Volkswagen of America has announced an 11% pay raise for Chattanooga assembly plant production workers.
The increase is effective starting in December and a compressed wage progression timeline begins in February.
Go deeper with GlobalData
“Volkswagen of America annually evaluates compensation for our production team members at the end of the year to ensure we continue to offer a competitive and robust compensation package designed to attract and motivate employees who make our daily operations possible at the plant,” the automaker said in a statement.
“All our production team members also already enjoy a quarterly attendance bonus and an attractive benefits package. The company provides matching contributions to employees’ 401(k)s; a defined contribution retirement plan; multiple options for medical coverage plans to serve the varying needs of our workforce, including prescription, dental, and vision benefits; paid parental leave; a tuition reimbursement program; and an employee vehicle leasing benefit for themselves and their family members.”
US operators of non-union plants, mostly in southern states, have been announcing wage hikes since the United Auto Workers (UAW) union reached agreement with the Detroit Three automakers on a new pay deal good until the end of April 2028 which includes a 25% increase in base wages and will cumulatively raise the top wage by 33%, compounded with estimated cost of living adjustments to over US$42 an hour.
The deal included a $5,000 bonus and an 11% immediate pay hike upon ratification. The contract also hiked wages of current temporary workers by 150% by 2028 and would make them permanent employees.
The UAW has promised to step up its long-running campaign to ‘organise’ the non-union plants such as VW’s.
