UAW files suit against Volkswagen after they announce production cuts and voluntary layoffs
UPDATE: Employees voiced their frustration with the layoffs at a rally Thursday afternoon in front of Volkswagen’s main entrance.
A year ago, workers at VW voted by a nearly 3 to 1 margin to unionize in hopes that a bargaining contract would bring them more financial security and benefits.
However, Thursday’s news left many of them wondering if they will even see that contract come to fruition.
They belted various chants in support of the union, including ones that said they would be willing to go on strike if they don’t get their demands met.
Many of them are wondering if they will be laid off if they do not voluntarily quit.
One employee on the shift that’s being eliminated, Matthew Wrede, said, “It was kinda shocking, because we kinda got left in the dust with everything, and kinda surprised a lot of people.”
Many stated they feel this action is designed to weaken the union’s efforts.
Another employee, Gavin Langston, said, “They’re absolutely trying to scare us… I think now they’re realizing just how much support we’ve got.”
Wrede added, “I feel like they’re doing it to try to save money because the contract talks have been kinda back and forth pretty rough lately. They know what we want, and I feel like they’re using this as an excuse.”
Others shared their concern on what it means for the local economy.
Michael Accetturo, another Volkswagen employee, said, “I feel that it is going to be a great harm to our community, and it’s going to take away economic prosperity for a lot of businesses around here. If we lose 500 people out of this plant, that’s going to hurt. That’s going to hurt everybody.”
They’re especially concerned about how it will hurt their fellow employees.
Langston said, “There’s people on my line that haven’t even been here for a year and a half and they’re amazing, I would hate to see that happen to anybody.”
CHATTANOOGA, Tenn. (WDEF)- The Volkswagen Plant in Chattanooga has announced that they are cutting production at the Chattanooga plant and asking for voluntarily layoffs.
They said in a full statement:
“Volkswagen Group of America’s (VWGoA) Chattanooga plant will return to a primarily two-shift production model beginning on March 31. This decision reflects the need for flexibility and a profitably-run business to support continued investment and growth in the U.S. market.
As part of Volkswagen Group’s global efficiency programs, we are optimizing our production capacity across all locations. Given the currently cautious demand for EVs in the U.S., we are adjusting our production in Chattanooga accordingly. By consolidating production into a highly efficient two-shift model, we ensure that our operations remain competitive and agile.
To accommodate this change, we are offering production employees a voluntary attrition program with competitive benefits, including severance packages, retirement options, and education programs in partnership with the State of Tennessee. Rightsizing our business ensures we remain agile and competitive in a dynamic industry and economic environment. We remain committed to our team members, our customers, and our presence in Chattanooga. This change supports that commitment.”
Meanwhile, the UAW responded to this announcement arguing that this announcement is related to the ongoing negotiations.
Their president, Shawn Fain, said in a statement:
“Nearly a year ago, thousands of Volkswagen workers in Chattanooga voted to join the UAW, to win the respect and dignified life that union autoworkers at the Big Three have enjoyed for generations.
Since then, the company has failed to meet the basic standard at the bargaining table that 150,000 American autoworkers have won at Ford, General Motors, and Stellantis.
Volkswagen is the second most profitable automaker in the world. On Tuesday, the company reported over $20 billion in profits in 2024. And on Wednesday, they announced their intention to cut a shift at their single American plant, in Chattanooga, Tennessee.
This is a company that makes 75% of their North American products in Mexico, paying highly exploited workers around $7 an hour to sell cars for tens of thousands of dollars in the US. They do this to avoid paying a living wage and drive a race to the bottom in the auto industry. It’s bad for workers everywhere.
And instead of coming to a fair agreement for their American autoworkers in Tennessee, Volkswagen is choosing to attack American auto jobs.
The UAW has notified the Trump Administration of Volkswagen’s unacceptable, anti-union, anti-worker, and anti-American conduct. It is no accident that they want to ram through a layoff in America in the days before expected auto tariffs take effect, as they profit from high exploitation labor in Mexico.
The 4,000 autoworkers in Chattanooga deserve better. America deserves better. And the UAW is going to fight like hell to deliver for Chattanooga, for Volkswagen autoworkers, and for the whole working class.”
This latest charge highlights a continuing trend of union-busting tactics by Volkswagen aimed at silencing American workers. The UAW is committed to holding the company accountable and protecting workers’ rights on the job.”
The Chattanooga plant currently produces the SUV Atlas and Atlas Cross Sport, and the electric vehicle the ID4.
It is worth noting that in their Q4 financial report, the sales of the ID4 fell by 93.9%, as only 646 vehicles of that model were sold.
Hamilton County Mayor Weston Wamp made the following statement regarding the decision:
“Unfortunately, we are already experiencing the negative impacts of the UAW’s presence in Hamilton County. In most communities where the UAW has gained a foothold, their lofty promises to employees have, in reality, led to job losses and dysfunction.”
