Volkswagen Workers At US Plant To Receive 20 Pct Pay Rise

WASHINGTON, Feb 5 (Bernama-dpa) -- Workers at Volkswagen's United States (US) plant in Chattanooga, in the state of Tennessee, are set to receive a new labour contract with significant pay rises after months of negotiations, German Press Agency (dpa) reported, citing the United Auto Workers (UAW) union late on Wednesday.

For the roughly 3,200 employees, the deal provides wage increases totalling 20 per cent over the life of the contract, lower health care costs, and stronger job security, the UAW said in a statement on X.

Volkswagen confirmed that it had reached a tentative agreement with the union.

Under the proposed deal, workers would receive initial bonuses totalling US$6,550 upon ratification, as well as annual bonuses of US$2,550, according to the union. The agreement still needs to be approved by a vote of the workforce.

Volkswagen workers in Chattanooga voted to unionise in 2024 on their third attempt to do so.

In September, Volkswagen presented a "final contract offer" to employees, including a 20 per cent pay rise and a US$4,000 lump-sum payment. 

The union criticised that proposal at the time, saying it did not provide sufficient job security to protect workers from a potential plant closure or sale. Workers subsequently authorised union negotiators to call a strike if deemed necessary.

-- BERNAMA-dpa