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Home » News » Latest News » VW plant could ...
Sunday, Aug. 3, 2008

VW plant could push up local wages

As a supplier of robotics equipment for the automotive industry, Tennessee Rand Co. could pick up valuable business from suppliers to the planned Volkswagen assembly plant in Chattanooga.

But along with that business opportunity, VW’s $1 billion investment at the Enterprise South industrial park also will challenge Tennessee Rand and hundreds of other area employers eager to keep their best workers.

Although Volkswagen hasn’t disclosed the wage rates for its new Chattanooga plant, the German automaker promises to be “very competitive” in recruiting some of the best workers from the local job market for its 2,000-employee plant. Experts predict that could lure some of the region’s best workers away from other businesses and tend to bid up the prevailing wage rates in Chattanooga.

“Overall, VW should be good for Chattanooga and our business, but there is always a chance they could recruit some of our workers, and they probably will put some upward pressure on wages and benefits,” said Darren Kilgore, vice president of operations for Tennessee Rand in Chattanooga.

For complete coverage see tomorrow’s Times Free Press.

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