The United Auto Workers dropped its challenge to a February vote in which Volkswagen AG workers in Tennessee rejected representation, dashing one of labor’s best shots at organizing a foreign-owned car plant in the U.S.
Ford Motor Co. will pay most of its United Auto Workers-represented employees a $6,000 signing bonus, $3,752 in profit sharing and a $250 “competitive bonus” this year under a new four-year tentative agreement, the union said in summaries today.
Opponents including a Tennessee U.S. senator are warning employees that voting for the United Auto Workers at a Volkswagen AG assembly plant in Chattanooga would bring the kind of economic malaise that crippled Detroit.
The United Auto Workers lost its bid to organize workers at a Volkswagen AG factory in Tennessee, a setback in its effort to gain a foothold in the U.S. South and a victory for Republicans who urged voting against the union.
The United Auto Workers could be forced to reconsider its efforts to organize at foreign-owned factories in the U.S., a labor expert said, as the union vowed to keep fighting after losing a closely watched vote at Volkswagen AG’s Tennessee plant.