From Local 3 News: UPDATE: Volkswagen Chattanooga has proposed their "best, final offer" to the United Auto Workers Local 42 after nearly a year of bargaining.
A spokesperson for the company says, “Last best offer really makes it clear to our employees and the UAW that we have reached our limit. We cant put anymore on the table, this is it.. Its making it clear where we stand in the process.”
Here are the highlights:
The union was elected in April 2024, and bargaining kicked off in September 2024, according to a Volkswagen official.
"After nearly a year of ongoing negotiations with the United Auto Workers, Volkswagen has presented a final contract offer that reflects our deep commitment to our employees and the Chattanooga community," Michael Lowder, VW spokesperson stated. "Our proposal includes a 20% wage increase, a first-ever cost-of-living allowance, a $4,000 ratification bonus, reduced health care costs, industry-leading paid time off, and additional holidays - alongside enhanced job security and other employee-requested improvements."
Volkswagen says the plan would allow employees to earn up to $80,000 next year before bonuses.
A Volkswagen spokesperson tells us, “80,000 is not bad in Chattanooga, Tennessee… I think it's a quite generous offer for them."
We have reached out to officials with the UAW and are awaiting response.
PREVIOUS STORY: Volkswagen Chattanooga is expected to announce details about the latest step in their labor contract negotiations with the United Auto Workers.
The two are approaching a year of "collective bargaining," according to a VW spokesperson.
Most recently, the Chattanooga City Council postponed a resolution that would pledge their "full support" to the union. Council members will review the resolution again Tuesday, Sept. 30.
Local 3 is attending the company's latest virtual briefing Wednesday, and will provide updates.
A spokesperson for the company says, “Last best offer really makes it clear to our employees and the UAW that we have reached our limit. We cant put anymore on the table, this is it.. Its making it clear where we stand in the process.”
Here are the highlights:
- 20% wage increase over 4 years
- $4,000 ratification bonus
- $1,500 rapid resolution bonus if the contract is ratified by Friday, Oct. 31
- Cost-of-living allowance (COLA) (capped at $0.45)
- 8% bonus percentage paid annually for everyone who meets attendance bonus requirements
- As well as profit sharing if VW Passenger Cars exceeds 4% return on sales
The union was elected in April 2024, and bargaining kicked off in September 2024, according to a Volkswagen official.
"After nearly a year of ongoing negotiations with the United Auto Workers, Volkswagen has presented a final contract offer that reflects our deep commitment to our employees and the Chattanooga community," Michael Lowder, VW spokesperson stated. "Our proposal includes a 20% wage increase, a first-ever cost-of-living allowance, a $4,000 ratification bonus, reduced health care costs, industry-leading paid time off, and additional holidays - alongside enhanced job security and other employee-requested improvements."
Volkswagen says the plan would allow employees to earn up to $80,000 next year before bonuses.
A Volkswagen spokesperson tells us, “80,000 is not bad in Chattanooga, Tennessee… I think it's a quite generous offer for them."
We have reached out to officials with the UAW and are awaiting response.
PREVIOUS STORY: Volkswagen Chattanooga is expected to announce details about the latest step in their labor contract negotiations with the United Auto Workers.
The two are approaching a year of "collective bargaining," according to a VW spokesperson.
Most recently, the Chattanooga City Council postponed a resolution that would pledge their "full support" to the union. Council members will review the resolution again Tuesday, Sept. 30.
Local 3 is attending the company's latest virtual briefing Wednesday, and will provide updates.
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