1. What objectives were Volkswagen managers trying to meet in allowing the UAW to organize its workforce in Chattanooga?
2. Assuming that Local 42 succeeds in signing up workers, do you expect that VW's management will need to prepare for problems in collective bargaining with the union? Why or why not?
Answer above questions after reading the case study.
Volkswagen wants the United Auto Workers the United Auto Workers' failure in organizing the workers of Volkswagen's Chattanooga, Tennessee, plant was surprising because the election campaign had been so unusual. It is typical for management to discourage a union, but Volkswagen seemed to welcome the UAW to the plant, where 2,400 workers assemble Pass at sedans. The union had partnered with the IG Metal union in Germany, where VW is headquartered and where union membership is an accepted part of business. There, VW and IG Metal had a cooperative relationship in which the workers served on a works council, a formal committee that negotiates with management about how to handle production issues. VW has similar arrangements in its other international facilities and hoped to set up a works council in Chattanooga. Management believed this would require that workers first belong to a union. In an unusual move, the company allowed UAW organizers to campaign inside the factory. Page 491 In spite of this favorable context, the workers voted 712 to 626 against the union in February 2014. While some workers were attracted to the idea of a works council, others worried that the UAW's presence would create conflict and divisions. Some said they disliked the union's support for political candidates whose views they disagreed with. The UAW's initial response was to appeal the vote to the National Labor Relations Board, citing interference from outsiders. The governor had said he doubted the state would go ahead with plans to offer VW incentives for locating in Chattanooga if the plant became unionized. Senator Bob Corker had said he had information that VW would not build a second production line in Chattanooga if the union vote passed. Conservative political groups posted anti-union billboards around Chattanooga. Believing these actions made the vote unfair; the union asked the NLRB to order a new election. But in another surprise, the UAW dropped the appeal two months later. The union's president at that time, Bob King, said he feared the appeal process "could drag on for months or even years." Ordering a new election could take two years, whereas accepting the election's results would allow the union to campaign again in another year. More surprises followed in July. The UAW announced that it had reached a consensus with Volkswagen. The company invited UAW Local 42 to sign up workers voluntarily, and the union would partner with management to set up a works council. Local 42 would prioritize ensuring the company's growth and developing a training program for employees. That same month, VW announced that it would expand the Chattanooga plant to build midsized SUVs, adding about 2,000 new jobs.