Union withdraws Volkswagen vote appeal

CHATTANOOGA — In a stunning reversal, the UAW withdrew an appeal of the February union vote at the Volkswagen plant just hours before a federal hearing on the vote was scheduled to start Monday.

Instead, the union called on Tennessee Gov. Bill Haslam to re-confirm the state's offer of $300 million in incentives to Volkswagen to try and bring production of the company's new crossover sport utility vehicle here. A decision to expand at the plant likely would mean hundreds of millions in new investment and hundreds of new jobs.

"The UAW wants to help create quality jobs and build world-class products for American consumers," Casteel said in a statement. "With this in mind, we urge Governor Haslam to immediately extend the incentives that previously were offered to Volkswagen for this new SUV line, and do so unconditionally."

But United Auto Workers' officials were also sharply critical of Haslam and Tennessee Sen. Bob Corker, both Republicans, who they said tainted the voting process with public comments and then refused to make an appearance at this week's National Labor Relations Board hearing despite receiving subpoenas from the UAW.

"The unprecedented political interference by Governor Haslam, Senator Corker and others was a distraction for Volkswagen employees and a detour from achieving Tennessee's economic priorities," UAW President Bob King said in a statement. "The UAW is ready to put February's tainted election in the rearview mirror and instead focus on advocating for new jobs and economic investment in Chattanooga."

The decision was made in the best interests of Volkswagen employees, the automaker and economic development in Chattanooga, King said.

The union based its decision on the belief that the NLRB process potentially could drag on for months or even years, King said. Additionally, the UAW cited the Haslam's and Corker's refusal to participate in a transparent legal discovery process.

The UAW has accomplished a major goal with its election objections, King said.

"The UAW's objections informed the public about the unprecedented interference by anti-labor politicians and third parties who want to prevent workers from exercising their democratic right to choose union representation," he said.

Outdated federal laws governing the NLRB never contemplated the level of extreme intimidation and interference that occurred in Chattanooga, King said. Even if the government ordered a new election — the board's only available remedy under current law — nothing would stop politicians and anti-union organizations from interfering again.

UAW officials said they believe that a congressional inquiry into the Haslam administration's incentives threat to Volkswagen provides the best opportunity for additional scrutiny. The union will ask Congress to examine the use of federal money in the state's incentives threat.

"Frankly, Congress is a more effective venue for publicly examining the now well-documented threat," King said. "We commend Congressmen George Miller (D-Calif.) and John Tierney (D-Mass.) for their leadership on this matter and look forward to seeing the results of their inquiry."