UAW Reaches Tentative Agreement with Volkswagen in Chattanooga, Marking Historic Breakthrough for Southern Autoworkers

CHATTANOOGA, TENN. — Autoworkers at Volkswagen’s Chattanooga plant have won a historic tentative agreement with the company. After making history as the first Southern autoworkers outside the Big Three to join the UAW, the 3,200 workers at Volkswagen Chattanooga have won a tentative contract deal that provides 20 percent across-the-board wage increases, affordable health care, real job security, and more.

UAW President Shawn Fain will provide details of the agreement in a livestream address on UAW social accounts at 11:05 p.m. ET.

After workers voted 3-to-1 to join the UAW in 2024, they elected a 20-member negotiating committee of their peers. After months of negotiations, the tentative deal marks a breakthrough for non-union autoworkers and manufacturing workers across the South. The tentative deal ensures that Volkswagen workers have a legally binding and enforceable agreement that guarantees fair pay, more affordable health care, safer working conditions, and clear protections against favoritism.

“For years, Chattanooga workers were told to settle for less while Volkswagen made record profits. So, the workers stood together and won their union—and now they’ve secured a life-changing first agreement,” said UAW President Shawn Fain. “This deal proves what happens when autoworkers stand up and demand their fair share. People said Southern autoworkers could never form a union or win a union contract. Volkswagen workers in Chattanooga said, ‘Watch this.’”

For workers like bargaining committee co-chair Steve Cochran, a skilled trades worker and co-chair of the Bargaining Committee, the agreement represents a turning point. “A strong contract makes sure promises are delivered. Respect and security shouldn’t be up for negotiation—and now they won’t be.”

The tentative agreement is especially significant given Volkswagen’s recent record-breaking profits. In 2024 alone, the world’s second-largest automaker reported $20.6 billion in profits—even as Chattanooga workers struggled under substandard health coverage and rising out-of-pocket costs.

Key Wins in the Tentative Agreement

• Major Wage Increases – 20% GWI
  Substantial raises that begin to close the gap with industry standards and reflect Volkswagen’s record profits.
• Improved High-Quality Health Care with No Increases
  Lower out-of-pocket costs, improved coverage, and protections that ensure no worker must choose between medical care and basic needs.
• Big Bonuses Initial bonuses equaling $6,550 per worker upon ratification and additional annual bonuses of $2,550 for the life of the agreement. Thousands of dollars of additional compensation for each worker.
• Job Security Protections
  Strong language against unilateral job cuts, shift reductions, and outsourcing—making sure VW keeps good union jobs in Chattanooga.
• Stronger Health & Safety Standards
  Enforceable safety rules, dedicated union safety representatives, and a greater worker voice in identifying and fixing hazards on the job.
• Paid Time Off & Scheduling Protections
  Guaranteed paid leave, fair scheduling requirements, and safeguards against forced overtime and favoritism.
• Fair Discipline & Grievance Rights
  Clear, enforceable protections against unfair discipline and a transparent, worker-centered grievance process.
• A Real Voice on the Job
  Rights that ensure workers have a say in day-to-day decisions that shape their work, their safety, and their future.

This historic agreement reflects significant improvements over the company’s last proposal in October, including:

• New product commitments
• Enhanced right-to-strike protections
• Key newly won Job Security agreements, including protections against outsourcing
• Thousands of additional dollars of annual compensation per worker
• Key Skilled Trades issues addressed
• Stronger safeguards against plant closures or the sale of operations

Workers will receive details of the tentative agreement in the coming days, followed by a ratification vote.

“This contract is proof that if you stand up and stick together, you can win a better life,” said Kelcey Smith, a worker in the paint department. “No matter where you live, or where you work, autoworkers deserve a union contract, whether at the Big Three or Volkswagen, from Detroit to Chattanooga. Volkswagen workers are showing the whole country what’s possible.”

The Chattanooga victory signals a profound shift in the Southern auto industry, as workers across the region stand up to global corporations, demand their fair share, and build a future where autoworkers—no matter where they live or what company they work for—have a collective voice and a seat at the table.

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