- Volkswagen and the UAW have reached a tentative agreement.
- It calls for a 20% wage increase as well as sizable bonuses.
- Workers can also expect better health care and job protections.
Workers at Volkswagen’s plant in Chattanooga, Tennessee voted to join the UAW in 2024, but that was the easy part. What followed was months of negotiations and some occasionally nasty rhetoric.
However, things are finally moving forward as the UAW has reached a tentative agreement with Volkswagen. The union said it paves the way for 3,200 employees to receive 20% “across-the-board wage increases, affordable health care, real job security, and more.”
More: VW’s 20% Raise And Bonus Offer Could Make Or Break UAW Deal
Besides “substantial raises,” workers at the plant are being promised big bonuses. There would be a $6,550 payout upon ratification of the agreement as well as an annual bonus of $2,550 for the life of the contract.
The union went on to say the agreement would guarantee paid leave, fair scheduling requirements, and provide safeguards against forced overtime and favoritism. They added work conditions would improve thanks to dedicated union safety representatives and enforceable safety rules.
The agreement also calls for “clear, enforceable protections against unfair discipline and a transparent, worker-centered grievance process.” Other highlights include improved health care coverage with lower out-of-pocket costs as well as “strong language against unilateral job cuts, shift reductions, and outsourcing.”
The union went on to note the latest offer includes “new product commitments” as well as enhanced right-to-strike protections.
While that’s just a brief overview of the tentative agreement, the UAW seems to be in favor of ratification. They also noted workers will receive additional information in the coming days, before eventually voting on it.
UAW President Shawn Fain said, “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.”
Volkswagen didn’t have much to say, but stated “This comprehensive agreement will provide meaningful changes for our workforce, including increased wages, reduced health care costs, and more paid time off.”
