Get all your news in one place.
100’s of premium titles.
One app.
Start reading
The Street
The Street
James Ochoa

The UAW secured a historic win with VW, but its next challenge won't be easy

In the span of three days, workers at German automaker Volkswagen's Chattanooga, Tenn. plan voted in an overwhelming majority to join the United Auto Workers, becoming the first foreign-owned automotive plant in the American South to unionize.

Related: Elon Musk apologizes to laid off Tesla employees for a major mistake

A VW employee looks at UAW unionization vote results on her phone at a United Auto Workers vote watch party on April 19, 2024 in Chattanooga, Tennessee. Since Wednesday workers have been voting on whether to join the United Auto Workers (UAW) union. 

Elijah Nouvelage/Getty Images

According to results posted by the National Labor Relations Board, 73%, or 2,628 workers at the plant that produces the German brand's Atlas SUV and ID.4 electric vehicle voted in favor of the UAW and 23%, or 985 opposed. 

The sweeping victory for the UAW comes after two failed attempts in 2014 and 2019, which resulted in workers in Chattanooga narrowly rejecting a factory-wide union under the UAW. However, this latest effort comes as organizers and union supporters sought to unionize the plant in response to the UAW's contract victories with Detroit's Big Three in November 2023, noting that a contract negotiated through the union could result in better pay, working conditions and job security.

“We saw the big contract that UAW workers won at the Big Three and that got everybody talking,” said Volkswagen proficiency room trainer Zachary Costello. “You see the pay, the benefits, the rights UAW members have on the job, and you see how that would change your life. That’s why we voted overwhelmingly for the union. Once people see the difference a union makes, there’s no way to stop them.”    

A Volkswagon employee celebrates as results of the unionization vote trickle in at a United Auto Workers vote watch party on April 19, 2024 in Chattanooga, Tennessee. Since Wednesday workers have been voting on whether to join the United Auto Workers (UAW) union.

Elijah Nouvelage/Getty Images

“This election is big,” said VW paint department worker Kelcey Smith. “People in high places told us good things can’t happen here in Chattanooga. They told us this isn’t the time to stand up, this isn’t the place. But we did stand up and we won. This is the time; this is the place. Southern workers are ready to stand up and win a better life.”  

In a statement released by the White House, President Joe Biden congratulated the Chattanooga workers and took the opportunity to criticize the anti-union Republican governors of southern states for their anti-union sentiment.

"Together, these union wins have helped raise wages and demonstrate once again that the middle-class built America and that unions are still building and expanding the middle class for all workers," President Biden said.

"Six Republican governors wrote a letter attempting to influence workers’ votes by falsely claiming that a successful vote would jeopardize jobs in their states. Let me be clear to the Republican governors that tried to undermine this vote: there is nothing to fear from American workers using their voice and their legal right to form a union if they so choose."

Flags fly above the entrance to the Volkswagen automobile assembly plant in Chattanooga, Tennessee. 

Elijah Nouvelage/Getty Images

In a statement, Volkswagen of America recognized that its workers at its Chattanooga plant have voted favorably for representation by the United Auto Workers in a "democratic, secret ballot vote overseen by the National Labor Relations Board (NLRB)," and also thanked the workers for participating in the ballot.

Though this election can be seen as a victory, the UAW's next challenge is a big one, as in less than a month, workers at Mercedes-Benz's assembly plant in Vance, Ala., will also hold an election on May 13 to 17.

In comparison to what went on in Tennessee at VW, Mercedes-Benz is putting up a huge fight against unionization. According to a report by local publication AL.com, workers have gone to the NLRB and accused the luxury automaker of retaliating against workers at its Alabama plants for organizing or showing support for the UAW.

Workers assemble the electric EQS SUV at Mercedes-Benz's Tuscaloosa plant in Alabama

Mercedes-Benz

In a statement provided by the UAW, multiple workers including Lakeisha Carter, Al Ezell and Taylor Snipes, received some sort of retaliatory punishment or termination in regards to their pro-union stance by plant managers. 

Mercedes-Benz U.S. International (MBUSI) claimed to the Alabama newspaper that it had "not interfered with or retaliated against any Team Member in their right to pursue union representation, and we do not agree that the claims have any merit.”

“We look forward to presenting our case to the NLRB,” Mercedes-Benz said. “Additionally, MBUSI rejects claims that it has denied any Team Member leave for their union affiliation. Following the UAW’s nationwide campaign to increase its membership, MBUSI wants to ensure its team members make an informed decision."

More Labor:

On April 3, the UAW filed charges against Mercedes-Benz Group AG  (DDAIF)  in the automaker's home country, citing seven instances of documented anti-union practices that they allege are in violation of Germany's Act on Corporate Due Diligence Obligations in Supply Chains, which prohibits German firms from disregarding worker's rights to form trade unions.

If found guilty, Mercedes could be face billions in penalties, fines and a ban on government contracts. 

In a statement MBUSI said that it "respects our team members’ choice whether to unionize and we look forward to participating in the election process to ensure every team member has a chance to cast their own secret-ballot vote, as well as having access to the information necessary to make an informed choice."

Related: Veteran fund manager picks favorite stocks for 2024

Sign up to read this article
Read news from 100’s of titles, curated specifically for you.
Already a member? Sign in here
Related Stories
Top stories on inkl right now
One subscription that gives you access to news from hundreds of sites
Already a member? Sign in here
Our Picks
Fourteen days free
Download the app
One app. One membership.
100+ trusted global sources.