By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
IndebtaIndebta
  • Home
  • News
  • Banking
  • Credit Cards
  • Loans
  • Mortgage
  • Investing
  • Markets
    • Stocks
    • Commodities
    • Crypto
    • Forex
  • Videos
  • More
    • Finance
    • Dept Management
    • Small Business
Notification Show More
Aa
IndebtaIndebta
Aa
  • Banking
  • Credit Cards
  • Loans
  • Dept Management
  • Mortgage
  • Markets
  • Investing
  • Small Business
  • Videos
  • Home
  • News
  • Banking
  • Credit Cards
  • Loans
  • Mortgage
  • Investing
  • Markets
    • Stocks
    • Commodities
    • Crypto
    • Forex
  • Videos
  • More
    • Finance
    • Dept Management
    • Small Business
Follow US
Indebta > News > VW workers in Tennessee vote to join union in win for US labour movement
News

VW workers in Tennessee vote to join union in win for US labour movement

News Room
Last updated: 2024/04/19 at 11:45 PM
By News Room
Share
6 Min Read
SHARE

Unlock the Editor’s Digest for free

Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.

Workers at a Volkswagen plant in Chattanooga, Tennessee voted to form a union on Friday, the first victory in the United Auto Workers’ campaign to build on last year’s strike against the Detroit Three by organising factories across the US south.

The workers, who voted 2,628 to 985 to join the union, had said that Volkswagen was underpaying them, targeting the German group as part of a $40mn campaign to organise workers at 13 mostly foreign-owned carmakers with non-union plants in the US.

The closely watched election underscores the resurgence of the labour movement in America. Union organisers see southern states including Tennessee as hostile territory and have tried to organise there for decades with little success.

Darrell Belcher, who has worked in assembly in the Chattanooga plant for 13 years, told the Financial Times that the union’s pitch to Volkswagen workers hinged on the record 25 per cent raises Ford, Stellantis and GM had agreed to after six weeks of strikes last year. The pay increases will be spread over the length of the 4.5 year contract.

“[The union] campaigns on ‘look at what Ford got’,” Belcher said. “They’ve really been pushing $40 [an hour] and free health insurance.”

Belcher voted against the union, saying union representatives could not guarantee that they could negotiate the same contract for Volkswagen employees.

In a statement, Volkswagen thanked its Chattanooga employees for voting and said it was waiting for federal labour officials to certify the result.

Volkswagen has previously said that it did not think that its Chattanooga employees needed a union because their pay, which ranges between $24.50 and $32.40 per hour, was already above average for the city.

Workers had already received a raise after the UAW signed new contracts with the Detroit automakers in November. Observers called it the “UAW bump.”

The union tried twice before to organise the Volkswagen plant, most recently in 2019. It lost that election 833 to 776.

At the time, the UAW faced fierce opposition from elected officials, local business leaders and a group of anti-UAW employees funded by anti-union interest groups, said Harry Katz, a professor of collective bargaining at Cornell’s School of Industrial and Labor Relations.

Southern lawmakers lured foreign automakers’ US manufacturing operations to states including Tennessee and Alabama with generous tax breaks and promises that they are inhospitable to unions that typically drive up labour costs. The region’s “right to work” laws give workers the ability to opt out of paying union dues, making it more difficult for labour organisations to support themselves financially.

But unions have surged in popularity since the Covid crisis. The UAW had the support of 76 per cent of US adults during last autumn’s strike, according to a CNN poll.

That meant that workers looking to unionise faced far less resistance during this election, according to Art Wheaton, the director of labour studies at Cornell’s School of Industrial and Labor Relations.

“The public is saying ‘we’re on their side,’ which I think took many people by surprise, including many Republican elected officials,” Wheaton said.

The Republican governors of Alabama, Georgia, Tennessee and Texas released a joint statement opposing the UAW on Tuesday, calling the union “special interests looking to come into our state and threaten our jobs and the values we live by”.

Republican Congressman Chuck Fleischmann, whose district encompasses the Volkswagen plant, told reporters that he would “[stay] out of it this time.”

“This is something that I’m going to let the workers decide,” Fleischmann said while boarding a flight to Chattanooga last week, according to the Huffington Post.

More than 70 per cent of the plant’s 4,300 employees signed union authorisation cards before the union filed an election petition last month, the UAW said.

UAW’s landslide victory in Chattanooga raises its hopes that it can repeat its success at Mercedes-Benz in Alabama, where federal labour officials have scheduled a union election next month. Winning there will be much more difficult than in Chattanooga, Wheaton said, because the union had a shorter history of organising at that plant.

UAW president Shawn Fain has said that he plans to organise more than two dozen additional auto plants across the southern US, including a Toyota plant in Missouri and a Nissan one in Mississippi.

“Southern workers are ready to stand up and win a better life,” Kelcey Smith, a worker in the paint department at Volkswagen Chattanooga, said in a statement.

Read the full article here

News Room April 19, 2024 April 19, 2024
Share this Article
Facebook Twitter Copy Link Print
Leave a comment Leave a comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Finance Weekly Newsletter

Join now for the latest news, tips, and analysis about personal finance, credit cards, dept management, and many more from our experts.
Join Now
Gold slides as rally loses steam

Unlock the Editor’s Digest for freeRoula Khalaf, Editor of the FT, selects…

Markets are in risk-off mode: Some of the ‘bloom is off the rose’ for AI, strategist says

Watch full video on YouTube

Why Iran Is Moving Oil Markets

Watch full video on YouTube

Why 2026 could be a good setup for stocks, bitcoin slides below $85K

Watch full video on YouTube

Why Everyone’s Suddenly Talking About Private Credit

Watch full video on YouTube

- Advertisement -
Ad imageAd image

You Might Also Like

News

Gold slides as rally loses steam

By News Room
News

Golden Buying Opportunities: Deeply Undervalued With Potential Upside Catalysts

By News Room
News

NewtekOne, Inc. (NEWT) Q4 2025 Earnings Call Transcript

By News Room
News

Tesla lurches into the Musk robotics era

By News Room
News

Keir Starmer meets Xi Jinping in bid to revive strained UK-China ties

By News Room
News

Canadian Pacific Kansas City Limited (CP:CA) Q4 2025 Earnings Call Transcript

By News Room
News

SpaceX weighs June IPO timed to planetary alignment and Elon Musk’s birthday

By News Room
News

Japan’s discount election: why ‘dirt cheap’ shoppers became the key voters

By News Room
Facebook Twitter Pinterest Youtube Instagram
Company
  • Privacy Policy
  • Terms & Conditions
  • Press Release
  • Contact
  • Advertisement
More Info
  • Newsletter
  • Market Data
  • Credit Cards
  • Videos

Sign Up For Free

Subscribe to our newsletter and don't miss out on our programs, webinars and trainings.

I have read and agree to the terms & conditions
Join Community

2023 © Indepta.com. All Rights Reserved.

Welcome Back!

Sign in to your account

Lost your password?