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Will VW Chattanooga-UAW contract set standard for the South?

Staff photo by Matt Hamilton/ Union supporters hand out pamphlets to workers April 16 as they arrive in the parking lot at the Volkswagen Chattanooga plant. Staff photo by Matt Hamilton/ Union supporters hand out pamphlets to workers April 16 as they arrive in the parking lot at the Volkswagen Chattanooga plant.

By Mike Pare June 29, 2024 5 min read

QUOTE

“They don’t want to just establish a UAW contract, they want to establish a good one — a starting point for future contracts at other plants.” — Karl Brauer of iSeeCars.com

A future labor contract between the United Auto Workers and Volkswagen Chattanooga — where the union in April won a landmark victory — may affect other producers in the South but not become a standard, some experts said.

“I think ‘standard’ may be too strong,” said Stephen Silvia, who teaches international economics and relations and comparative politics at American University in Washington, D.C., adding foreign automakers typically pay “near union” compensation.

But, the VW-UAW contract may affect compensation at other Southern auto plants because some managers will take it into consideration when they set pay and benefits at their factories, Silvia said in an email.

Karl Brauer, executive analyst for the auto research website iSeeCars.com, said the UAW will work hard to reach “a very rewarding contract” at VW since it’s the first one with a foreign automaker in the South.