Volkswagen proposes wage hike and bonus in ongoing negotiations with UAW

Published 14/02/2025, 16:46
© Reuters.

Investing.com -- Volkswagen (ETR:VOWG_p) has increased its offer in ongoing negotiations with the United Auto Workers (UAW), proposing a 16.5% wage increase for employees, a first-time ratification bonus, improved cost-of-living allowance, and reduced health care costs. The company made the offer in an effort to secure a deal and future Volkswagen jobs in Chattanooga.

The UAW, representing 4,000 Volkswagen employees at the Chattanooga plant, has been pushing for its first union contract with the German automaker. As they seek to improve conditions at their plant, the workers are demanding better wages, stronger benefits, and protections similar to those enjoyed by U.S. unionized auto workers.

The demands include higher wages, affordable health care, and retirement security.

Volkswagen's latest offer comes amid the workers' determination to raise standards at the plant and reflect the company’s record-breaking profits. In 2023, Volkswagen reported earnings of $24.4 billion.

The workers and a 20-person bargaining committee are working to secure comprehensive contract language that delivers real gains and ends what they perceive as an era of exploitation since the plant's opening in 2011.

In addition to higher wages and affordable health care, the UAW members are negotiating over a broad set of workplace issues. These include stronger safety standards, fair scheduling policies, paid leave, protections against unjust discipline, and a meaningful voice in workplace decision-making. Their goal is to ensure fairness and reward for their hard work in every aspect of their working conditions.

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