💎 Fed’s first rate cut since 2020 set to trigger market. Find undervalued gems with Fair ValueSee Undervalued Stocks

UAW election by set of VW Tennessee workers upheld by NLRB

Published 04/13/2016, 04:02 PM
© Reuters. A general view of the Volkswagen plant in Chattanooga
VOWG_p
-

By Bernie Woodall

(Reuters) - The U.S. National Labor Relations Board voted 2-1 to uphold a December election in which a small group of workers at Volkswagen AG's (DE:VOWG_p) Chattanooga, Tennessee plant voted to join the United Auto Workers union, the NLRB said on Wednesday.

VW had asked for a review of the election, which involved about 160 skilled trades workers at the plant, in which 71 percent voted to join the UAW. The plant has a total hourly workforce of about 1,400 workers.

The UAW will now see if it has additional leverage to press VW to agree to come to the negotiating table for the 160 workers, members of UAW Local 42 in Chattanooga, to bargain on wages and benefits.

The members of UAW Local 42 would be the first workers at a foreign-owned auto assembly plant to gain collective bargaining rights in the southern United States.

While the unit of skilled trades workers, who maintain the assembly machinery, are a fraction of the hourly work force, bargaining by VW with them could serve as a launching pad for the union’s efforts to organize other foreign-owned plants in the South.

Officially, the NLRB voted to keep in place a regional director's ruling that affirmed the December election.

VW said in a statement, "We are reviewing the decision and evaluating our options."

In the past, VW has said it does not want workers to be separated into fragmented representation groups.

Gary Casteel, UAW secretary-treasurer and head of its organizing efforts in the South, said he hopes VW will "immediately" work with Local 42 "in the German spirit of co-determination."

Casteel referred to VW's policy of allowing worker input in management decisions, which it has done at nearly all of its factories outside the United States through "work councils" that include both plant and office employees.

The UAW in February filed charges with the NLRB claiming that VW had “unlawfully continued to refuse to bargain.”

The NLRB board member who dissented said the skilled trades workers do not work separately from the rest of the VW plant's workers. The two NLRB members in the majority said the company had failed to prove an "overwhelming community of interest" between the skilled trades employees and the rest of the plant's hourly workers.

© Reuters. A general view of the Volkswagen plant in Chattanooga

The union narrowly lost a February 2014 election to represent all of VW's Chattanooga hourly paid workers.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.