FW: Volkswagen Workers in Tennessee Win 20% Pay Hike in UAW Deal
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From: Josh Eidelson <jeid...@gmail.com>
Sent: Thursday, February 5, 2026 9:25 AM
To: jeidelson <jeid...@bloomberg.net>
Subject: Volkswagen Workers in Tennessee Win 20% Pay Hike in UAW Deal
Volkswagen Workers in Tennessee Win 20% Pay Hike in Union Deal
February 5, 2026 at 12:56 AM EST
Volkswagen AG employees in Tennessee have secured a 20% across-the-board wage hike in a landmark deal with the United Auto Workers union.
The carmaker and UAW have reached a tentative contract deal covering around 3,000 employees at VW’s plant in Chattanooga, a first for the facility, the parties said late Wednesday. The deal, which is still subject to ratification by union members, makes improvements to healthcare, safety, and job security protections, the UAW said.
Along with the pay increase, the deal includes bonuses equaling $6,550 per worker upon its ratification, plus additional annual bonuses of $2,550 for the life of the agreement, the union said.
Employees at the plant voted in 2024 to join the UAW, an early victory in its effort to expand its foothold following record contract victories with Detroit’s three big automakers. But the union has struggled to repeat that success, suffering a defeat in another closely-watched election at Mercedes-Benz Group AG facilities in Alabama the following month.
The union described the new VW contract as a breakthrough that could help galvanize more workers elsewhere. “This contract is proof that if you stand up and stick together, you can win a better life,” employee Kelcey Smith said in an emailed statement.
Volkswagen said the agreement will “provide meaningful changes” for employees, including more paid time off.
Josh Eidelson
Senior reporter, Bloomberg News and Businessweek
Work e-mail: jeid...@bloomberg.net
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