Tennessee lawmakers look like they’re going to sign off on $180 million to subsidize Volkswagen’s expansion in Chattanooga. While they’re willing to write they check, they’re still taking shots at the automaker for its welcoming attitude toward unions.
The Senate Commerce and Labor Committee summoned Volkswagen executives to the capitol Tuesday, basically for a lecture. They suggested the company “intentionally” lured the United Auto Workers to Tennessee and asked whether the company has a partnership with the UAW.
“The commitment that we have is to leave the decision of union representation up to our employees,” VW general counsel David Geanacopoulos said.
The plant narrowly rejected the UAW last year but the company has since allowed the union and another group to represent workers on a limited basis.
The plant falls in the district of Sen. Bo Watson (R-Hixon), who publicly campaigned against the UAW. He said Volkswagen has been “transformative” for Tennessee but he wants legislators to consider the expansion money with the assumption that the plant will be unionized.
“The opportunity is vast. No question about that,” he said. “But in six months or a year or two years from now, no one on this committee should be surprised if something happens. No one.”
Other Republicans echoed Watson’s sentiment. But no one voted against the incentive package, which in terms of cash, rivals the amount Tennessee offered Volkswagen to come in 2008. Combined with state tax credits and local incentives, VW has already received $577 million in subsidies for the Chattanooga plant.
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