Volkswagen Workers in Tennessee Reach Tentative Deal

United Auto Workers union announces agreement after negotiations.

Published on Feb. 4, 2026

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Workers at Volkswagen's manufacturing plant in Chattanooga, Tennessee have reached a tentative agreement with the company, according to the United Auto Workers union. The details of the deal have not been publicly released, but the announcement marks a significant development in the ongoing labor negotiations.

Why it matters

This tentative agreement comes after years of efforts by the United Auto Workers to organize Volkswagen's Chattanooga plant, which has been a key battleground in the union's push to expand its presence in the South. The outcome of these negotiations could have broader implications for the auto industry and labor relations in the region.

The details

The United Auto Workers union announced the tentative deal late on Wednesday, though the specific terms have not been disclosed. Volkswagen and the union have been in negotiations for several months over issues such as wages, benefits, and working conditions at the Chattanooga facility, which employs around 3,800 workers.

  • The tentative agreement was announced on February 4, 2026.

The players

United Auto Workers

A labor union that represents workers in the automotive industry, including employees at Volkswagen's Chattanooga plant.

Volkswagen

A German automaker that operates a manufacturing facility in Chattanooga, Tennessee.

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What they’re saying

“We are pleased to have reached a tentative agreement with Volkswagen that addresses the needs of our members.”

— United Auto Workers (marketscreener.com)

What’s next

The tentative agreement must now be ratified by the union membership before it can be finalized.

The takeaway

This tentative deal represents a significant milestone in the ongoing efforts by the United Auto Workers to organize Volkswagen's Chattanooga plant, which has been a key battleground in the union's push to expand its presence in the American South.