VW’s Labour Chief Backs UAW Union Drive at Tennessee Plant
Volkswagen’s global works council chairman Bernd Osterloh has publicly supported the UAW’s efforts to represent workers at the company’s Chattanooga, Tennessee factory, intensifying debate over unionisation at foreign-owned US plants.
Volkswagen’s top labour representative, Bernd Osterloh, has thrown his support behind the United Auto Workers’ (UAW) bid to represent employees at the company’s US plant in Chattanooga, Tennessee. Osterloh, who chairs VW’s global works council, said the establishment of a German-style works council at the site would require union involvement, and confirmed ongoing talks with the UAW on how this could be achieved.
The move has drawn sharp responses from some US politicians. Republican senator Bob Corker, a vocal opponent of unionisation at the plant, told German newspaper Handelsblatt that allowing the UAW a role would be one of Volkswagen’s “biggest mistakes”. Critics argue that union involvement could threaten the plant’s competitiveness and deter future investment, while supporters see it as a way to secure workers’ rights and introduce a proven model of co-determination.
Volkswagen’s works council model
Volkswagen’s German plants operate under a works council system, which gives employees a formal voice in management decisions. The company has sought to replicate this arrangement in Chattanooga, but US labour law requires that a union be involved in any formal works council. This has led VW to explore a partnership with the UAW, which is keen to expand its presence at foreign-owned factories after decades of declining membership.
Osterloh has made clear that co-determination, joint decision-making between management and workforce, is a non-negotiable part of Volkswagen’s operating philosophy. He stated that setting up a works council is important if the Chattanooga plant is to be considered for additional VW models in future. The company has not confirmed which vehicles might be involved, but the implication is that union cooperation could influence production decisions.
Political and legal hurdles
Osterloh said he intends to meet both Republican and Democratic politicians in the US in the coming weeks to discuss the proposal, but acknowledged that legal questions remain. US law prohibits company-dominated worker representation, so any works council would have to be independent and union-backed. The UAW’s involvement is therefore central to the plan, but the union’s presence remains controversial in southern US states where anti-union sentiment is strong.
The debate over unionisation at Chattanooga is being closely watched by both US and international carmakers, as well as labour groups. Success for the UAW could open the door for similar efforts at other non-union plants operated by foreign manufacturers in the United States.
Osterloh’s intervention signals Volkswagen’s commitment to its German labour model, even as it navigates a very different regulatory and political environment in the US. The outcome of the talks could shape industrial relations at the plant for years to come.
