UAW Unionizes Volkswagen's Chattanooga Plant in Historic Vote

Workers ratify first-ever union contract at a major Southern automotive plant

Published on Feb. 27, 2026

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In a historic move, workers at Volkswagen's Chattanooga, Tennessee assembly plant voted by a 96% margin to ratify the United Auto Workers' first-ever union contract at a major automotive plant in the American South. The deal includes a 20% wage increase, improved healthcare benefits, and a $6,550 bonus for reaching the agreement.

Why it matters

This landmark victory for the UAW represents a major breakthrough for the labor movement in the traditionally anti-union South, where automakers have long resisted unionization efforts. It could pave the way for further union organizing at other non-union automotive plants in the region.

The details

After over a decade of failed attempts, the UAW has finally succeeded in unionizing Volkswagen's Chattanooga plant, the first major automotive facility in the American South to do so. The new contract, ratified by 96% of workers, includes a 20% wage increase, improved healthcare benefits, and a $6,550 bonus for reaching the deal. UAW President Shawn Fain hailed the agreement as 'another big win' for the union, which has its sights set on organizing more shops across the South.

  • The UAW has been attempting to organize the Volkswagen Chattanooga plant for over a decade.
  • The tentative agreement was announced on February 4, 2026.
  • Volkswagen employees voted on the deal over the past two days.

The players

United Auto Workers (UAW)

A labor union that represents automotive, aerospace, and agricultural implement workers in the United States.

Volkswagen Chattanooga Assembly Plant

An automotive manufacturing facility operated by Volkswagen in Chattanooga, Tennessee.

Shawn Fain

President of the United Auto Workers union.

Tim Smith

UAW Region 8 Director.

Michael Lowder

Spokesperson for Volkswagen.

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What they’re saying

“Volkswagen workers have moved yet another mountain. From having the courage to stand up and form their union, to having the backbone to authorize a strike and hold out for a contract that honors their worth, VW workers are leading the way for the entire labor movement and non-union autoworkers everywhere. Welcome to the UAW family.”

— Shawn Fain, President, United Auto Workers (News release)

“Southern autoworkers are standing up, and I expect many more to follow Volkswagen's lead.”

— Tim Smith, UAW Region 8 Director (News release)

“Volkswagen team members in Chattanooga today ratified our first collective bargaining agreement with the UAW. This milestone reflects our shared commitment to competitive wages, strong benefits, and the long‑term success of our employees and operations. We look forward to building a strong future together in Chattanooga.”

— Michael Lowder, Volkswagen Spokesperson (News release)

What’s next

The judge in the case will decide on Tuesday whether or not to allow Walker Reed Quinn out on bail.

The takeaway

This historic unionization of Volkswagen's Chattanooga plant represents a major breakthrough for the labor movement in the traditionally anti-union South, and could pave the way for further union organizing at other non-union automotive facilities in the region.