Volkswagen (VW) announced on Wednesday, November 22, 2023, that it will hike production workers's salaries in the Chattanooga, Tennessee Plant as its defense strategy against the United Auto Workers (UAW) Threat.
The UAW strike against plants run by Detroit's "Big Three" automakers is a thing of the past, but it still affects automakers that are not in the union; many of them have heard the message and raised pay.
Volkswagen's Defense from UAW Threat to join the bandwagon
The non-automaker stated that Starting in December, workers at the Tennessee site will get an 11% pay raise. Starting in February, the wage progression plan will be shortened.
VW (VLKAF) currently makes the Atlas SUV and the ID.4 electric crossover SUV within its Chattanooga plant. Also, the company wants to make more parts for electric vehicles (EVs) in North America, such as a battery plant in Ontario, Canada, and an EV that costs less than $35,000.
After the UAW and the three biggest automakers in Detroit agreed to a new deal that gave union members more money and better perks, this was done.
Meanwhile, the UAW is currently going after non-union automakers since Volkswagen has raised pay to keep up with the times, along with Honda, Toyota, and Subaru.
Notably, Hyundai said salaries will increase by 25% at its Alabama and Georgia plants over the next four years.
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About Volkswagen Chattanooga
Chattanooga is in Tennessee, USA. It is in Hamilton County. It is in the three-state area that Alabama and Georgia touch.
Along with 3,442,350 square feet of space, it is home to a giant industrial complex that spans 1,400 acres (5.6 km²). An expansion was recently done on the building, which added 26.36% more square feet.
The facility employs approximately 3,800 workers and is currently producing the Volkswagen Passat and Volkswagen Atlas, two critical models in Volkswagen's automotive lineup.
The facility offers a comprehensive range of employee amenities, fostering a supportive and convenient work environment. Employees can access near-site medical, dental, vision, and rehabilitation services through a partnership with Erlanger.
Additionally, a child care center is conveniently located adjacent to the plant, easing the burden of child care for working parents. A Health and Fitness Center is within their plant for health and wellness.
The facility also demonstrates a solid commitment to the local community through financial and volunteer support of local charities, and it actively promotes inclusivity with its Diversity Advisory Committee.
In terms of education programs, the facility is involved in several initiatives. These include the Robotronics Program and the Automation Mechatronics Program, both focusing on advanced manufacturing technologies.
There is also the Mechatronics Akademie High School Program, an innovative initiative that integrates high school education with technical skills training, preparing students for future careers in technology and engineering.
Furthermore, the facility showcases environmental stewardship with on-site protected wetlands supporting natural ecosystems. It uses energy-efficient LED lighting, saving about 262,500 kilowatt-hours yearly compared to fluorescent lights.
More so, its 33,000 solar panels generate roughly 12 million kilowatt-hours of energy annually, emphasizing the facility's commitment to renewable energy and sustainability.
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