Volkswagen USA Doesn't Want A Union, But Workers Will Get The Final Say

Derek Kreindler
by Derek Kreindler

More drama in the ongoing Volkswagen unionization fight in Chattanooga: Volkswagen USA is not keen on the union, while Volkswagen’s management board is divided on the matter. One thing that seems certain is the prospect of a secret ballot vote on the union, according to Reuters.

TTAC readers are familiar by now with the drama over organization drives, union cards, and the like. But the report by Ben Klayman and Bernie Woodall (to veteran reporters with solid contacts at VW) is the first look at VW’s mindset, and the differing opinions both in the USA and Germany. Per Woodall and Klayman

While VW’s U.S. executives are hostile to the United Auto Workers, the eight-member management board may still ask the union to help set up a German-style employee board at the Chattanooga plant, said the person, who asked not to be identified.

The top executives feel that any final decision must be approved by the workers in a secret ballot to protect VW’s reputation and assuage investors and U.S. politicians, said the source, who did not identify the VW executives.

Beyond the weighty issue of union organization by the UAW at a foreign plant in the south is whether Chattanooga will get additional product. VW dealers are hungry for a crossover to take on vehicles like the Chevrolet Traverse and Honda Pilot, and Chattanooga is a proposed location for the car. But the vehicle (based on the CrossBlue concept, above) has become the center of a game of tug-of-war for both pro and anti union camps, who variously want to see the car built there or in Mexico for a whole host of reasons, including punishing Chattanooga for not recognizing the UAW (or alternately, rewarding it for doing so) or taking advantage of the cost savings and building it in Mexico, while conveniently skirting the UAW issue at the same time.

Derek Kreindler
Derek Kreindler

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  • Billfrombuckhead Billfrombuckhead on Oct 12, 2013

    Unions have nothing to do with Detroit's troubles. Labor has very little to do with the price of a car, let alone the designs and mergers. It wasn't the UAW that designed the Vega or the Citation. The UAW had nothing to do with the failure of Ford's "Premium Luxury Group" or Explorers rolling over. It wasn't the UAW behind the disastrous merger of equals"oft Chrysler and Daimler. In fact, the UAW did much to help the Saturn and Neon projects. It's easy to regurgitate rightwing talking points but they really have no basis in reality. Much of this anti-UAW sentiment is simply disguised racism. Remember that MLK's "I have a Dream" speech was first given at Detroit's Cobo Hall at a joint NAACP/UAW rally.

  • Big Al from Oz Big Al from Oz on Oct 12, 2013

    @billfrombuckhead You Say; Unions have nothing to do with Detroit’s troubles. Labor has very little to do with the price of a car, let alone the designs and mergers. I Say; Well you had better see how the auto industry in Australia is not viable because of high wages. Have a look at how the UAW support(ed) all of the uncompetitive work practices, tariffs, regulations, etc. The UAW is as bad a the Big 3 managers for accepting the UAW mismanagement and poor decisions. On decision making I give the UAW a 2 out of 10. I suppose reality and accepting accountability isn't a strong point for a unionist, it's always someone else's fault.

    • See 5 previous
    • DenverMike DenverMike on Oct 13, 2013

      @BAFO - I've coined a term for the Aussie auto industry/market. I call it the “Galapagos Effect”. Charles Darwin had it correct.

  • Kwik_Shift_Pro4X Where's the mpg?
  • Grg These days, it is not only EVs that could be more affordable. All cars are becoming less affordable.When you look at the complexity of ICE cars vs EVs, you cannot help. but wonder if affordability will flip to EVs?
  • Varezhka Maybe the volume was not big enough to really matter anyways, but losing a “passenger car” for a mostly “light truck” line-up should help Subaru with their CAFE numbers too.
  • Varezhka For this category my car of choice would be the CX-50. But between the two cars listed I’d select the RAV4 over CR-V. I’ve always preferred NA over small turbos and for hybrids THS’ longer history shows in its refinement.
  • AZFelix I would suggest a variation on the 'fcuk, marry, kill' game using 'track, buy, lease' with three similar automotive selections.
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