Volkswagen confirmed it has reached a first tentative contract agreement with the United Auto Workers (UAW) for union employees at its Chattanooga plant nearly two years after workers voted to unionize.
“Volkswagen is pleased to confirm we have reached a tentative agreement with the UAW for a first union contract in Chattanooga,” the company said in a statement on Wednesday.
“This comprehensive agreement will provide meaningful changes for our workforce, including increased wages, reduced health care costs, and more paid time off. All these benefits recognize and reward the hard work and dedication our team members give every day,” the company added.
According to the UAW, the tentative agreement delivers what the union is calling “historic gains” for Chattanooga workers, led by a 20 percent general wage increase. The deal also includes significant financial bonuses, with workers set to receive $6,550 upon ratification and annual bonuses of $2,550 for the life of the contract.
🚨 UAW REACHES TENTATIVE AGREEMENT WITH VOLKSWAGEN IN CHATTANOOGA, MARKING HISTORIC BREAKTHROUGH FOR SOUTHERN AUTOWORKERS 🚨
Autoworkers at Volkswagen’s Chattanooga plant have won a historic tentative agreement with the company. After making history as the first Southern… pic.twitter.com/icTPTsELmD
— UAW (@UAW) February 5, 2026
The UAW said the agreement also preserves high-quality health care with no cost increases, lowers out-of-pocket expenses, and strengthens job security, safety standards, paid time off, scheduling protections, and workers’ rights in discipline and grievance procedures.
“For years, Chattanooga workers were told to settle for less while Volkswagen made record profits. So, the workers stood together and won their union—and now they’ve secured a life-changing first agreement. This deal proves what happens when autoworkers stand up and demand their fair share,” UAW President Shawn Fain said in a statement.
The tentative agreement is now subject to a ratification vote by the plant’s UAW-represented employees.
Negotiations between the UAW and Volkswagen to secure a first contract for union workers have extended for nearly two years since employees voted to unionize in April 2024.
In December, a petition seeking to decertify the UAW was launched, citing the lack of a finalized contract and stalled negotiations.
At the time the petition was filed, workers had also voted to authorize a strike after contract talks with Volkswagen had stalled.
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Kaitlin Housler is a reporter at The Tennessee Star and The Star News Network. Follow Kaitlin on X / Twitter.
Photo “UAW Workers” by UAW.
