Tennessee Volkswagen Workers Ratify Landmark Union Contract

United Auto Workers members overwhelmingly approved a four-year contract with Volkswagen AG.

Feb. 27, 2026 at 8:47am

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United Auto Workers members at a Volkswagen assembly plant in Chattanooga, Tennessee have overwhelmingly approved a four-year union contract with the automaker. The contract includes a 20% across-the-board wage increase and job protections for about 3,000 members over the life of the agreement.

Why it matters

This is a significant victory for the United Auto Workers union, which has struggled to organize foreign-owned auto plants in the American South. The ratification of this contract represents a major milestone in the UAW's efforts to expand its presence in the region.

The details

Employees at the Volkswagen assembly plant in Chattanooga, Tennessee voted 96% in favor of the tentative agreement reached earlier this month between the UAW and Volkswagen. The four-year contract secures a 20% across-the-board wage increase and job protections for the approximately 3,000 UAW members at the plant.

  • The tentative agreement was reached earlier this month.
  • Employees voted to ratify the contract on February 20, 2026.

The players

United Auto Workers

A labor union that represents workers in the automotive industry, including those employed by Volkswagen.

Volkswagen AG

A German automaker with an assembly plant in Chattanooga, Tennessee.

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The takeaway

The ratification of this landmark union contract at Volkswagen's Tennessee plant represents a significant victory for the UAW in its efforts to expand its presence in the South, a region that has historically been resistant to union organizing in the auto industry.