UAW Looks for Plan B After Failing Vote at VW Plant

The United Auto Workers union vows not to give up after workers at Volkswagen AG's 3-year-old factory in Chattanooga, Tenn., voted down UAW representation 712 to 626 late Friday. But the union concedes it may need to change tactics.

The UAW had been counting on a victory at VW to build momentum that would help it organize other foreign-owned auto plants in the U.S.

The union praised VW's management for remaining neutral during the organizing effort and last week's three-day balloting process. It also condemned the virulent wave of anti-union pressure led by Tennessee's Gov. Bill Haslam and Sen. Bob Corker last week. The UAW claimed the campaign interfered with worker rights to decide for themselves whether to choose union representation.

VW wants to set up a works council at the factory similar to ones it has in Germany. Such groups consist of elected hourly and salaried representatives who make decisions about work conditions and rules. American labor law requires workers to be represented by a union before that is allowed. VW says it will consult with labor experts about how to reach its goal.

Both sides claimed that a victory by the other would threaten the economic future of the plant. The Chattanooga plant currently makes the Passat midsize sedan. It's being considered to add a three-row SUV/crossover based on the CrossBlue concept VW unveiled in Detroit last year.

Corker claimed last week that if workers rejected the UAW, the carmaker would choose Chattanooga rather than its nonunion plant in Puebla, Mexico, to build the new model. VW said there is no connection between the vote and its production decision.