CHATTANOOGA (dpa-AFX) - Workers at Volkswagen's US plant in Chattanooga are poised to receive a new contract with significant pay increases after months of negotiations. According to the US union UAW, around 3,200 employees will see wage increases totaling 20 percent over the duration of the contract, along with lower healthcare costs and greater job security. VW has confirmed the conclusion of a preliminary agreement with the union.
According to the UAW, workers are also set to receive a one-time payment of $4,000 and annual bonuses of $2,550. The agreement still needs to be ratified by a vote. In spring 2024, workers at VW in Chattanooga voted for union representation on their third attempt.
In September, Volkswagen had presented what it called a "final offer" to employees, which included a 20 percent pay raise and a one-time payment of $4,000. The union criticized the proposal, saying it did not provide sufficient job security to protect workers in the event of a plant closure or sale. Following this, workers authorized negotiators to call a strike if deemed necessary./so/DP/stk
