October 7, 2013 / 5:40 PM / 6 years ago

VW labor chief backs UAW union bid for U.S. works council

BERLIN (Reuters) - Volkswagen’s (VOWG_p.DE) top labor leader lent weight on Monday to efforts by U.S. union UAW to represent workers at the German company’s U.S. plant, an issue that has raised hackles among some U.S. politicians and other critics of UAW.

Volkswagen wants German-style labor representation at the plant through a works council and has held talks with the UAW about how the union can be involved in setting one up.

Currently the workers at VW’s plant producing the Passat car in Chattanooga, Tennessee, are not represented by a union.

But the UAW is keen to boost its membership, which has shrunk to about a quarter of the 1.5 million workers it had in 1979, and get a toehold that could allow it to expand among all foreign-owned auto companies.

However, Tennessee Republican Bob Corker was quoted by German newspaper Handelsblatt on Monday as saying it would be one of VW’s “biggest mistakes” to allow the UAW to organize workers in Chattanooga.

But Bernd Osterloh, head of VW’s global works council, said in a statement that forming a council was important if the plant wanted to produce other VW cars and he would keep talking with the UAW.

VW is looking at the idea of building a seven-passenger crossover utility vehicle at Chattanooga rather than at its plant in Puebla, Mexico, where it already assembles the Jetta compact car and the New Beetle, a U.S. executive of VW said last month.

“We know how important that (second) vehicle is for Chattanooga,” said Osterloh, who as deputy chairman of VW has a say on production decisions.

“In the interests of our U.S. colleagues, we’re open to such an allocation (of an order).” Osterloh, also a member of the IG Metall engineering union, said the UAW was prepared to cede some of its rights to a works council.

Osterloh said he wanted to involve Republicans and Democrats in negotiations about a works council plan once the legal issues are clarified but said the VW principle of involving staff and management in running plants, called co-determination, was not negotiable.

He said he plans to meet politicians and other supporters and opponents of the UAW in the United States in the next few weeks.

The UAW would like VW voluntarily to recognize the U.S. union as the best choice to represent workers in Tennessee.

Some 88 of VW’s 104 plants worldwide have works councils but U.S. labor laws require any such council to be recognized through a U.S. trade union. Tennessee’s governor Bill Haslam and Senator Bob Corker are both opposed to the UAW.

A UAW success at Chattanooga could alter the industrial relations landscape for foreign carmakers in the United States, opening the door to similar efforts at plants owned by Germany’s Mercedes in Alabama and BMW (BMWG.DE) in South Carolina, and possibly those owned by Japanese and South Korean automakers, analysts have said.

Corker has come out against any UAW influence over car plants in the South because he blames the union in part for the demise of Detroit as the heart of the U.S. industry.

Editing by Patrick Lannin and Greg Mahlich

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