At Volkswagen 121 out 122 global plants are unionized.
Volkswagen of America said today it will increase the pay of its non-union Chattanooga assembly plant workers by 11%. In what is clearly a defensive move against the reformed and increasingly successful United Auto Workers union in the US, which is now targeting non-union transplants in the south, the increase is effective starting in December. A condensed wage progression timeline begins in February. The VW pay increase is far short of what the UAW gained for its members in its 2023 contract negotiations with Ford, GM and Stellantis.*
“Volkswagen of America annually evaluates compensation for our production team members at the end of the year to ensure we continue to offer a competitive and robust compensation package designed to attract and motivate employees who make our daily operations possible at the plant,” VW said in a statement.
Volkswagen of America is an operating unit of Volkswagen Group of America, a subsidiary of Volkswagen AG, which is of course unionized by IG Metall (Deutscher Metallarbeiter-Verband – DMV. One of the largest trade union groups in the world.) that occupies a seat on the Board of Directors. DMV has just elected its first female chair.
Headquartered in Reston, Virginia, VW provides matching contributions to employees’ 401(k)s; a defined contribution retirement plan; multiple options for medical coverage plans to serve the varying needs of our workforce, including prescription, dental, and vision benefits; paid parental leave; a tuition reimbursement program; and an employee vehicle leasing benefit for themselves and their family members.
The UAW on the Big Three Contract Victories
“The members have spoken. After years of cutbacks, months of our Stand Up campaign, and weeks on the picket line, we have turned the tide for the American autoworker,” said UAW President Shawn Fain. “The Stand Up Strike was just the beginning. The UAW is back to setting the standard. Now, we take our strike muscle and our fighting spirit to the rest of the industries we represent, and to millions of non-union workers ready to Stand Up and fight for a better way of life.”
“The 150,000 UAW autoworkers at the Big Three have won back major provisions that were sacrificed during the Great Recession, including cost-of-living adjustments (COLA), annual bonuses for retirees, and the eventual elimination of wage tiers.
“The agreements include solid wage increases for all Big Three members, life-changing raises for tens of thousands of members, and tens of billions of dollars in product and investment commitments from the companies.
“After decades of de-industrialization and working-class decline, the new contracts pave the way for a future of re-industrialization and working-class power,” the UAW said.
Contract Provisions
- Raises from 33% to more than 160%. Over the life of the agreement, members will see raises of at least 33%, after COLA and compounded wage increases, ranging up to over 160% for some of the lowest-paid workers. Tens of thousands of autoworkers will see immediate raises of over 40% with ratification.
- Faster Progression to Top Pay. At all three companies, the union won a three-year wage progression to the top pay rate, down from eight years. This restores the progression in place before the 2011 contract.
- Reopening Belvidere, Reinvesting in America. Stellantis agreed to reopen an assembly plant in Belvidere, IL., it shuttered in February and committed to build a $3.2 billion battery plant there employing more than a thousand union workers. The company was going to let go than 5000 U.S. hourly jobs when bargaining began. It is now on track to add more than 5000.
- A Path to a Just EV Transition. The UAW won commitments at all three automakers that will bring thousands of electric vehicle (EV) and battery jobs under the union’s national agreements.
- Improvements in Retirement for All Active and Retired Members. Current retirees will receive annual bonuses for the first time in 15 years, a $1.25 billion boost in their benefits – a billion dollars more than the union won for retirees in the last four contracts combined. At all three companies, workers hired before 2007 won an increase to their pension multiplier for the first time in more than 15 years. However, the union did not win back defined benefit pensions for post-2007 hires, but the employer contribution to their 401(k)s is raised to 10%, which will more than double many members’ annual 401(k) contributions over the life of the contract.
All six agreements – hourly and salaried units at each of the three automakers – were ratified by the membership.
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Volkswagen Raises Pay of US Plant Workers to Resist UAW
At Volkswagen 121 out 122 global plants are unionized.
Volkswagen of America said today it will increase the pay of its non-union Chattanooga assembly plant workers by 11%. In what is clearly a defensive move against the reformed and increasingly successful United Auto Workers union in the US, which is now targeting non-union transplants in the south, the increase is effective starting in December. A condensed wage progression timeline begins in February. The VW pay increase is far short of what the UAW gained for its members in its 2023 contract negotiations with Ford, GM and Stellantis.*
“Volkswagen of America annually evaluates compensation for our production team members at the end of the year to ensure we continue to offer a competitive and robust compensation package designed to attract and motivate employees who make our daily operations possible at the plant,” VW said in a statement.
Volkswagen of America is an operating unit of Volkswagen Group of America, a subsidiary of Volkswagen AG, which is of course unionized by IG Metall (Deutscher Metallarbeiter-Verband – DMV. One of the largest trade union groups in the world.) that occupies a seat on the Board of Directors. DMV has just elected its first female chair.
Headquartered in Reston, Virginia, VW provides matching contributions to employees’ 401(k)s; a defined contribution retirement plan; multiple options for medical coverage plans to serve the varying needs of our workforce, including prescription, dental, and vision benefits; paid parental leave; a tuition reimbursement program; and an employee vehicle leasing benefit for themselves and their family members.
The UAW on the Big Three Contract Victories
“The members have spoken. After years of cutbacks, months of our Stand Up campaign, and weeks on the picket line, we have turned the tide for the American autoworker,” said UAW President Shawn Fain. “The Stand Up Strike was just the beginning. The UAW is back to setting the standard. Now, we take our strike muscle and our fighting spirit to the rest of the industries we represent, and to millions of non-union workers ready to Stand Up and fight for a better way of life.”
“The 150,000 UAW autoworkers at the Big Three have won back major provisions that were sacrificed during the Great Recession, including cost-of-living adjustments (COLA), annual bonuses for retirees, and the eventual elimination of wage tiers.
“The agreements include solid wage increases for all Big Three members, life-changing raises for tens of thousands of members, and tens of billions of dollars in product and investment commitments from the companies.
“After decades of de-industrialization and working-class decline, the new contracts pave the way for a future of re-industrialization and working-class power,” the UAW said.
Contract Provisions
All six agreements – hourly and salaried units at each of the three automakers – were ratified by the membership.
AutoInformed on