Volkswagen offers its UAW workers 14% pay raise over four years

However, the UAW is not satisfied with VW’s proposal and negotiations continue

Earlier this year, workers at Volkswagen’s Chattanooga, Tennessee, plant voted to join the United Auto Workers (UAW), and now the German brand is offering them a 14% pay increase over four years.

Workers at the plant have been negotiating with Volkswagen officials for months, and in addition to the raises, Volkswagen’s proposal includes profit sharing and promises to improve health benefits for hourly workers. However, the UAW was not satisfied with VW’s offer and was seeking a record contract.

READ: Volkswagen Chattanooga workers vote in favor of joining UAW

“We’ve been negotiating for months and VW still hasn’t taken our demands seriously,” UAW-Volkswagen bargaining committee member Yogi Peoples told Reuters. “With the record profits they’re generating and the dividend plan they’re using to line the pockets of shareholders, , there are sufficient funds to meet our requirements for a record contract.”

In September, UAW President Shawn Fain said Volkswagen Chattanooga workers are “the backbone of this plant and this company” and it’s time to “win a record contract and make history again.” .

Volkswagen has been in lengthy discussions with the United Auto Workers union over various aspects of the new contract and has recently begun discussing economic issues. The union may choose to accept or reject the proposal or make a counterproposal. Gerrit Spengler, interim CEO and chief human resources officer of Volkswagen Group of America, called the contract offer “compelling.”

“We have made an attractive financial offer to the UAW that will make our jobs in Chattanooga even better,” he said. “Volkswagen has been at the bargaining table working quickly and tirelessly with the UAW. Working together to achieve a strong first contract Working with unions and caring for employees is deeply embedded in Volkswagen’s DNA.”

Key demands from the UAW include higher wages, better PTO and fair attendance policies, improved health and safety, a guaranteed retirement, greater job security and affordable health care.