Workers at the Volkswagen plant in Chattanooga have taken steps that almost assure they will become part of the United Auto Workers (UAW). The move could not come at a worse time as the German car maker faces its largest challenge in decades due to an emission fraud scandal.
If the UAW victory, as expected, survives an appeal by Volkswagen to the National Labor Relations Board, the 164 skilled trades workers will be the first foreign-owned auto assembly plant workers to gain collective bargaining rights in the southern United States.
The milestone comes just days after VW announced that its sales in the United States collapsed last month. On Tuesday, the company said:
Volkswagen of America, Inc. (VWoA) today reported sales of 23,882 units delivered in November 2015.
The November sales results reflect the impact of the recent stop-sale for all 2.0L 4-cylinder TDI vehicles as well as for the 3.0L V6. The voluntary stop-sales were issued in light of notices received by the Environmental Protection Agency (EPA) and the California Air Resources Board (CARB) regarding emissions compliance.
VW sold 31,725 vehicles in November of last year. The figure puts its market share at 2% in the United States. By contrast, its share of the European Union market is 25%.
In theory, the UAW eventually will lead to collective bargaining, which could raise wages and benefits, which in turn would cut margins for the company in the United States. Based on the VW scandal, it might be better to predict that huge financial losses created by the debacle will be deepened by labor’s success.
VW’s problems in the United States may have only begun as it faces recalls and sales erosion. Viewed from that point, the UAW victory is minor.
Credit Card Companies Are Doing Something Nuts
Credit card companies are at war. The biggest issuers are handing out free rewards and benefits to win the best customers.
It’s possible to find cards paying unlimited 1.5%, 2%, and even more today. That’s free money for qualified borrowers, and the type of thing that would be crazy to pass up. Those rewards can add up to thousands of dollars every year in free money, and include other benefits as well.
We’ve assembled some of the best credit cards for users today. Don’t miss these offers because they won’t be this good forever.
Flywheel Publishing has partnered with CardRatings for our coverage of credit card products. Flywheel Publishing and CardRatings may receive a commission from card issuers.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.