German union boss warns VW about avoiding US unions image

The incoming leader of an influential German union warned Volkswagen AG about trying to avoid unions in Tennessee, where the German automaker has an assembly plant.

Detlef Wetzel, running unopposed in a late November election to be the head of IG Metall, said companies like VW and industrial conglomerate ThyssenKrupp AG try violating the pro-labor pledges made in their home market by setting up shop in the anti-union U.S. South. ThyssenKrupp has a steel plant in Alabama.

“Low wages and union-free areas: that’s not a business model that the IG Metall would support,” he told Reuters in an interview. “If companies – from VW to ThyssenKrupp – entered these (southern U.S.) States in order to be free of unions, meaning to not acknowledge a fundamental pillar of any democracy, then we’re in North Korea. That cannot be accepted.”

IG Metall officials have supported efforts by the United Auto Workers union to represent the hourly workers at VW’s plant in Chattanooga, where it builds the Passat sedan. IG Metall represents VW’s workers in its home country.

The UAW has pushed VW to accept a German-style labor council at the Tennessee plant that would require the involvement of the U.S. union under American labor law. Volkswagen said in September that it was in talks with the UAW about establishing such a labor council at the Chattanooga plant, which would be a first for the U.S. union.

In Germany, a works council represents both blue-collar and white-collar workers. It represents employees on work rules in the plants and some other dealings with the company, but IG Metall negotiates wages and benefits.

Via Reuters