Brent Snavely

Detroit Free Press

UAW certified at highest level of representation under new Volkswagen labor policy in Chattanooga.

Rival organization has not yet applied for its members to be certified.

The UAW has been certified as the representative of more than 45% of Volkswagen's workers in Chattanooga, Tenn., a major victory for the union, which has been trying to gain a foothold in the South and in foreign auto plants.

The results of the independent audit of union membership clear the way for the union to meet regularly with management on workplace issues. The UAW said Monday night it was not told the exact percentage by VW but believes the final tally could be more than 50%, which would give the union more leverage.

The UAW has a history of failed elections to unionize Asian- and German-owned assembly plants in the South. The 45% threshold is key and brings the union a step closer to becoming the exclusive bargaining representative for the plant workers.

"As anticipated, we surpassed the highest level under Volkswagen's new Community Organization Engagement policy, and the local leadership is ready to move forward with additional conversations with the company," UAW Secretary-Treasurer Gary Casteel said in a statement.

The UAW also reiterated Monday that it believes Volkswagen made promises this year to recognize the union as the only labor union representing the automaker's workers.

"In the initial conversations, the local union will remind (Volkswagen) human resources and the Chattanooga Executive Committee of the mutually agreed-upon commitments that were made by Volkswagen and the UAW last spring in Germany," Casteel said. "Among those commitments: Volkswagen will recognize the UAW as the representative of our members."

Bargaining power

Volkswagen said Monday the union's membership list was verified by an outside accounting firm. Volkswagen declined to disclose the exact percentage of employees who have joined the union.

The UAW said the list of workers submitted is a majority of Volkswagen's workforce, but the union has not been told the specific percentage certified by the auditor so it cannot reveal the final results. More details will be revealed during a conference call at 10 a.m. Tuesday.

If auditors have verified that the UAW represents more than 50% of Volkswagen's workers, the union could ask VW for recognition as the exclusive bargaining agent.

Whether or not the UAW has the exclusive bargaining power, under Volkswagen's new labor policy the UAW will be able to meet with the management team regularly.

Kristin Dziczek, director of the labor and policy group for the Center for Automotive Research, said the certification results provide proof that the union's strategy in the South is working.

In July, the UAW set up a new local chapter in Chattanooga as a way to let local employees take the lead at the plant. A similar local has opened in Tuscaloosa, Ala., where the UAW is trying to organize Mercedes-Benz workers.

"I think this is a template they are going to follow all across the South," Dziczek said.

Rival group

The membership certification also separates the UAW from a rival organization, the American Council of Employees, which vowed to represent Volkswagen workers in Chattanooga.

Last month, ACE said it planned to organize enough workers to represent those opposed to the UAW. But ACE has not yet applied to represent Volkswagen workers, the automaker said.

Sean Moss, an hourly Volkswagen employee and interim president of ACE, did not return several recent e-mails and phone calls.

Gary Chaison, professor of labor relations at Clark University, disagrees that the verification results represent a major victory for the UAW.

"I think what this all boils down to is the UAW is refusing to call a defeat a defeat. They attempted to organize a transplant and were unsuccessful," Chaison said in reference to an election that the UAW narrowly lost at the Chattanooga plant in February.

Chaison also said Volkswagen's labor policy could face legal challenges.

The National Right to Work Foundation has been closely monitoring the issue, said Anthony Riedel, spokesman for the organization.

"As concerned workers approach the foundation for legal aid, we will discuss with them their options if Volkswagen reneges on its agreement to respect the workers' vote — in this case, to remain free from unionization," Riedel said.

Survival at stake

The UAW has been trying to organize Volkswagen workers for at least three years and believes that organizing automotive assembly plants in the South is crucial to its survival.

Despite recent modest membership gains, the UAW represents fewer than 400,000 workers, down from 1.4 million in 1979. The union also has organizing campaigns with Mercedes-Benz in Tuscaloosa and Nissan in Canton, Miss., and Smyrna, Tenn.

When the UAW lost the Volkswagen election in February, its leaders said inappropriate interference by Tennessee Gov. Bill Haslam, Sen. Bob Corker and state legislators affected the outcome of the election. State legislators threatened to cancel incentives that were promised to Volkswagen if a majority of workers voted in favor of UAW representation.

In July, the union opened UAW Local 42 — its local chapter in Chattanooga — and invited Volkswagen workers to join the union even though a neutrality agreement barred the union from any organizing activity for a year. Volkswagen did not accuse the UAW of breaking the contract — a sign, critics say, that Volkswagen favors UAW representation.

Last month, Volkswagen unveiled a labor policy for the plant called Community Organization Engagement that allows any union that can prove it represents at least 15% of the carmaker's workers the ability to meet with management on a regular basis and represent workers.

The policy required the UAW to submit a list of workers to be audited and sets out three levels of representation:

At 15%, unions can use the company's meeting rooms, post literature and meet monthly with Volkswagen management.

At 30%, unions can also meet quarterly with a member of the Volkswagen Chattanooga executive committee.

At 45%, a union can also meet every other week with Volkswagen's management and executive committee.

Contact Brent Snavely: 313-222-6512 or bsnavely@freepress.com. Follow him on Twitter @BrentSnavely.