Volkswagen’s Tennessee manufacturing plant may become the South’s first union to bargain on behalf of U.S. employees of a foreign automaker – if a proposed policy change at VW clears the way for the United Auto Workers to bargain on behalf of employees there. Art Wheaton, automotive industry expert and senior lecturer at Cornell University’s ILR School, says the UAW-VW agreement will benefit all parties.

Wheaton says:

“The UAW has been studying works councils and Germany's co-determination laws for many years. Germany has been successful in paying high wages and making good profits.

“U.S. Labor law does not allow works councils without union representation. Both VW and Mercedes-Benz plants in the U.S. are exploring works councils for their American plants. All of their other plants around the world have these works councils.

“The UAW is giving up significant control and legal rights under collective bargaining to support these works councils and give workers a voice at the global works councils. Without a union, neither VW nor Mercedes-Benz workers from the U.S. can fully participate in the German companies system of governance and decision making.”

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