Haslam Says VW Incentive Offer Didn’t Hinge On Union Vote

Governor Haslam met with reporters on Wednesday the steps of capitol hill. File photo/WPLN

Gov. Bill Haslam says offering $300 million in incentives to Volkswagen to expand a plant in Chattanooga had nothing to do with a union vote. This comes after documents obtained by WTVF in Nashville suggest the state’s incentive package did hinge on the results.

The offer letter said the union vote had to work “to the satisfaction of the state of Tennessee.” The governor, speaking to reporters in front of the capitol, said that did not mean the money would be pulled if the plant successfully organized.

In February, the union vote failed by just 86 votes.

“If UAW had won, it’s not like we were going to discontinue discussions with them. It wasn’t a threat at all. It was just a statement of reality.”

Haslam said he was trying to tell VW that lawmakers would be less likely to support incentives in the event of unionization.

The state’s offer was pulled in January, but Haslam said talks with VW are still ongoing, and that the state is willing to do what it takes to attract an expansion.

Any incentive package would have to be approved by the General Assembly.

The National Labor Relations Board is expected to hear the union’s complaint that third-party groups and Republican politicians interfered in the election. The union is pushing for a re-vote.