Tag Archive for: Volkswagen

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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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UAW Files Federal Labor Charges Against Volkswagen for Violating Workers’ Rights in Chattanooga

Chattanooga — The UAW has filed federal labor charges against Volkswagen for violating U.S. labor law at its Chattanooga, Tennessee plant. The company is attempting to cut jobs and make major changes without first negotiating with the union, as required by law.

In a statement, UAW President Shawn Fain said:

“Nearly a year ago, thousands of Volkswagen workers in Chattanooga voted to join the UAW, to win the respect and dignified life that union autoworkers at the Big Three have enjoyed for generations.

Since then, the company has failed to meet the basic standard at the bargaining table that 150,000 American autoworkers have won at Ford, General Motors, and Stellantis.

Volkswagen is the second most profitable automaker in the world. On Tuesday, the company reported over $20 billion in profits in 2024. And on Wednesday, they announced their intention to cut a shift at their single American plant, in Chattanooga, Tennessee.

This is a company that makes 75% of their North American products in Mexico, paying highly exploited workers around $7 an hour to sell cars for tens of thousands of dollars in the US. They do this to avoid paying a living wage and drive a race to the bottom in the auto industry. It’s bad for workers everywhere.

And instead of coming to a fair agreement for their American autoworkers in Tennessee, Volkswagen is choosing to attack American auto jobs.

The UAW has notified the Trump Administration of Volkswagen’s unacceptable, anti-union, anti-worker, and anti-American conduct. It is no accident that they want to ram through a layoff in America in the days before expected auto tariffs take effect, as they profit from high exploitation labor in Mexico.

The 4,000 autoworkers in Chattanooga deserve better. America deserves better. And the UAW is going to fight like hell to deliver for Chattanooga, for Volkswagen autoworkers, and for the whole working class.”

This latest charge highlights a continuing trend of union-busting tactics by Volkswagen aimed at silencing American workers. The UAW is committed to holding the company accountable and protecting workers’ rights on the job.

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Breaking: Union Drive for Volkswagen Workers Goes National As New Jersey VW Workers File to Join UAW

Cranbury, NJ – The push to unionize Volkswagen has gone national, as VW autoworkers at a large distribution center in New Jersey have reached supermajority support and just became the first VW workers on the East Coast to file to unionize with the UAW. They join more than 4,000 VW workers in Chattanooga, TN, who won their union with UAW nearly a year ago. The New Jersey facility is now VW’s second in the country to organize with the UAW in the past 12 months.

“Every autoworker in America deserves a union,” said UAW President Shawn Fain. “Volkswagen workers made history in Chattanooga last April, and now, New Jersey VW workers are stepping up. We won’t stop until every autoworker who wants a union has one.”

“We saw what was going on at the Big Three, and then Volkswagen workers in Tennessee won their union despite pushback from management,” said Sergio Sumano Jr, a warehouse worker with 7 years at the Volkswagen PDC/RDC in New Jersey. “Now, it’s our turn. We deserve fair pay, affordable benefits, and a secure retirement – just like every other unionized autoworker in the U.S. If Volkswagen wants to operate in America, they need to treat us with the same dignity as their workers overseas.”

“Operating in New Jersey means operating with full respect for labor law and the rights of working people,” said Congresswoman Bonnie Watson Coleman (NJ-12), who represents the congressional district in New Jersey where the VW workers filed and many are constituents.  “I’m proud to stand with the inspiring New Jersey Volkswagen workers unionizing with UAW and telling corporate power that working people will not be brought to heel.”

“Volkswagen has been getting away with exploiting their U.S. workers for far too long,” said UAW Region 9 Director Dan Vicente. “It’s clear the balance of power is shifting. Autoworkers across the country witnessed workers demanding their due during the Stand Up Strike. When they see what can be won when we unite together, anything is possible.”

After winning their union on April 19, 2024, VW workers in Chattanooga are now fighting for a first agreement that reflects unionized auto manufacturing standards in the U.S. as well as the company’s record-breaking profits. Volkswagen lags behind its competitors in wages and benefits and treats its U.S. workers worse than its foreign workforce. With the one-year anniversary of the workers’ union win approaching, pressure is mounting at the bargaining table.

“Volkswagen racked up $24.4 billion in profits in 2023 by paying their large U.S. workforce poverty wages with shameful workplace benefits and conditions,” said Steve Cochran, a UAW member and 14 year skilled trades worker at Volkswagen Chattanooga. “Volkswagen must be held to account for failing for decades to provide good jobs for U.S. workers, and the only way that’s going to happen will be by workers in VW, Tennessee, and elsewhere standing together to take action and demand better. Since we won our union, we’ve won key protections at work including the right to have a voice on the issues that matter most – and now we’re working to negotiate a historic first contract that will finally give Volkswagen workers in the South the same good union standards workers have won at Stellantis, GM, and Ford.”

Volkswagen PDC and RDC workers in New Jersey distribute aftermarket parts across the country. They will be the first Volkswagen distribution workers to join UAW; in Tennessee, the Volkswagen workers assemble cars inside auto plants. Regardless of location, job, or employer, UAW members welcome all Volkswagen and other non-union workers across the country to join the fight for economic and social justice, in the auto industry and beyond.

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Higher Wages, Affordable Health Care, Retirement Security: Volkswagen Chattanooga Workers Lay Out First Contract Demands in New Series of Videos from the UAW

CHATTANOOGA – Today, the UAW released a new video featuring members at Volkswagen Chattanooga who are negotiating their first union contract with the German automaker. The video, titled “Higher Wages,” is the latest installment in an ongoing video series highlighting the members’ key contract demands.

Determined to raise standards and improve conditions at their plant, the 4,000 UAW members at Volkswagen are fighting for a first agreement that reflects unionized auto manufacturing standards in the U.S. as well as the company’s record-breaking profits. In 2023 alone, Volkswagen reported $24.4 billion in earnings. Workers are demanding a contract that includes better wages, stronger benefits, and protections comparable to those won by U.S. unionized auto workers. The latest bargaining update and a chart comparing the current VW proposal with contracts at the Big Three can be accessed here.

Building on the momentum of their historic union victory, the members, along with the 20-person bargaining committee, are working to secure comprehensive contract language that delivers real gains and ends the era of exploitation that Volkswagen has maintained since opening the plant in 2011.

Beyond higher wages and affordable health care, members are bargaining over a broad set of workplace issues, including stronger safety standards, fair scheduling policies, paid leave, protections against unjust discipline, and a meaningful voice in workplace decision-making. Their goal is to ensure that every aspect of their working conditions is fair and rewards their hard work.  

The video series can be accessed here.

“The fact that the shareholders made $12.7 billion last year and 34% of that goes to one family. And I’m just trying to afford groceries and my bills at the same time,” explains VW Bargaining Committee member Caleb Michalski. “I’ve never had a desire to be rich. I just want to be able to provide for my family and do normal American Dream stuff. That’s it.”

“Pay? We should be making more than what we’re making,” says VW Assembly Logistics worker Letonja Berry. “We not asking for nothing that they don’t have. We all know that it’s corporate greed.”

“I have three kids,” describes Bargaining Committee member Billy Quigg in another video about health care. “Is their care covered? Am I at the right doctor? How is that going to impact me financially? I should never have to worry about that. I work for the world’s largest auto manufacturer.”

“For me, at my age, it’s making sure you’re taken care of after you leave Volkswagen,” says Bargaining Committee member Vicky Holloway in a video about retirement. “Making sure there is life after Volkswagen.”

The list of video demands available from Volkswagen Chattanooga workers includes:

  • Higher Wages
  • Health Care
  • Retirement
  • Health & Safety
  • Wages
  • Fair Attendance & PTO

One of the most urgent concerns raised by workers is the lack of affordable health insurance. Unlike UAW autoworkers across the country, including in the south, who have won fully paid family health care with low out-of-pocket copays, VW’s employee health insurance is not meeting the needs of Chattanooga workers and their families.

In recent weeks, members have been engaging in one-on-one conversations with coworkers to complete a health care needs assessment. Again and again, coworkers share stories of financial hardship and even bankruptcy when accessing basic, necessary medical care. Some chose to opt out because VW insurance is not affordable.

Bargaining with Volkswagen kicked off last September, and the members say they’re still far apart on fundamental demands such as wages and health care and want to see management step up and address their concerns in their future proposals. The latest bargaining update and comparison chart can be accessed here.

The UAW bargaining committee is taking action to engage the membership. In conversations at the gates and in informational meetings, they’re hearing from their coworkers: we should not settle for anything less than a fair contract that reflects the true value of our labor – and we’re preparing to do what it takes to get what we’re due.

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Fall 2024 Issue of Solidarity Magazine is Now Online!

The new Fall 2024 issue of Solidarity Magazine is now available. 

You can download it here, and share it with fellow UAW members.

In this issue:

  • VOLKSWAGEN WORKERS MAKE HISTORY: The recent union election victory at Volkswagen in Chattanooga, TN, marks a monumental achievement after years of persistent organizing.
  • MERCEDES WORKERS: After workers at Volkswagen won their union, workers at Mercedes were organizing to do the same. Workers courageously stepped up to fight for the voice they knew they deserved.
  • STAND UP BMW: In July, a small but mighty group of BMW workers at the distribution center in Palmer Township, Pennsylvania, pushed back on one of the largest auto manufacturers in the world — and won!
  • DAIMLER TRUCK: After mounting a massive campaign and building a serious strike threat against Daimler Truck this spring, UAW members at the multibillion-dollar manufacturer won a historic agreement by uniting across local unions — a first — and shifting to one common wage grid.
  • 2024 PRESIDENTIAL ELECTION: In 2024, we’re taking our Stand Up playbook and bringing it to the political scene because the same bosses who beat us up on the job and fight us at the negotiating table are hell-bent on owning our political system as well.
  • And more!
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Volkswagen Workers Outline Their Demands in New UAW Video as First Contract Campaign Begins

CHATTANOOGA— Today, the UAW released a new video outlining the priority demands of Volkswagen workers as contract negotiations between the union and the German automaker begin for a first agreement at the Chattanooga plant.

The video can be accessed here, and the media is invited to use the footage.    

After a historic victory earlier this year, where 4,300 Volkswagen workers voted almost 3-to-1 to join the United Auto Workers (UAW), union members are now campaigning for a strong first contract. On September 19, the 20-person elected bargaining committee kicked off negotiations with Volkswagen, aiming to win a first agreement that raises standards and includes wages, benefits, and protections on par with those secured by autoworkers in unionized plants.

“I got the carpal tunnel scar right there,” describes Josh Epperson, highlighting the need to prioritize health and safety protocols in their contract. “We have jobs in there that we know are going to hurt people. So why haven’t we done anything about that?”

The vote to join the UAW this past spring marked a watershed moment in the labor movement, with Volkswagen workers in Chattanooga becoming the first Southern autoworkers outside the Big Three to unionize. Now, they are channeling that momentum toward bargaining for a contract that delivers meaningful improvements to their work and lives.

With the success of recent Big Three and Daimler Truck negotiations as inspiration, Volkswagen workers are setting a powerful example of what’s possible when workers come together to demand fairness at work.

“I have tears in both my rotator cuffs, and I have to have surgery,” says Yolanda Peoples, a UAW bargaining committee member. “If we’re gonna win the contract that we deserve, it’s not just the bargainers. We need everyone involved.”

With representation across every department and shift, the bargaining committee has been meeting for weeks to synthesize survey data about members’ aspirations and goals for the first agreement. Supported by veteran negotiator Chuck Browning, UAW Vice President, the group has been reviewing company and industry data and contract language from agreements with Ford, General Motors, and Stellantis.

Full transcript featuring workers from the Volkswagen Chattanooga bargaining team: 

I realized the first day, when they told me how much we were making, we need a union. I said if you need a Norma Rae, I’m your girl.

GM and Stellantis. Workers got incredible gains, but their companies aren’t nearly as big as Volkswagen.

It’s up to everybody in that plant to come together and make sure we get what we deserve.

Safety is probably the biggest thing. I mean, I don’t want to worry about losing a limb or breaking a bone.

The company denies injuries until they can’t anymore. I needed carpal tunnel surgery for six years, and they said that it wasn’t work related because it was my non-dominant hand. They told us to use our non-dominant hand.

I’m currently sitting here, right. And I have tears in both my rotator cuffs, and I have to have surgery.

I got the carpal tunnel scar right there. We have jobs in there that we know are going to hurt people. So why haven’t we done anything about that?

The PTO is a big deal.

I went to medical. ‘Oh, you got Covid, you got to go home.’ They turned my badge off. I was gone for about five days. And I realized when I came back, I had all these points. I’m like, why do I got all these points? I didn’t send myself home. Medical sent me home.

I take my PTO when I want it. Not when you want me to take it.

For me, a big deal is retirement. Job security is a big deal. I’m 52.

I have three kids. Is their care covered? Am I at the right doctor? How is that going to impact me financially? I should never have to worry about that. I worked for the world’s largest auto manufacturer.

And when you’re talking about one company making more money than members of the Big Three do, and you see what they provide their employees … come on.

With a contract, it changes the power dynamic completely. They’re in the business to make money. They’re not they’re not in the people business. That’s what the unions for.

The bargaining team is only one part of this. We need the support of everybody in that plant. We all stood up together to win the union. Let’s all stand up together now to win a contract.

If we’re gonna win the contract that we deserve it’s not just the bargainers. We need everyone involved.

It involves 4,311 people that are in that plant every day.

Sign your name to the members’ demands. Talk to your coworkers.

That’s how we won our union and that’s how are we going to win the best contract that you ever seen?

Better than Ford, better than GM. Everybody … Chattanooga! That’s how we going to get it.

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Building on Historic Union Victory, Volkswagen Workers in Chattanooga Rally to Win Strong First Contract

CHATTANOOGA – After an historic victory earlier this year, where Volkswagen workers in Chattanooga voted almost 3-to-1 to join the United Auto Workers (UAW), union members are now turning their attention to securing a strong first contract. On September 19, workers will begin negotiations with Volkswagen, aiming to win a first agreement that raises standards and includes wages, benefits, and protections on par with those secured by autoworkers in unionized plants.

The vote marked a watershed moment in the labor movement, with Volkswagen workers in Chattanooga becoming the first Southern autoworkers outside the Big Three to unionize. Now, they are channeling that momentum toward bargaining for a contract that delivers meaningful improvements to their work and lives.

“Our victory in April was just the beginning,” said Samuel Gallardo, an assembly line worker at Volkswagen. “Now we are focused on winning a contract that reflects the hard work and dedication of every worker here. We’ve shown that when we stand together, we win—first our union, and soon a contract that guarantees higher wages, better benefits, and a brighter future for all.”

As they prepare for the first day of bargaining on September 19, UAW members are rallying to show their unity and determination to secure a fair agreement. The rally will feature workers, union leaders, and community supporters, all standing together in solidarity as they demand the wages, benefits, and protections they deserve.

“This contract is about more than just numbers—it’s about dignity, respect, and real security for our families,” said Bashaar Al-Hussieni, a worker at the Chattanooga plant. “We voted for the union because we knew we deserved better. Now we’re ready to make sure that our first contract delivers on that promise.”

With the success of recent Big Three and Daimler Truck negotiations as inspiration, Volkswagen workers in Chattanooga are setting a powerful example of what’s possible when workers come together to demand fairness at work.

With representation across every department and shift, the 20-person elected bargaining committee has been meeting for weeks to synthesize survey data about members’ aspirations and goals for the first agreement. Supported by veteran negotiator Chuck Browning, UAW Vice President, the group has been reviewing company and industry data and contract language from agreements with Ford, General Motors, and Stellantis.

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UAW President Shawn Fain and Hundreds of Workers Kick Off Volkswagen Contract Talks Sunday with Live Streamed Rally

CHATTANOOGA — On Sunday, Sept. 15, UAW President Shawn Fain will rally in Chattanooga with Volkswagen workers as contract negotiations covering more than 4,000 UAW members get underway. The workers are demanding a first agreement that raises standards and includes wages, benefits, and protections on par with those secured by autoworkers in unionized plants.

Sunday’s 1:30 p.m. ET rally will be livestreamed at the UAW’s Facebook page. It can also be viewed at the UAW’s YouTube Channel. (Media are invited to use the footage.)

WHAT:
UAW President Shawn Fain to Rally with Hundreds of Volkswagen Workers as Contract Talks Begin

WHEN:  
Sunday, September 15, at 1:30 p.m. ET

WHERE:
The Signal – Ballroom
21 Choo Choo Ave, Chattanooga, TN 37402

WHO:
UAW President Shawn Fain
UAW Vice President Chuck Browning
UAW Region 8 Director Tim Smith
Volkswagen auto workers and allies

 

After an historic victory earlier this year, where Volkswagen workers in Chattanooga voted almost 3-to-1 to join the United Auto Workers (UAW), union members are now turning their attention to securing a strong first contract. On September 19, workers will begin negotiations with Volkswagen, aiming to win higher wages, better benefits, paid time off, retirement security, and much more.

The vote marked a watershed moment in the labor movement, with Volkswagen workers in Chattanooga becoming the first Southern autoworkers outside the Big Three to unionize. Now, they are channeling that momentum toward bargaining for a contract that delivers meaningful improvements to their work and lives.

Bargaining with Volkswagen management begins on Thursday, September 19.

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Joint Statement from UAW and Volkswagen on Certification of Election Results in Chattanooga

The National Labor Relations Board has certified the results of the election in which Volkswagen Chattanooga employees voted for representation by the United Auto Workers. Volkswagen and union workers around the world have a long history of successfully building vehicles together, and we are jointly committed to a strong and successful future at Volkswagen Chattanooga with the UAW. We share many common goals: providing a positive working environment where employees are well compensated for their hard work building quality vehicles and share in the company’s success. Both sides are now focused on collective bargaining and entering negotiations in the spirit of working together to reach a fair agreement and build world-class automobiles together. 

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In Historic Breakthrough, Volkswagen Workers Become First Southern Autoworkers to Win Their Union

CHATTANOOGA, TENN. — In a historic victory, an overwhelming majority of Volkswagen workers in Chattanooga, Tennessee, have voted to join the UAW. While votes continue to be tallied, the outcome is clear: Volkswagen workers in Chattanooga are the first Southern autoworkers outside of the Big Three to win their union. 

Press can see the results of the election tonight at uaw.org/vwvote.

“This election is big,” said Kelcey Smith, a worker in the paint department at Volkswagen. “People in high places told us good things can’t happen here in Chattanooga. They told us this isn’t the time to stand up, this isn’t the place. But we did stand up and we won. This is the time; this is the place. Southern workers are ready to stand up and win a better life.”  

“We saw the big contract that UAW workers won at the Big Three and that got everybody talking,” said Zachary Costello, a trainer in VW’s proficiency room. “You see the pay, the benefits, the rights UAW members have on the job, and you see how that would change your life. That’s why we voted overwhelmingly for the union. Once people see the difference a union makes, there’s no way to stop them.”    

“This is a movement for every blue-collar worker in America,” said Doug Snyder, a body worker at Volkswagen. “Our vote shows that workers everywhere want a better life on and off the job. Fair pay is important, but so is time with our families. So is a voice for safety in our plant. We’re looking forward to getting to the bargaining table with the company and winning a contract that makes things right at Volkswagen.” 

5,000 workers at Mercedes-Benz in Vance, Ala., will have their vote to join the UAW on May 13 to 17. In the wake of the historic Stand Up Strike victory at the Big Three auto companies, over 10,000 non-union autoworkers have signed union cards in recent months, with public campaigns launched at Mercedes, Volkswagen, Hyundai in Montgomery, Ala., and Toyota in Troy, Mo. Workers at over two dozen other facilities are also actively organizing. For more information, visit uaw.org/join. 

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