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UAW-VW Talks in Tennessee May Be Heating Up

Senior executives at Volkswagen AG met late last week with United Auto Workers President Bob King about unionizing the company's assembly plant in Chattanooga, Tenn., Handelsblatt reports.

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Senior executives at Volkswagen AG met late last week with United Auto Workers President Bob King about unionizing the company's assembly plant in Chattanooga, Tenn., Handelsblatt reports.

The Dusseldorf-based business daily cites unidentified sources who say the talks at the company's headquarters in Wolfsburg, Germany, included VW human resources chief Horst Neumann and works council Chairman Bernd Osterloh.

Neumann said in March that the company was considering setting up a German-style works council at the Tennessee facility, which is VW's only nonunion factory. If its supervisory board approved the plan, the company could begin labor negotiations this year, according to Neumann. He noted that the UAW would be the "natural partner."

King has embraced the proposal for a works council, which is a less adversarial system than the traditional U.S. labor model. German workers elect their own works council at the plant level to make decisions about benefits, hours and working conditions. A national union negotiates with employers to set wages the role the UAW is seeking.

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