- Officials from the UAW say VW is not taking its demands seriously.
- VW has described its offer as “compelling,” noting that it adds profit sharing.
- UAW representatives have been discussing a new contract with VW for several months.
Earlier this year, workers at Volkswagen’s factory in Chattanooga, Tennessee, voted in favor of joining the United Auto Workers (UAW) union and now, the German marque is offering them a 14% pay rise over four years.
Employees at the site have been holding talks with VW officials for several months and in addition to the pay increase, VW’s offer includes profit sharing and promises to improve healthcare benefits for hourly workers. However, the UAW isn’t satisfied with VW’s proposal and is seeking a record contract.
Read: VW’s Chattanooga Workers Vote In Favor Of Joining UAW
“We’ve been bargaining for months, and VW is still not taking our demands seriously,” UAW-VW Bargaining Committee member Yogi Peoples told Reuters. “With the record profits they’ve made and the dividend schemes they’ve used to pad the pockets of shareholders, there’s more than enough money to meet our demands for a record contract.”
In September, UAW president Shawn Fain said Volkswagen Chattanooga workers are “the backbone of this plant and the company,” and that it was time to “earn a record contract and make history again.”
VW has held lengthy discussions with the UAW on all aspects of the new contract and recently started to discuss economic issues. The union can choose to accept or decline the offer or make a counter-proposal. Interim chief executive and chief human resources officer of Volkswagen Group of America, Gerrit Spengler, described the contract offer as “compelling.”
“We have made the UAW a compelling economic offer that makes our great Chattanooga jobs even better,” he said. “Volkswagen has been at the bargaining table working quickly and tirelessly with the UAW to reach a strong first contract. Working collaboratively with unions and taking care of our people are deeply anchored in the Volkswagen DNA.”
Key demands being pushed by the UAW include higher wages, better PTO and fair attendance policies, improved health & safety, secure retirement, greater job security, and affordable health care.