Volkswagen Workers Ratify First UAW Contract in Chattanooga

Landmark deal marks a significant victory for labor in the South

Published on Feb. 27, 2026

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Workers at Volkswagen's plant in Chattanooga, Tennessee have voted 96% in favor of a new four-year labor contract negotiated by the United Auto Workers (UAW) union. The deal includes a 20% wage increase, improved healthcare and job security benefits, and is seen as a major win for the UAW's efforts to organize plants in the traditionally anti-union South.

Why it matters

This contract represents a major breakthrough for the UAW, which has struggled to gain a foothold in the South despite successes in organizing plants in Detroit. The Chattanooga vote shows the UAW's ability to win over workers even in a region historically hostile to unions, potentially paving the way for further organizing efforts across the region.

The details

After 18 months of negotiations, the UAW and Volkswagen reached a tentative deal earlier this month that was overwhelmingly ratified by workers on Thursday. The four-year contract includes a 20% wage increase as well as improvements to healthcare and job security benefits. This comes on the heels of the UAW's massive wins in Detroit in 2023, where a six-week strike resulted in a 25% wage hike and cost-of-living adjustments.

  • Workers at the Volkswagen plant in Chattanooga voted 73% in favor of joining the UAW in April 2024.
  • The UAW and Volkswagen began negotiations on the contract about 18 months ago.
  • Workers voted 96% in favor of ratifying the new four-year contract on February 19, 2026.

The players

Shawn Fain

President of the United Auto Workers (UAW) union, who has made organizing plants in the South a key priority since being elected in 2023.

Volkswagen

The German automaker that operates the sole U.S. plant in Chattanooga, Tennessee, where workers have now ratified their first UAW contract.

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What’s next

The new four-year contract will go into effect immediately, setting the stage for continued labor-management cooperation at Volkswagen's Chattanooga plant.

The takeaway

The Volkswagen workers' vote to ratify the first UAW contract in the plant's history marks a significant victory for organized labor in the traditionally anti-union South, potentially paving the way for further union organizing efforts across the region.