Volkswagen Chattanooga Plant Secures Tentative UAW Contract Agreement
Employees at Volkswagen’s Chattanooga, Tennessee assembly plant won a tentative contract agreement with the UAW, the union announced late Wednesday. The deal averts strike action and ensures continuation of production at the facility.
1. Workers at Volkswagen’s Tennessee Plant Reach Tentative Agreement
The United Auto Workers union announced that its 3,500 members at Volkswagen’s Chattanooga, Tennessee assembly facility have voted in favor of a tentative four-year contract that provides a cumulative 23% wage increase, enhanced pension contributions, and expanded healthcare benefits. Negotiations concluded after a 48-hour session, during which VW agreed to establish a joint labor-management committee to oversee skills training for electric vehicle assembly. The agreement also secures a pathway for up to 700 additional hires in 2026 to support increased EV capacity, reducing the risk of production disruptions and strengthening the plant’s role in VW’s broader U.S. electrification strategy.