The Volkswagen Group’s Chattanooga Assembly Plant has made history by voting to join the United Auto Workers (UAW), marking a significant milestone following recent union victories across the US.
The United Auto Workers (UAW) has experienced a tumultuous year, initiating an extraordinary simultaneous strike against all three major US automakers in September. The UAW’s tactic ultimately paid off, securing agreements with all three automakers six weeks later, yielding substantial pay raises and various guarantees from each of the companies.
The victory wasn’t limited to UAW employees alone; shortly after the strike ended, numerous other companies responded by implementing significant pay hikes. Firms such as Volkswagen, Hyundai, Toyota, Honda, and Tesla have granted their employees significant pay increases, ranging from 10% to more substantial raises, in a bid to attract and retain top talent amid fierce industry competition.
UAW President Shawn Fain coined the term “the UAW bump,” emphasizing the union’s broader support for workers beyond its member companies. He redefined the acronym as “U Are Welcome,” aiming to convey that robust unions like the UAW offer a safety net for employees across the entire economic spectrum, rather than solely benefiting their own constituents.
Following this string of victories, the United Auto Workers (UAW) announced its plan to organize various American automobile manufacturers simultaneously, with President Joe Biden offering his support for the effort. Inspired by the United Auto Workers’ (UAW) efforts, workers from diverse industries are invited to join the movement by signing an intent to organize and affirm their commitment through the UAW’s online platform at uaw.org/become-a-part-of/.
By 2028’s Worldwide Employees’ Day, May 1st, Fain predicted that when newly-negotiated contracts with the “Massive Three” become due for renegotiation, they won’t simply involve the “Massive Three,” but rather a “Massive 5” or even “Massive Six,” implying that by that timeframe, the UAW plans to have unionized additional automakers.
With this significant milestone in hand, they’ve secured their inaugural major triumph.
The outcome of this morning’s Volkswagen unionization vote served as a benchmark for the United Auto Workers’ (UAW) strategy, ultimately yielding a resounding victory by a significant margin. VW officials confirmed that the final tally revealed a whopping 3,613 ballots cast, with an impressive 83.5% of eligible workers participating in the poll. Some 73% of voters, equivalent to 2,628, backed the proposal, while roughly 27%, or 985, cast their ballots against it.
Chattanooga’s vote etches its place in history in multiple ways. As the first newly unionized auto plant in the US South in 80 years, it holds a significant distinction, and with its ownership by an international automaker, it becomes the sole union-owned plant of its kind within the country.
Prior to the vote, Chattanooga stood as VW’s sole non-union plant globally, a distinction that had been in place for some time. In Germany, home to Volkswagen’s headquarters, companies above a certain size are required to have worker representation on their boards, often in the form of union delegates.
Despite conducting separate union votes in 2014 and 2019, the plant’s attempts at unionization had fallen short, narrowly missing approval on both occasions. Despite experiencing more than a twofold increase in employment since 2019, the company has witnessed even greater union momentum, surpassing levels seen during that period.
Previous votes have been partially derailed due to opposition from Republican state officials who are opposed to employee representation. The bill’s passage at this time was met with opposition from Tennessee’s Republican Governor, Bill Lee, as well as other nearby states’ Republican governors. President Biden issued a statement backing the voting process while criticizing state governors for attempting to subvert it.
Prior to the 2020 election, additional factors had contributed to a tainted voting environment: the corruption scandals that ensnared the union’s former officials, ultimately resulting in their imprisonment. Ratified in 2010, a landmark election resulted in United Auto Workers (UAW) President Gary Jones being succeeded by Rory L. Fain, marking a significant shift from the previously appointed leadership to an elected one.
The Volkswagen Group’s Chattanooga Assembly Plant currently manufactures both the VW ID.4 and the VW Atlas models. The ID.4 was shipped to Chattanooga with the objective of securing entry into the US electric vehicle (EV) tax credit program, and Volkswagen has contemplated relocating production of other EVs to the facility.
The most significant achievement resulting from UAW’s innovative approach was this outcome; yet, it is merely a stepping stone for further advancements. A union election is already slated for next month at Mercedes’ plant in Alabama, where Republican lawmakers recently passed a law aimed at curtailing employee representation. The vote on the tentative agreement is scheduled to take place between May 13-17, with a potential outcome of nearly 10,000 newly unionized autoworkers in the South over a period of just several weeks.
Electrek’s Take
Union membership is experiencing a resurgence in the US, with recognition reaching an all-time high according to surveys.
As a result of COVID-19-related disruptions, the financial system has experienced increased union recognition, driven by employee dissatisfaction stemming from perceived mistreatment (the adoption of generic labels such as “essential” for all employees) and the revocation of flexible work arrangements, including remote work options. The labor market has also become increasingly tight due to the loss of over 1 million American lives to the virus and an estimated 2-4 million individuals forced out of work due to prolonged illness.
As workers’ discontent has grown, labour unions have leveraged this sentiment to build traction within the broader movement, with successful strikes spanning multiple sectors and organisers actively mobilising previously non-unionised workforces.
Despite this trend, union membership has declined significantly over several decades in the United States. Due to these factors, the connection between compensation and employee productivity has not been preserved, leading to a more pronounced inequality in earnings distribution over time. While plotting these tendencies against each other, it’s truly effortless to notice the impact that arises from their convergence.
A decline in union membership has led to a corresponding drop in inflation-adjusted employee compensation, while productivity has risen sharply. As employees create greater value for their companies, this increased productivity has led to a disproportionate share of those earnings flowing upwards to corporate leaders rather than being reinvested in the very people driving growth. The roots of this phenomenon date back to the 1980s, a period closely tied to the Reagan era, requiring familiarity with the societal issues of that era for researchers studying American social ills.
The notion that this statement holds true isn’t limited to the United States, but is also applicable globally. Countries featuring diverse labor forces tend to exhibit more equitable wealth distribution and greater employee capacity to receive a fair share.
In Sweden, a significant shift is currently underway, as Tesla workers eagerly anticipate more favorable working conditions. As evidenced by its 90% collective bargaining protection rate, Sweden is home to a contented and remunerated workforce, suggesting a direct correlation between the two factors. As the contentious takeover saga persists, it appears that Tesla’s CEO Elon Musk, having recently terminated approximately 14,000 employees while simultaneously holding the company hostage and demanding a staggering $55 billion payment for himself, seems to have grown weary of negotiations.
As a long-standing advocate for labor rights, my unwavering support for unions stems from the numerous compelling reasons I’ve thoroughly explored in previous articles on UAW-related topics. I believe it’s essential for everyone to understand – it’s only logical that individuals should have their interests collectively represented, and that people should be able to come together to support each other and pool their efforts rather than working individually.
Firms often leverage trade associations, lobby groups, and local business networks to further their interests. As people do when self-organizing into categories like native, state, or national governments. Employees should follow suit naturally. It’s simply honest.
