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VW Chattanooga Workers Ratify First UAW Contract With 20% Raises

The lopsided vote caps 18 months of bargaining at Volkswagen’s only U.S. assembly plant.

Kokomo - Circa June 2022: UAW local. The United Auto Workers is a labor union that represents Automobile, Aerospace, and Agricultural Implement Workers.
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Overview

  • Hourly employees approved the four-year deal by 96% on Feb. 19, finalizing the plant’s first union contract.
  • The pact delivers a 21.6% compounded wage increase over four years, lifting top hourly pay to above $39 for production workers and about $50 for skilled trades.
  • All members receive a $4,000 ratification bonus and $2,550 annually for the life of the agreement, while healthcare premiums drop at least 20% and remain frozen through 2030.
  • Job protections include 80% base pay during temporary layoffs, limits on outsourcing core work, and a commitment to keep the Chattanooga facility open with sufficient production volume for the contract term.
  • The agreement follows the plant’s April 2024 unionization vote and an October 2025 strike authorization, with Volkswagen calling the outcome a shared commitment to competitive wages, strong benefits, and long‑term success.