples, a Bargaining Committee member from Assembly. “Our victory here at Volkswagen should send a message to autoworkers everywhere: don’t let management divide you. When workers fight together – united and unafraid — we can beat the odds and win!”

“Southern autoworkers are standing up, and I expect many more to follow Volkswagen’s lead,” said UAW Region 8 Director Tim Smith. “Workers are done being left behind, and VW is just the first step towards justice for autoworkers everywhere. Who are we? U-A-W!”

Volkswagen workers in Chattanooga voted 3-to-1 to join the UAW in 2024, with support from the Volkswagen Works Council and IG Metall. Soon after the victory, workers elected a 20-member negotiating committee made up of their peers. After months of negotiations, the contract marks a breakthrough for nonunion autoworkers and manufacturing workers across the South. The agreement ensures that Volkswagen workers have a legally binding, enforceable contract guaranteeing fair pay, more affordable healthcare, safer working conditions, and clear protections against favoritism.

The details of the agreement are available at UAW.org/VW.

 

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UAW Reaches Tentative Agreement with Volkswagen in Chattanooga, Marking Historic Breakthrough for Southern Autoworkers

Autoworkers at Volkswagen’s Chattanooga plant have won a historic tentative agreement with the company. After making history as the first Southern autoworkers outside the Big Three to join the UAW, the 3,200 workers at Volkswagen Chattanooga have won a tentative contract deal that provides 20 percent across-the-board wage increases, affordable health care, real job security, and more.

After workers voted 3-to-1 to join the UAW in 2024, they elected a 20-member negotiating committee of their peers. After months of negotiations, the tentative deal marks a breakthrough for non-union autoworkers and manufacturing workers across the South. The tentative deal ensures that Volkswagen workers have a legally binding and enforceable agreement that guarantees fair pay, more affordable health care, safer working conditions, and clear protections against favoritism.

“For years, Chattanooga workers were told to settle for less while Volkswagen made record profits. So, the workers stood together and won their union—and now they’ve secured a life-changing first agreement,” said UAW President Shawn Fain. “This deal proves what happens when autoworkers stand up and demand their fair share. People said Southern autoworkers could never form a union or win a union contract. Volkswagen workers in Chattanooga said, ‘Watch this.’”

For workers like bargaining committee co-chair Steve Cochran, a skilled trades worker and co-chair of the Bargaining Committee, the agreement represents a turning point. “A strong contract makes sure promises are delivered. Respect and security shouldn’t be up for negotiation—and now they won’t be.”

The tentative agreement is especially significant given Volkswagen’s recent record-breaking profits. In 2024 alone, the world’s second-largest automaker reported $20.6 billion in profits—even as Chattanooga workers struggled under substandard health coverage and rising out-of-pocket costs.

Key Wins in the Tentative Agreement

  • Major Wage Increases – 20% GWI
    Substantial raises that begin to close the gap with industry standards and reflect Volkswagen’s record profits.
  • Improved High-Quality Health Care with No Increases
    Lower out-of-pocket costs, improved coverage, and protections that ensure no worker must choose between medical care and basic needs.
  • Big Bonuses Initial bonuses equaling $6,550 per worker upon ratification and additional annual bonuses of $2,550 for the life of the agreement. Thousands of dollars of additional compensation for each worker.
  • Job Security Protections
    Strong language against unilateral job cuts, shift reductions, and outsourcing—making sure VW keeps good union jobs in Chattanooga.
  • Stronger Health & Safety Standards
    Enforceable safety rules, dedicated union safety representatives, and a greater worker voice in identifying and fixing hazards on the job.
  • Paid Time Off & Scheduling Protections
    Guaranteed paid leave, fair scheduling requirements, and safeguards against forced overtime and favoritism.
  • Fair Discipline & Grievance Rights
    Clear, enforceable protections against unfair discipline and a transparent, worker-centered grievance process.
  • A Real Voice on the Job
    Rights that ensure workers have a say in day-to-day decisions that shape their work, their safety, and their future.

This historic agreement reflects significant improvements over the company’s last proposal in October, including:

  • New product commitments
  • Enhanced right-to-strike protections
  • Key newly won Job Security agreements, including protections against outsourcing
  • Thousands of additional dollars of annual compensation per worker
  • Key Skilled Trades issues addressed
  • Stronger safeguards against plant closures or the sale of operations

Workers will receive details of the tentative agreement in the coming days, followed by a ratification vote.

“This contract is proof that if you stand up and stick together, you can win a better life,” said Kelcey Smith, a worker in the paint department. “No matter where you live, or where you work, autoworkers deserve a union contract, whether at the Big Three or Volkswagen, from Detroit to Chattanooga. Volkswagen workers are showing the whole country what’s possible.”

The Chattanooga victory signals a profound shift in the Southern auto industry, as workers across the region stand up to global corporations, demand their fair share, and build a future where autoworkers—no matter where they live or what company they work for—have a collective voice and a seat at the table.

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Supermajority of Volkswagen Workers in Chattanooga Vote to Authorize Strike for Job Security and a Fair Contract

Chattanooga, TN – Volkswagen workers in Chattanooga have voted to authorize a strike against the German automaker after over a year of contract negotiations have failed to produce a fair contract offer. It is a historic first, as the first strike authorization vote at a non-Big Three automaker in the modern era.

The move comes after months of unfair labor practices committed by the company, including bad faith negotiations, unlawful intimidation, and the unilateral cutting of jobs at Volkswagen’s only U.S. assembly plant.

Volkswagen made $20.6 billion in profits in 2024, and generates a full 20 percent of its profits in North America. The company can afford to provide a union contract that honors the hardworking autoworkers of Chattanooga.

Volkswagen’s most recent proposal does not include the job security language needed to protect workers from plant closures, outsourcing, or the sale of the Chattanooga facility. These protections cost the company nothing—but mean everything to workers and their families.

A strike authorization gives the elected UAW bargaining committee the authority to call a strike if need be. No strike date has been set, and the UAW bargaining committee has continued to request further negotiations with Volkswagen management, who has refused to meet.

“I don’t want to strike, but if it comes to it, I will,” said Volkswagen worker Mitchell Harris. “Because I feel that all my brothers and sisters of UAW Local 42 deserve respect, to provide a better life for their families, and have job security for us and generations to come.”

“I’m voting yes to get Volkswagen to come back to the table. The majority of the people I know don’t want VW’s ‘final offer.’ They want to keep negotiating, and we are willing to do what it takes to make that happen,” said Taylor Fugate. “We need affordable healthcare and a strong job security statement that leaves no gray area. We also deserve equal standards – Southern autoworkers shouldn’t be treated differently!”

“I’m voting yes because this is the time to show Volkswagen we are serious about receiving industry-standard treatment. Job security’s essential. They could pay us $100 an hour, but it means nothing if they close the plant two weeks into the agreement,” said James Robinson. “I’m hoping this process shows the company we are serious about getting a fair contract. We will show them their offer wasn’t enough, show them we’re willing to stand up to get what we deserve.”

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Volkswagen Workers in Chattanooga to Vote on Strike Authorization

Chattanooga, TN – After more than 13 months of negotiations, Volkswagen workers in Chattanooga, Tennessee have announced a strike authorization vote to take place on Tuesday, October 28 and Wednesday, October 29.

The move comes after months of unfair labor practices committed by the company, including bad faith negotiations, unlawful intimidation, and the unilateral cutting of jobs at Volkswagen’s only US assembly plant.

Volkswagen made $20.6 billion in profits in 2024, and generates a full 20 percent of its profits in North America. The company can afford to provide a union contract that honors the hardworking autoworkers of Chattanooga.

“I don’t want to strike, but if it comes to it, I will,” said Volkswagen worker Mitchell Harris. “Because I feel that all my brothers and sisters of UAW Local 42 deserve respect, to provide a better life for their families, and have job security for us and generations to come.”

“I’m voting yes to get Volkswagen to come back to the table. The majority of the people I know don’t want VW’s ‘final offer.’ They want to keep negotiating, and we are willing to do what it takes to make that happen,” said Taylor Fugate. “We need affordable healthcare and a strong job security statement that leaves no gray area. We also deserve equal standards – Southern autoworkers shouldn’t be treated differently!”

“I’m voting yes because this is the time to show Volkswagen we are serious about receiving industry-standard treatment. Job security’s essential. They could pay us $100 an hour, but it means nothing if they close the plant two weeks into the agreement,” said James Robinson. “I’m hoping this process shows the company we are serious about getting a fair contract. We will show them their offer wasn’t enough, show them we’re willing to stand up to get what we deserve.”

The UAW has been clear that the company’s offer still falls short in four key areas:

1) Job Security: Volkswagen’s proposal does not include the language needed to protect workers from plant closures, outsourcing, or the sale of the Chattanooga facility. These protections cost the company nothing—but mean everything to workers and their families.

2) Affordable Healthcare: Volkswagen’s proposal falls far short of the affordable, high-quality healthcare that’s standard for 150,000 UAW autoworkers across the country. Workers deserve equal treatment, not higher costs.

3) Wages That Keep Up With the Cost of Living: Volkswagen can solve this today by simply signing off on the proposal they already offered — so workers’ paychecks don’t lose value as costs rise.

4) Respect and Dignity on the Job: Volkswagen workers are fighting for a union contract that ensures members can use their earned PTO, are protected from punitive drug testing, and have adequate breaks to recover from the physical demands of the job.

The UAW sent a counterproposal to the company on October 15 addressing 14 remaining critical items centered on these four pillars: job security, fair wages, affordable healthcare, and respect and dignity on the job.

If Volkswagen accepts the counteroffer, the union will recommend ratification. If not, members will prepare for a strike authorization vote and further action as needed.

A strike authorization gives the elected UAW bargaining committee the authority to call a strike if need be. No strike date has been set, and the UAW bargaining committee has continued to request further negotiations with Volkswagen management, who has refused to meet.

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Federal Agency Finds Volkswagen to Have Broken Labor Law, Orders Immediate Recognition of Union

In a massive rebuke of the German auto giant, the National Labor Relations Board has found Volkswagen to have egregiously violated the law in intimidating, disciplining, and threatening workers at its Parts Distribution Center in Cranbury, New Jersey earlier this year.

After workers organized to join the UAW, the company illegally threatened and coerced workers for exercising their federally-protected right to organize a union.

The automaker, which prides itself on its “social charter” that supposedly enshrines workers’ rights in its corporate governance, is ordered to recognize the UAW as the union of the over 150 workers involved. In addition, the Board will seek a 10(j) injunction to bring the company to the bargaining table.

“These workers did exactly what you’re supposed to do if you want a better life on the job, and Volkswagen treated them like dirt,” says UAW President Shawn Fain. “Because these badass workers refused to give up, they were able to overcome the company’s harassment, intimidation, and illegal conduct, and will now have a seat at the table. Welcome to the UAW. And Volkswagen, we’ll see you at the bargaining table.”

“We stood up because we know we deserve better from this multibillion-dollar company,” said Sergio Sumano, Jr., a warehouse worker with 7 years at the facility. “We stuck it out because we knew our cause was right. This is about a better life for me and my family, and for all of us here who make Volkswagen run. We are the UAW.”

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New UAW Analysis Shows U.S. Can Create Tens of Thousands of Auto Jobs Using Existing Capacity

Detroit, MI — Today, the UAW released a new deep-dive report, Unlocking the Potential of U.S. Auto Manufacturing Capacity, revealing that America’s auto industry has the infrastructure and skilled workforce to build millions more vehicles — and create tens of thousands of good-paying union jobs — if companies invest at home instead of offshoring production and funneling more money to Wall Street.

In 2024, the United States had the capacity to manufacture over 14.7 million vehicles at active, existing plants, but produced only 10.2 million, leaving 4.5 million units of unused capacity. Plants across the country are underutilized because of high-exploitation race to the bottom practices that kill U.S. jobs and suppress wages for workers overseas, with the difference going straight to Wall Street.

Instead of using existing capacity, the Big Three and the rest of the auto industry loot the Rust Belt for stock buybacks and special dividends. Revitalizing the auto industry’s dormant capacity could create up to 90,000 new U.S. auto manufacturing jobs in short order, according to UAW estimates.

“We don’t need to break ground on a single new plant to rapidly grow auto manufacturing capacity — it’s already right in front of us, in the plants we’ve built, the skills of our members, and the communities that depend on these jobs,” said UAW President Shawn Fain. “Instead of offshoring jobs to low-wage, high-exploitation countries, auto companies must invest here at home and rebuild the middle class with union labor.”

The analysis shows that major automakers — GM, Ford, Stellantis, and Volkswagen — have steadily cut U.S. production even as they expanded output in Mexico. Since 2015, these companies have reduced annual U.S. vehicle production by 1.8 million units, hitting communities nationwide with plant closures, layoffs, and underutilized facilities.

“The working class built the auto industry — and we’re ready to build its future,” Fain continued. “Auto companies should be using this moment to scale up and add good jobs by investing in workers instead of Wall Street.”

View the full report here: https://uaw.us/ExcessCapacityPaper

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UAW Supports Medicare for All

Every working-class person deserves decent health care. No one should have to choose between seeing a doctor and putting food on the table. But that’s exactly what our current health care system does. It robs workers of dignity, drains union power at the bargaining table, and leaves too many of us behind. That’s why the UAW supports the Medicare for All Act—because no one should have to rely on the generosity of their boss to see a doctor or get the care they need.

Autoworkers know this all too well. During the Great Recession, Big Three automakers slashed retiree health care for new hires as part of bailout-era concessions. Now, a new generation of autoworkers are retiring years before they qualify for Medicare—but without employer-provided health care. As a result, they’re left in limbo, scraping by or skipping care entirely, too old to work but too young to die. Meanwhile, the companies are raking in record profits, lining shareholders’ pockets, and abandoning the very workers who make this industry run.

We need a system where everyone, union or not, has access to high-quality, comprehensive health care. Right now, unions like the UAW are forced to spend massive bargaining power just to defend what should be a basic human right. Companies try to force us to leave wage gains, retirement security, and work-life balance on the table just for our members to be able to have health insurance. Imagine what we could win if we didn’t have to fight tooth and nail just to see a doctor.

Take Volkswagen. The company made $92.4 billion in operating profit over the last four years and hauled in $351 billion in revenue in 2024 alone. Yet in Chattanooga, where workers are bargaining for their first contract, 73% say they’ve had to choose between health care and essentials like rent or food—or gone into debt or bankruptcy to afford medical bills. This is corporate greed at its ugliest: executives cashing checks while the working class gets left behind. And it’s happening across the industries the UAW represents.

We commend Senator Sanders, Representative Jayapal, and Representative Dingell for their leadership on this legislation and applaud vocal champions like Representative Ocasio-Cortez who are pushing to make Medicare for All the law of the land. Because until we take profit out of our health care system, workers will continue to pay the price—with their paychecks, their health, and their lives.

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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.

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In a Victory for Autoworkers, Auto Tariffs Mark the Beginning of the End of NAFTA and the “Free Trade” Disaster

This afternoon, the Trump administration announced major tariffs on passenger cars and trucks entering the U.S. market, marking the beginning of the end of a thirty-plus year “free trade” disaster. This is a long-overdue shift away from a harmful economic framework that has devastated the working class and driven a race to the bottom across borders in the auto industry. It signals a return to policies that prioritize the workers who build this country—rather than the greed of ruthless corporations.

“We applaud the Trump administration for stepping up to end the free trade disaster that has devastated working class communities for decades. Ending the race to the bottom in the auto industry starts with fixing our broken trade deals, and the Trump administration has made history with today’s actions,” said UAW President Shawn Fain. “But ending the race to the bottom also means securing union rights for autoworkers everywhere with a strong National Labor Relations Board, a decent retirement with Social Security benefits protected, healthcare for all workers including through Medicare and Medicaid, and dignity on and off the job. The UAW and the working class in general couldn’t care less about party politics; working people expect leaders to work together to deliver results. The UAW has been clear: we will work with any politician, regardless of party, who is willing to reverse decades of working-class people going backwards in the most profitable times in our nation’s history. These tariffs are a major step in the right direction for autoworkers and blue-collar communities across the country, and it is now on the automakers, from the Big Three to Volkswagen and beyond, to bring back good union jobs to the U.S.”

BRINGING BACK THOUSANDS OF GOOD, UNION AUTO JOBS

With these tariffs, thousands of good-paying blue collar auto jobs could be brought back to working-class communities across the United States within a matter of months, simply by adding additional shifts or lines in a number of underutilized auto plants. Right now, thousands of autoworkers are laid off at Ford, General Motors, and Stellantis following recent decisions by auto executives to ship jobs to Mexico.

Across a dozen Big Three auto plants that have seen major declines, production has fallen by 2 million units per year in the past decade, while millions of vehicles sold here are made with low-wage, high-exploitation labor abroad. That means auto companies that have made record profits get to drive wages down further for both Mexican and U.S. workers while Wall Street and the corporate class get record payouts.

Those plants include Ford Flat Rock Assembly (Flat Rock, MI), Ford Louisville Assembly (Louisville, KY), Ford Ohio Assembly (Sheffield, OH), Ford Michigan Assembly (Wayne, MI), GM Fairfax (Kansas City, KS), GM Lansing Grand River (Lansing, MI), GM Factory Zero (Detroit & Hamtramck, MI), GM Spring Hill (Spring Hill, TN), Stellantis Warren Truck Assembly (Warren, MI), Stellantis Toledo Assembly (Toledo, OH), Stellantis Sterling Heights Assembly (Sterling Heights, MI), Stellantis Jefferson North Assembly (Detroit, MI). The same pattern can be seen in the heavy truck industry, whether at Freightliner in North Carolina, Navistar in Ohio, or dozens of other employers across the economy.

The economic benefits of filling these plants back up with product and good auto jobs would be enormous and have a cascading effect throughout communities from Michigan to Tennessee.

At Volkswagen in Chattanooga, Tennessee, the company recently violated labor law by unilaterally announcing the elimination of a shift during first contract negotiations. Volkswagen makes 75% of their North America product in Mexico for $7 an hour, and over 40% of their U.S. sales are produced by workers earning poverty wages in Mexico. That shift should be restored immediately as production shifts back to the US.

At Warren Truck Assembly Plant in Warren, Michigan, for example, over 1,000 autoworkers are laid off while the plant sits underutilized and $100,000 Stellantis trucks are built in Mexico for $3 an hour. These layoffs were announced less than six months ago and could be undone. Those jobs could be brought back to Michigan immediately with well-designed auto tariffs.

In addition to idle capacity at existing plants, there are plants that stand empty and with moderate retooling could easily employ tens of thousands of workers. Lordstown Assembly sits empty in Lordstown, Ohio, and employed nearly 10,000 autoworkers when NAFTA was passed. Belvidere Assembly is slated to reopen with around 1,500 jobs; as recently as 2019, the plant employed 5,000 autoworkers.

The Big Three have closed or spun off 65 facilities in the past 20 years. There is plenty of work to go around at profitable margins, and plenty of working-class people looking for good, union jobs. With a serious tariff regime, we can incentivize the Big Three and the rest of the auto industry to reinvest in the American autoworker, and America’s blue-collar communities.

WHAT THE WORKING CLASS NEEDS ON TRADE

Every time an autoworker dares to ask for fair pay, a decent retirement, healthcare, or work-life balance, the automakers threaten their job by exploiting a broken trade system that is set up to intimidate and threaten workers on both sides of the border.

The UAW has encouraged the Trump administration to take clear, aggressive action to bring back good, union auto jobs. We are heartened by the significant measures they have announced today, and we urge the administration to take similar action to protect and reshore the heavy truck sector. Beyond tariffs, a continued, dramatic shift in our country’s trade agreements and economic policies will be necessary to end the free trade disaster.

The next step is to immediately begin renegotiation of the US-Mexico-Canada Agreement (USMCA), which has only perpetuated NAFTA’s harmful effects by increasing the trade deficit with Mexico and allowing automakers to offshore U.S. jobs and drive a race to the bottom.

In a new trade deal, autoworkers have some simple demands:

  • A significant number of cars that are sold in the U.S. should be made in the U.S., with strong wages and good working conditions like those that generations of UAW autoworkers have fought and died for.
  • Companies must not be allowed to close factories and ship jobs to high-exploitation, low-wage countries, and to pad already-massive profits by driving a race to the bottom among autoworkers. This includes a North American minimum wage to significantly raise pay and benefits for Mexican autoworkers, along with stronger protections for labor rights and penalties for offshoring, so that workers are no longer forced to compete with one another over crumbs while the automakers walk away with a bigger and bigger slice of the pie.
  • Fix the auto parts supply chain, following the same principles: fair wages and benefits for all, and an increase in American-made parts for American-assembled and American-sold vehicles.

We can fix our broken trade deals to benefit workers. But we must be consistent, send clear signals to the auto industry, and make sure that working-class people – who have paid the price for so-called “free trade” for 30 years – don’t pay the price for this transition back to high-road manufacturing jobs.

As they shift their supply chains and investments to the US, auto companies that have enjoyed years of record profits should absorb the cost of these tariffs rather than passing them on to consumers, and the UAW would support legislative or regulatory action requiring them to do so. Workers must be held harmless during any disruption that accompanies the reshoring process, with financial support from the federal government if necessary.

And finally, the working class can’t wait. The auto companies have been given time to plan, and now it’s time to act.

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Volkswagen Chattanooga Workers Slammed with Crippling Health Care Costs—One in Three Struggles to Afford Auto Giant’s Subpar Insurance

Chattanooga, TN – Days after Volkswagen, the #2 automaker in the world, announced making $20.6 billion in profit in 2024, a new UAW survey of VW workers in Chattanooga reveals the devastating financial toll of VW’s substandard U.S. health care offerings.

A new comprehensive survey of nearly 1,800 Volkswagen’s Chattanooga workers paints a stark picture of a workforce burdened by inferior health care benefits and skyrocketing out-of-pocket expenses that not only lag industry standards, but have also contributed to widespread financial hardship, debt, and, in many cases, a decision to forgo necessary medical care altogether.

Nearly three out of four (73%) Volkswagen Chattanooga workers reported either being forced to choose between paying for medical care and other essential expenditures like rent and food or having borrowed money or declared bankruptcy to cover medical expenses; a rate that rises to four out of every five parents and caregivers with children on a VW health insurance plan.

The full report is available HERE. The 2025 health care survey of VW Chattanooga workers paints a dire picture of the real-world impact of the company’s substandard plans. Key findings include:

  • 67% reported being forced to choose between paying for medical care and other basic necessities, such as rent, utilities, and food.
  • 58% admitted to borrowing money—via credit cards, loans, 401(k) withdrawals, or from family and friends—or filing for bankruptcy due to medical expenses.
  • 57% currently have outstanding medical debt, including accounts in collections and wage garnishments.
  • 18% of survey respondents rely on publicly-funded TennCare, Tennessee’s Medicaid program, to insure their children – allowing VW to shift their responsibility to employees on to TN taxpayers.
  • 29% have faced financial hardship specifically due to medical bills from a workplace injury.
  • 20% have been forced to take on a second job simply to pay for their medical bills.

In addition to completing the survey, hundreds of VW workers surveyed shared personal stories about being forced to skip urgently necessary medical care and the extreme financial strain they’ve experienced due to VW’s lower standards.

  • One VW worker in the Battery Department shared that: “My wife is disabled so I am the only one working. She goes to the doctor when she needs to, but I have dental work that I have needed for almost 2 years and have not done due to the expense.”
  • A VW assembly worker reported: “I have had to forgo medical care due to the costs even though I pay for insurance, and I pay over a hundred dollars a month for my prescription.”
  • Another VW assembly worker said: “I went to the ER due to an illness last year—I couldn’t breathe. Bill was way too expensive, and I received 3 to 4 total. It hurt my finances tremendously as I had to figure out how to pay for my other bills that have gone up due to inflation.”
  • “At my last job I had better health care where I only had to pay $25 to see my primary doctor versus now it costs me $75 a visit until I hit my deductible,” said another VW worker. “Then two years ago I had a health scare where I had to go see a hematologist and when I got the bill I had to pay $500 out of pocket because I did not meet my deductible yet – versus at my last job, when I had to see a specialist, it only cost me a dime, and I was working for a much smaller company than Volkswagen.”
  • One VW worker said, “I’ve worked other jobs to make sure I can get my medical bills paid, but not now. Now I barely get my deductible paid and I don’t get to use my insurance because it’s time to start a new year, so I’m paying the deductible every year for my doctors’ visits and paying my monthly insurance for insurance I don’t get to use because of the deductible I have to reach before my insurance will cover anything. I have to have something major come up and pay it off before my insurance starts to cover my bills. It’s ridiculous and not right. I’m used to just paying a co-pay and everything else is covered, but when I started at Volkswagen all that changed and I started paying a lot out of my pocket. Yea I make more money here, but when you add in what I pay in for medical, I make less than I did at my last jobs.”

“Volkswagen should be ashamed that the U.S. workers who have helped build their massive profits are being forced to choose between putting food on the table and having health insurance,” said UAW President Shawn Fain. “VW is the #2 automaker in the world, but they aren’t meeting the union auto standards in America – even of smaller and less profitable employers in the same state.  Although VW espouses respect for worker rights, they have egregiously violated federal U.S. labor law with an illegal shift reduction attempt in Chattanooga, where they should be ramping production up, not cutting it down. The CEO of VW got $11 million last year, and their shareholders got billions; now, American workers are demanding the fair standards and excellent health coverage we deserve.”

Volkswagen’s U.S. workforce faces lower health care and workplace safety standards compared to the benefits provided to employees in other countries, effectively creating a second tier of workers in the American South. Survey data reveals that VW’s health plan is so costly and inadequate that more than one in ten workers opt out entirely, with some stating they simply cannot afford it. Many employees also noted that Volkswagen lags behind its competitors in providing quality health care, despite the company’s substantial profits.

“Volkswagen workers should not have to start a GoFundMe in order to pay their medical bills,” said Amanda Muellemann, an assembly worker who could not afford a necessary surgery and had to go to extreme lengths to pay for her care.

In 2024, Volkswagen reported $20.6 billion in profits, bringing their four-year profit total to $92.4 billion — a 38% increase. Despite this, the 4,000 workers who build its vehicles in Chattanooga are still waiting for a fair contract that brings them up to par with industry standards – and are using the fight for the first-ever union contract at a foreign car manufacturer in America as an opportunity to force VW to reinvest in their U.S. workforce.

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