Tennessee legislators threaten to kill tax incentives if UAW wins VW vote

In the final stretch ahead of the UAW’s vote at Volkswagen’s Chattanooga facility, Tennessee legislators have threatened to kill the company’s tax incentives if the plant becomes unionized.

“Should the workers at Volkswagen choose to be represented by the United Auto Workers, then I believe any additional incentives from the citizens of the State of Tennessee for expansion or otherwise will have a very tough time passing the Tennessee Senate,” said State Senator Bo Watson, in a statement published by the The Chattanoogan.

The Republican legislators and anti-union groups contend that VW is secretly colluding with the UAW to unionize the plant. The company has officially maintained a neutral position, however, acknowledging a role for unions but declining to voluntarily accept UAW representation without an employee vote.

“I do not see the members of the Senate having a positive view of Volkswagen because of the manner in which this campaign has been conducted,” Watson added.

VW and the UAW have established a legal agreement outlining the election process and following steps. If the workers vote to unionize, VW has outlined details of a German-style works council that will serve many of the same functions as a traditional union.

“Our works councils are key to our success and productivity,” said Frank Fischer, chairman and CEO of Volkswagen Chattanooga, in a statement published by the Detroit Free Press. “It is a model that helped make Volkswagen the second largest car company in the world.”