VW Lays Off 500 Contract Employees at Chattanooga Plant Due to Low Demand image

VW said it will cut 500 jobs in Chattanooga due to low demand for the Passat.

Frank Fischer, the head of VW’s Chattanooga operations, said that the 500 jobs will be cut from the Aerotek contract workforce the company has used. The plant will now have 2,800 employees. VW said that it still expects this year to sell more Passat vehicles compared with 2012, it’s just that the rate of growth have currently slowed.

Frank Fischer said that it’s not only the Passat who sees a slow in demand but the entire midsize sedan segment, while truck and SUV sales have increased. He added that the facility has 650 contract employees, from which 500 will be laid off at the end of May, but paid until the end of June.

On another matter, last month VW said it will let workers at Chattanooga plant, Tennessee, decide whether they want union representation, having as main option the UAW. Jonathan Browning, head of Volkswagen of America, present at the New York Auto Show, said that the automaker’s workers have a strong voice when it comes to taking such an important decision.

“We certainly are interested in hearing from the employees as to whether they believe formal representation is something that they desire. If employees vote in favor of formal representation, then it’s important to understand that there are a number of alternatives that may or may not include the UAW,” said Browning.

Source: hispanicbusiness.com