Volkswagen employees in Tennessee could help determine the future of United Auto Workers
UAW desperately needs to break through at a so-called transplant factory.
"It's important for the UAW to nab one of the plants to rebuild membership as well as the clout," said Michelle Krebs, senior analyst with Cox Automotive. "But I'm not optimistic it's going to happen."
UAW's ability to pay salaries for the industry is shrinking, says Kristen Dziczek, Vice President of Industry, Labor and Economics of the Automotive Research Center. "When Detroit car manufacturers lose share, the UAW loses part."
UAW says the average employee of the Volkswagen plant makes about $ 21 an hour, compared to $ 28 an hour at a unionized car factory. Volkswagen's annual salary, including overtime and bonuses, at the Chattanooga facility averaged $ 54,700 last year.
"We are among the best paying employers in the region," the company said in a statement.
Krebs said the gap between unionized and nonunion plants is shrinking. Ten years ago, the union made concessions to keep GM, Ford and Chrysler alive in the face of lower cost competition from foreign automakers. And it has never been completely restored. Getting a foothold in a transplant factory would give the UAW an edge.
"If all the plants were UAW represented, they would have more power over the car manufacturers," she said. But that has not been the case for the American automotive industry since the early 1980s when transplants first began to open.
The VW plant in Chattanooga seems to be one of UAW's better opportunities to win a vote. A member of the German car association's association sits on VW's board. Over 100 VW plants worldwide use union-represented workers – everywhere, but in China and at the Chattanooga facility.
"Chattanooga workers deserve this vote," said UAW spokesman Brian Rothenberg.
During the last vote in Chattanooga five years ago, the Union failed, supporting 47% of the voting staff. Some Republican politicians in Tennessee, a state known for their tough anti-union policies, felt that VW had been too encouraging to the workers. After that, UAW voted for the company to try to "give an atmosphere of freedom to make a decision."
But this time, the two sides have collapsed far more. Each side has filed complaints with the Labor Union, which is to monitor this forthcoming vote.
Most of the foreign owned car factories are located in the South, which has a much lower union than in the industrial Midwest, where most of the unified Detroit automobile factories are located. It also means that the UAW is facing an uphill battle, even though it wins the VW vote.
"I don't know if it necessarily translates to make it easy to win over workers with someone else," Dziczek said. "It would be an important victory, but not enough."
