Canadian Manufacturing

UAW signs up at least 45% of workers at Tenn. VW plant

by Erik Schelzig, The Associated Press   

Canadian Manufacturing
Human Resources Automotive labour Manufacturing politics U.S. UAW unionization volkswagen

UAW qualified for top tier of new labour policy at plant, giving it first formal role at foreign-owned auto plant in southern U.S.

NASHVILLE—The United Auto Workers (UAW) union qualified for the top tier of a new labour policy at Volkswagen AG’s plant in Tennessee, giving the union its first formal role within a foreign-owned auto plant in the southern United States.

Volkswagen said an independent auditor has verified that the UAW’s Local 42 had signed up at least 45 per cent of workers at the Chattanooga plant.

That will entitle the union to biweekly discussions with managers and to frequent access to the plant for meetings, notices and other organizing activity.

While the policy doesn’t address collective bargaining, UAW secretary-treasurer Gary Casteel called it a “starting point” for achieving that goal at the plant where he said the union already represents more than half the workers.


The UAW narrowly lost a union vote at the plant in February after a campaign that included warnings from Republican lawmakers that state incentives needed to expand the plant could be threatened if the union won.

Casteel said that negotiations with Volkswagen management later resulted in the union dropping a National Labor Relations Board (NLRB) challenge in exchange for later being recognized as the representative of its members at the plant without another vote.

“We believe Volkswagen made this commitment in good faith and we believe the company will honour this commitment,” Casteel said.

Under federal labour laws, a company is allowed—but not required—to recognize a union that has signed up at least half of all workers.

UAW opponents like Tennessee Gov. Bill Haslam have called on Volkswagen to require another secret ballot.

Organizing foreign-owned auto plants in the U.S. has been seen as key for the UAW to revive its fortunes.

UAW membership stood at about 391,000 at the start of this year, a far cry from its 1979 peak of 1.5 million.

Volkswagen’s policy of giving labour groups access to its plant stands in contrast to other foreign automakers in the South, which have largely tried to tamp down union activity.

The company has said the policy is aimed at developing a “constructive dialogue” between workers and management beginning with labour groups that sign up at least 15 per cent of workers.

Workers who spearheaded the 712-626 defeat of the UAW in the February union vote have created their own organization called the American Council of Employees, but have so far failed to qualify under the plant’s new labour policy.

VW management has been under heavy pressure from powerful worker representatives who control half of the automaker’s board in Germany because the U.S. plant is alone among the company’s worldwide facilities without labour representation.

The company wants to create a German-style works council at the Tennessee plant to represent salaried and hourly workers.

Under that model, wages are bargained through the union, while the works council negotiates matters like job security and working conditions.

The same law requiring labour representation on the Volkswagen board also applies to other German automakers with factories in the South, like BMW AG and Mercedes-Benz parent Daimler AG.

The UAW has so far failed to make inroads at those companies’ plants in South Carolina and Alabama, and Republican officials there have been keen to keep it that way.


Stories continue below