Volkswagen is leaving open the door to “representation” for its Tennessee employees following the UAW’s decision to withdraw its appeal with the National Labor Relations Board (NLRB), relating to what it referred to as interference in elections for the automaker’s Chattanooga workers.
The UAW’s surprise decision follows a 712-626 votes defeat for the labour body at the plant to represent workers, after what the UAW described as: “A widely-publicised coercive campaign conducted by politicians” to scupper union plans.
Go deeper with GlobalData
Former Chattanooga CEO and chairman, Frank Fischer, recently said however, staff had not made a decision against the establishment of a Works Council.
This form of representation is extremely common in Germany and Fischer noted the automaker had found “great enthusiasm” for the idea of an American-style Works Council, although it is now referring to unspecified “co-determination” as a way forward.
“We welcome the decision by the UAW,” said a Volkswagen statement sent to just-auto from Chattanooga. “Important tasks lie ahead of us: To build excellent cars for the American market in Chattanooga, to create good, secure jobs in Tennessee and to set up a new, innovative form of co-determination in the US.
“Volkswagen Chattanooga is seeking to establish good opportunities for consultation and representation for all its employees, opportunities that are normal practice for the Volkswagen team all over the world – that applies for those employees who voted against the UAW – just as it applies for those who voted in favour.”
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataThe UAW reacted with fury to losing the vote in Tennessee, with president, Bob King, citing “unprecedented interference by anti-labour politicians and third parties,” although he added the union was now ready to “put the tainted election in the rear-view mirror.”
Senator Bob Corker (R), who as mayor of Chattanooga from 2001-2005 worked to develop the Enterprise South Industrial Park, currently housing Volkswagen’s North America headquarters, said this week the UAW’s decision to to withdraw its appeal backed his assertion the labour body’s objection was a “sideshow” to deflect scrutiny of its Chattanooga defeat.
“This 11th hour reversal by the UAW affirms what we have said all along – that their objection was nothing more than a sideshow to draw attention away from their stinging loss in Chattanooga,” said Corker.
The UAW’s campaign to secure unionisation at the Chattanooga plant received widespread backing from other international labour organisations, including Germany’s IG Metall and Canada’s automotive body, Unifor.
