The southern United States has long been a popular location for foreign automakers to build plants due to tax breaks and cheaper, non-union labor. However, the United Auto Workers (UAW) recently achieved a significant victory by winning a union vote at Volkswagen’s plant in Chattanooga, Tennessee. This win may mark a turning point in the traditionally low-unionized South, with potential implications for other industries and further unionization efforts at foreign auto plants in the region.
Despite the historic victory at Volkswagen, the UAW faces challenges in organizing other car manufacturers in the South, including Mercedes, BMW, Honda, and Hyundai. The UAW’s success at Volkswagen could provide momentum for future union drives, but the region’s anti-union sentiment and political backlash pose significant obstacles. South Carolina and Alabama, in particular, have expressed strong opposition to unions, viewing them as a threat to the region’s economic success and political economy.
The auto industry has shifted from the North to the South in recent decades, with foreign automakers establishing plants in states like Tennessee, South Carolina, and Alabama. The region’s share of auto jobs has increased significantly, and with the rise of electric vehicles, the trend is expected to accelerate. Southern states, led by Republicans, have attracted investments in nonunion electric vehicle manufacturing, further solidifying the region’s dominance in the auto industry.
One major barrier to unionization efforts in the South is the presence of “right-to-work” laws in every state, allowing workers to opt out of paying union fees even if they benefit from union agreements. Political leaders have used tax incentives and subsidies to attract auto investments while keeping out unions. The close ties between unions and the Democratic party in the South have also hindered organizing efforts, with some workers disliking unions due to their association with the party.
In the aftermath of the UAW’s victory at Volkswagen, labor advocates anticipate that other states may pass measures to deter union efforts. However, there is optimism that the success in Chattanooga could inspire workers in other industries to seek union representation. Efforts to revitalize labor in the South are underway, with calls for unions to invest in organizing southern industries. Despite challenges, the UAW’s win at Volkswagen signals a potential shift in the labor landscape of the South and a renewed focus on workers’ rights.
