Volkswagen Union Leader in Germany May Block Chattanooga Plant Expansion

Volkswagen’s top workers’ representative says he won’t give up the fight for unionization at the German automaker’s plant in Chattanooga, Tennessee.

Bernd Osterloh, who is also a member of VW’s supervisory board, told the German daily Suddeutsche Zeitung the failure to achieve a works council in Chattanooga might prevent Volkswagen from building future plants in the U.S. South.

Employees voted 712-626 last week against joining the United Auto Workers union after state Republicans warned that it could hurt the local economy.

Senator Bob Corker came out prior to the vote saying he had it on pretty good authority that Volkswagen would build its new mid-size SUV, the CrossBlue, in Chattanooga if employees rejected the UAW.

Osterloh says U.S. labor law experts will check whether undue pressure was put on employees to reject the UAW.

He adds "all options will be examined" to introduce a "works council" at the only major VW plant worldwide without formal worker representation.