Feb 20, 2026 - Business

Volkswagen workers ratify first UAW contract in Tennessee

Joann Muller

Two men wearing Volkswagen Chattanooga shirts line up to place their ballots in a voting box as they ratify their first UAW contract. Background has a Volkswagen Group sign. — VW workers in Chattanooga, Tennessee, vote on their first union contract. Image courtesy of UAW.

Volkswagen workers in Chattanooga, Tennessee, voted 96% in favor of their first labor contract negotiated by the United Auto Workers union.

Why it matters: The contract, which includes 20% wage increases over four years and lower healthcare costs, is considered a historic breakthrough in the UAW's decades-long effort to unionize foreign-owned auto plants in the South.

What they're saying: "Volkswagen workers have moved yet another mountain," said UAW President Shawn Fain.

"From having the courage to stand up and form their union, to having the backbone to authorize a strike and hold out for a contract that honors their worth, VW workers are leading the way for the entire labor movement and non-union autoworkers everywhere."

What we're watching: The UAW hasn't said which automaker it will target next. In the past, it tried and failed to organize workers at a Mercedes-Benz plant in Alabama.

Labor experts say the union still faces an uphill battle.

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Volkswagen workers ratify first UAW contract in Tennessee

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