Finance
Volkswagen workers ratify first UAW contract, marks win for labor in the South
Published by Global Banking & Finance Review®
Posted on February 20, 2026
2 min readLast updated: February 20, 2026
Tags:Manufacturing
Quick Summary
Volkswagen workers in Chattanooga, Tennessee approved a UAW labor deal on Feb 19, 2026, finalizing the plant’s first contract. The ratification marks a major win for UAW President Shawn Fain and advances union gains in the South.
By Nora Eckert
DETROIT, Feb 19 (Reuters) - Workers at a Volkswagen plant in Chattanooga, Tennessee, on Thursday voted 96% in favor of a labor deal negotiated by the United Auto Workers union, marking one of the most significant victories of UAW President Shawn Fain's tenure.
The South has been tough for the union to crack, and Fain has made it a mission to organize plants in the region and across the United States since he was elected president in 2023.
Under the four-year pact, workers are set to receive 20% wage increases, as well as improvements in healthcare and job security.
“Volkswagen workers have moved yet another mountain,” Fain said in a statement.
The union's push at Volkswagen was aimed at matching the massive wins in Detroit in 2023 that followed a six-week strike at Ford Motor, General Motors and Stellantis and resulted in a 25% wage increase and cost-of-living adjustments.
The union and the company were in negotiations for about 18 months on the details of the agreement at the German automaker's sole U.S. plant, which produces the electric ID.4 SUV. They arrived at a tentative deal earlier this month.
"This milestone reflects our shared commitment to competitive wages, strong benefits, and the long‑term success of our employees and operations," Volkswagen said in a statement.
Workers at the plant voted 73% in favor of joining the UAW in April 2024. The labor group narrowly lost votes at the same plant in 2014 and 2019.
Organizing activity in the South has slowed since the union lost a vote at a Mercedes plant in Alabama in 2024.
(Reporting by Nora Eckert and Mrinmay Dey; Editing by Edwina Gibbs)
Key Takeaways
- •Volkswagen workers in Chattanooga approved a UAW-negotiated labor deal on Feb 19, 2026.
- •The ratification establishes the factory’s first union contract.
- •The result is a major win for UAW President Shawn Fain’s organizing efforts.
- •The agreement includes wage gains, improved health care and bonus provisions.
- •The vote underscores growing union momentum at Southern auto plants.
Frequently Asked Questions about Volkswagen workers ratify first UAW contract, marks win for labor in the South
1What is the main topic?
Workers at Volkswagen’s Chattanooga, Tennessee plant voted on Feb 19, 2026 to approve a UAW-negotiated labor contract, establishing the factory’s first union agreement.
2Why is this significant?
The ratification marks a landmark for organized labor in the South and a key victory for UAW President Shawn Fain as the union expands beyond the Detroit Three automakers.
3What does the contract include?
While details vary by source, the agreement features wage gains, improved health care and bonuses, reflecting priorities workers pushed for in first-contract talks.
