The United Auto Workers, or UAW is making some substantial gains in its push to expand its reach within the U.S. auto industry.
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As per a report by Reuters, workers at the assembly plant of German auto giant Volkswagen (VLKAF) in Chattanooga, Tenn. are seeking to set up an election to join the automotive worker's union.
The latest effort is the third time in 10 years that the UAW has sought to represent workers at the Chattanooga factory, as the union claims that a supermajority of eligible workers at the VW plant signed union cards in a span of three months. A petition has been filed with the National Labor Relations Board (NLRB) to join the union.
Non-union plants, such as those operated by Asian and European automakers like Toyota, Hyundai and Mercedes-Benz in the United States have been a longtime target for the United Auto Workers predating the tenure of UAW president Shawn Fain.
The developments in Chattanooga come at the tail end of Fain's latest campaign, which had the mentioned automakers in its crosshairs in a simultaneous organizing campaign. Many of the automakers' plants are located in the South, where legislation and politicians are more hostile to the labor reform that is welcome in said brands.
If successful, a win to organize the Chattanooga VW factory would be a very significant accomplishment for the UAW, especially during an election year where the two main candidates of a hotly contested presidential election — President Joe Biden and the presumptive Republican presidential nominee and former President Donald Trump lean on the U.S. domestic auto industry as a base of support, especially UAW members in swing states like Michigan.
The UAW officially gave their endorsement to President Biden on Jan. 24, 2024.
In a statement released by the White House, President Biden congratulated the Chattanooga VW workers, adding that many of VW's plants outside of the U.S. are unionized.
"As the most pro-union president in American history, I believe American workers, too, should have a voice at work. The decision whether to join a union belongs to the workers," Biden said.
Auto expert and AutoForecast Solutions industry analyst Sam Fiorani said in a statement to TheStreet that while the recent developments are exciting, it is the result of a long period of work, which may not exactly be welcomed by other brands.
"The recent contracts along with President Fain’s dedicated drive for expanding the union’s reach have increased the pressure on all transplants and especially Volkswagen and Mercedes-Benz," Fiorani said.
"All manufacturers should be watching, however the others are less likely to be unionized. It has taken about a decade for the union to work their way into Volkswagen, which should not be taken as an automatic harbinger for other manufacturers, but should keep them on their toes."
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The NLRB said it received the union election petition for 4,300 employees at the VW plant to be represented by the UAW. If both sides cannot agree on the election details, the NLRB will hold a pre-election hearing on March 26 in Atlanta.
Volkswagen, which produces the Atlas SUV and ID.4 electric crossover at the Chattanooga plant, said that it "will fully support an NLRB vote so every team member has a chance to vote in privacy in this important decision."
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