The VW workers will be voting on whether or not they are in favor of the establishment of a German-style "works council" system at the plant. If the workers vote for the union, this would be the first works council established in the United States and it would be the first time in decades that the UAW successfully organized a foreign-owned auto plant that's not a joint venture with a Detroit Three automaker.
The National Labor Relations Board set the vote as a result of a deal between Volkswagen Group of America and the union.
"Volkswagen is known globally for its system of cooperation with unions and works councils," UAW President Bob King said in a statement. "The UAW seeks to partner with (the company) and a works council to set a new standard in the U.S. for innovative labor-management relations that benefits the company, the entire workforce, shareholders and the community."
Shortly after he was elected president in 2010, King vowed to organize at least one plant operated by an Asian or German automaker during his tenure. His term as president expires in June.
"Volkswagen Group of America and the UAW have agreed to this common path for the election," Frank Fischer, chairman and CEO of Volkswagen Chattanooga said in a statement. "That means employees can decide on representation in a secret ballot election, independently conducted by the NLRB. Volkswagen is committed to neutrality and calls upon all third parties to honor the principle of neutrality."
The automaker said it has had positive experience with union representation and at other Volkswagen Group plants around the globe. A works council has specific rights and responsibilities similar to the German "Betriebsrat". Under the model, a works council represents employees on a wide range of internal matters at the plant, while! their union represents them on terms and conditions such as hours, pay and benefits.
"We believe the American culture is democracy. We believe if the employees in Chattanooga choose to go for an election, we support them and this is our position," Michael Horn, CEO of Volkswagen of America had said last month.
The company said Chattanooga is the only major Volkswagen assembly facility without a union and that a works council at the Chattanooga plant would have a seat at the VW Global Group Works Council.
"With a local works council, workers would have a voice they can use to make Volkswagen stronger; in safety, job security and efficiency," said Jonathan Walden, a Volkswagen paint technician, in a statement. "Global representation means Chattanooga workers may have a strong voice in seeking new products and bringing more jobs to Tennessee."
Volkswagen is planning to spend $7 billion in North America over the next five years as it expands production and adds new products, including a new midsize SUV that Martin Winterkorn, CEO of Volkswagen AG, has said is being considered for Chattanooga. He said that the outcome of a UAW vote would have no impact on that decision..
While Volkswagen doesn't oppose the formation of a union at the Tennessee plant, leading political figures in the state do, including Gov. Bill Haslam and U.S. Sen. Bob Corker — a former mayor of Chattanooga.
Republican interest groups also have pressured workers to vote against the UAW and have purchased billboards in Tennessee to campaign against the UAW.
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