After a historic win against the Detroit Big Three last year, the UAW unionization plans at Volkswagen’s Chattanooga factory in Tennessee have also borne fruit. The United Auto Workers (UAW) union has been hard at work to unite autoworkers under a single banner and their efforts have ramped up significantly in recent times. The Tennessee Volkswagen UAW vote resulted in a 73 percent consensus to join the union, marking an important milestone in the UAW Southern expansion plans. Under President Shawn Fain’s leadership, the South could see another win when the Mercedes Alabama UAW union vote is held in May this year.
Image: UAW
UAW Unionization at Volkswagen Takes Naysayers By Surprise
The UAW unionization efforts at Volkswagen were the first domino in the UAW’s expansion strategy according to Shawn Fain. Volkswagen itself didn’t do anything to actively encourage or obstruct the vote, but the southern states are known for having a stronger stance against unions. Previous elections conducted in 2014 and 2019 saw only losses for the UAW, which is why the current win comes as a surprise for many. Back then, the union was embroiled in controversy of its own, as a bribery-and-embezzlement scandal had prompted federal investigations that led to a shift in the leadership at the UAW.
What Prompted the Strong Support for the UAW Expansion Strategy?
Apart from the change in leadership, the positive results of the Tennessee Volkswagen UAW vote have been linked to the recent success of the union that brought many benefits to the workers who were employed at the Detroit Big Three—General Motors, Stellantis, and Ford. The strike which began on November 15, continued well into October, causing an estimated $9.3 billion USD in economic losses to the companies according to Anderson Economic Group. The six-week campaign came to a close on October 30, 2023, when General Motors became the last to fold to the demands of its workers. The deal marked a significant raise for all workers and addressed the divisive wage tier systems that were active then.
The deal with Ford won them a 25 percent wage increase over the next 4.5 years—the duration for which the current agreement will hold. Starting wages increased by 68 percent and top wages saw a 30 percent wage hike agreement. GM agreed to make five $500 dollar payments to retirees and their surviving spouses, and improvements were made towards the retirement and pension plans as well. With such significant deals being struck, the UAW unionization at Volkswagen makes a lot of sense for workers who want the same sense of security and stability in their jobs.
Preparing for the Mercedes Alabama UAW Union Vote
Employees on either side of the Tennessee Volkswagen UAW vote now have five days to file any objections to the results. If no disputes arise, the automotive company and the UAW will see the opportunity to meet for negotiations that address any demands the union has. Volkswagen had already made improvements to the base wages of employees at the company following the UAW’s last win, but they might have to make additional adjustments following discussions. The company’s other factories across the globe are already unionized so the Chattanooga factory will have some catching up to do.
Despite the progress on the UAW’s expansion strategy, however, things may not necessarily work out as smoothly with the Mercedes Alabama UAW union vote. The Mercedes-Benz factory near Tuscaloosa, Alabama will vote between May 13-17 and employees will have the opportunity to decide for themselves whether the union offers them enough to join up.
“Volkswagen workers just made history and voted UAW YES! It’s time for autoworkers to win a better life at Toyota, Honda, Hyundai, Tesla, Nissan, BMW, Mercedes-Benz, Subaru, Mazda, Rivian, Lucid, Volvo and beyond.”
—United Auto Workers
The UAW Southern expansion plans hinge on the union’s ability to convince workers that there is room for greater profit sharing throughout the company rather than restricting the benefits for the top executive. “Mercedes’s profits have grown by 200% in just the past few years. From March to November 2023, the company spent $1.9 billion on stock buybacks instead of sharing those record profits with their workforce,” the UAW reports. According to APNews, there were 6,100 workers at the Mercedes facility at the end of 2023, UAW states that 5,000 of them have shown support for the union vote. Mercedes has remained unopposed to the workers’ right to vote but the governors of many Southern states have threatened the jobs of those who vote to unionize.
