Haslam defends Volkswagen assistance

Chattanooga's Volkswagen plant
Chattanooga's Volkswagen plant

NASHVILLE -- Republican Gov. Bill Haslam says that while he sympathizes with Hamilton County GOP lawmakers' "real concerns" about the United Auto Workers union's role at Chattanooga's Volkswagen plant, the governor is urging them not to let it torpedo $300 million in incentives that expand production there.

"You have some real concerns expressed by legislators that we understand," Haslam told reporters in Nashville on Wednesday. "We expressed those same concerns as well. We'll have those discussions about where we think Volkswagen is and why we think this is the right proposal for the state."

Haslam last summer announced the incentives the company has called key to adding production of a SUV line to the current production there along with current production of the Passat. That is expected to add some 2,000 jobs.

photo Gov. Bill Haslam speaks at the state Capitol in Nashville on Dec. 2, 2014.

On Tuesday, Sen. Bo Watson, R-Hixson, Sen. Todd Gardenhire, R-Chattanooga and Rep. Mike Carter, R-Ooltewah, said in a Times Free Press editorial board discussion that UAW presence at Volkswagen is posing problems for them when it comes to the incentives.

"I start with a jaundiced view," Carter said.

Action on the VW incentives, negotiated last year by Haslam and state economic development officials, is expected to come during this year's legislative session.

"There will be discussions about additional incentives to Volkswagen," Watson said Tuesday. "Whatever is playing out locally will be part of that discussion. I didn't say they should pass the incentives. I didn't say they were going to pass. At the end of the day, we'll settle on what is in the best interests of the citizens.

"Each individual legislator will take a position that best represents his district," Watson said.

Gardenhire said that VW's attitude is "it's their way or no way. They've decided by golly they want the UAW here. They're not listening to the community."

After U.S. Sen. Bob Corker, R-Tenn., attacked the UAW and criticized VW last year, Watson was among state elected officials, including Haslam, who sharply criticized VW for supporting the UAW ahead of a February union vote by VW employees.

The UAW narrowly lost the vote but VW has since granted the union rights for bi-weekly talks with top managers and regular plant access.

Haslam said Wednesday said because the plant is in their own home county, the support of local legislators is important.

"Obviously any legislation that comes up, the home legislators for that issue tend to have more influence than others," the governor said. "And so the vote of the Hamilton County delegation on that will be more important."

Asked if he was worried that possible opposition from them could upset the deal, Haslam said, "we certainly hope not."

The governor also said "there's no question" that scuttling the incentive package could hurt Tennessee's future job recruitment efforts.

"Now, we always put that as a caveat to the deal that the Legislature has to approve," Haslam quickly added. "But historically, that has always happened in Tennessee."

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