DETROIT, April 17 (Reuters) - A Volkswagen
plant nestled against dense forests and Interstate 75 on the
southern border of Tennessee has become a battleground over
worker representation that could sway the future of the American
auto industry.
The United Auto Workers is attempting for the third time to
organize the 4,300 eligible workers in Chattanooga, where VW
assembles the ID.4 electric SUV. The vote at VW's only nonunion
plant globally is scheduled to begin on Wednesday and conclude
late on Friday.
The UAW, which has been shrinking, sees the VW vote as the first
of a series that would spread unions beyond Detroit-owned
automakers and into the U.S. South, which has been unfriendly
terrain for organized labor. A Mercedes-Benz factory
in Vance, Alabama, may hold a vote soon.
The environment has never been better for the UAW. Public
support for unions has soared in recent years and last autumn
U.S. President Joe Biden walked picket lines outside Detroit,
where the union secured record contracts with the Big Three
automakers: General Motors ( GM ), Ford Motor ( F ) and
Stellantis ( STLA ).
"This is the best chance they've ever had," Cornell
University labor professor Art Wheaton said of the UAW.
For decades, the union has struck out at southern auto plants.
In addition to two narrow losses at VW previously, it sustained
three more significant misses at southern factories owned by
Nissan ( NSANF ).
Pablo Di Si, head of Volkswagen's North American business, told
Reuters last month the company will remain neutral ahead of the
vote.
Union-backing workers at the VW plant hope this time to win,
and say they want better pay and benefits and improved plant
safety.
Kelcey Smith, who joined a union organizing committee after
being hired about a year ago, said the union's deals following a
six-week strike against the Detroit automakers inspired him. The
UAW won record contracts, including double-digit pay increases
and the return of cost-of-living adjustments.
Smith wants some of those perks himself.
"It showed not only me, but the rest of the country and the
world, that if you just come together as a collective group, you
can bring change for yourself and your families," he said.
Some employees at the plant say the risks of organizing
outweigh the potential rewards, worrying that increased labor
costs for VW could endanger job security.
Anti-UAW organizations have also made their voices heard, with
billboards near the Chattanooga plant urging passersby to visit
a Web page that spotlights a union bribery scandal that resulted
in federal convictions of several former UAW leaders. The
current UAW leadership was elected after that issue was resolved
with federal officials.
The opposition will test UAW President Shawn Fain as he embarks
on an ambitious organizing drive across the South and West. Fain
and his team have committed $40 million through 2026 to organize
more than a dozen nonunion shops owned by EV makers like Tesla
and foreign automakers including Toyota Motor ( TM ).
Fain has rejected descriptions of nonunion automakers as the
enemy, portraying those workers instead as future UAW members.
RIDING DETROIT WINS
Victor Vaughn, 55, who has been part of the volunteer
committee of VW employees who organized meetings at the local
UAW hall, said momentum built within their ranks after the
union's wins in Detroit.
"They work for different companies, but they're just like
you and me, and they're fighting for the same issues," he said.
The new contracts in Detroit - including a 25% wage increase
over four years - also caught the attention of Biden, who is
courting UAW members as key voters, especially in Michigan, in
this autumn's election. His opponent, former President Donald
Trump, has also held events in Michigan to woo auto workers.
"I want this type of contract for all autoworkers," Biden said
at a UAW event last November. He also supports the union's
broader organizing efforts.
Many nonunion automakers, including VW, offered raises after the
Big Three talks, which many analysts saw as a move to keep their
plants union-free.
Matching the UAW would be even costlier. Tesla would incur
$1.2 billion in additional labor costs this year if it were to
match UAW pay, according to Deutsche Bank.
Winning the VW vote is critical, however, because the UAW
continues to shrink, from a high of 1.5 million members in the
1970s to 370,000 last year, its lowest level since 2009. The
current organizing push targets 150,000 nonunion workers, which
would double the UAW's size.
The Volkswagen facility is the first of this group to gather
enough worker support to hold an election with the National
Labor Relations Board.
While UAW officials are confident about their chances in
Chattanooga, narrow losses in 2014 and 2019 still haunt them.
Volkswagen has been more open to a UAW election in this
round, said Georg Leutert, director of automotive at IndustriALL
Global Union, a Switzerland-based federation of unions. However,
some managers in the Tennessee plant have resisted unionization,
he said.
Officials with IG Metall, a German union representing VW
workers in that country, support the UAW.
Tennessee is a right-to-work state, meaning UAW membership
would not be mandatory for plant workers.
Tennessee Governor Bill Lee said earlier this month that VW
workers would "risk their futures" by voting to unionize.
Tennessee has a GM plant in Spring Hill that is unionized.
For VW workers in Tennessee like Darrell Belcher, a 13-year
veteran at the plant who previously opposed the union, the UAW
offers no guarantees. He cited the recent layoffs or buyouts of
factory workers at Stellantis ( STLA ) and GM.
Belcher asks co-workers excited to join the UAW: "What do
you actually expect to get, and what are you willing to lose?"