Volkswagen Factory Workers Will Block Any Investments in the South - Automotive | Financial Buzz

Volkswagen Factory Workers Will Block Any Investments in the South

Volkswagen, TNThe board of directors at Volkswagen has long wanted to make the southern part of America a staple for the German carmakers factory. However, the workers from the Volkswagen factory in Tennessee are frustrated that they have yet to be freely unionized.

On Friday the factory workers voted against being represented by United Auto Workers union (UAW) that is the set up in which the car company is accustomed to having. This is where both sides clash, the
German carmaker believes that this style of union can insure safety but on the other hand many people including U.S. senate representatives believe that this style can limit the job growth opportunity.

“I can imagine fairly well that another VW factory in the United States, provided that one more should still be set up there, does not necessarily have to be assigned to the south again,” said Bernd Osterloh, head of VW’s works council. “If co-determination isn’t guaranteed in the first place, we as workers will hardly be able to vote in favor” of potentially building another plant in the U.S. south, Osterloh, who is also on VW’s supervisory board, said.

This issue has received the attention of the president and the Republican senator Bob Corker. Corker made it very clear that he has no problem awarding the factory another model if the workers rejected (UAW) again. President Obama who is siding with the workers, believes that the efforts from the workers will make a statement to other carmakers that want to set up in America.

The member panel consists of 10 labor members and 10 management members; they will try to find a resolution to this issue. Both sides made it clear that the Tennessee factory is vital for the state’s economy; both sides will be again meeting this week and in the future to try to strike a deal that both parties are happy with.