On February 4, 2026, Volkswagen and the United Auto Workers (UAW) announced a tentative labor agreement, bringing substantial benefit improvements to approximately 4,000 employees at the Chattanooga, Tennessee plant. According to the agreement, workers' salaries will generally increase by 20%, accompanied by multiple welfare reforms. Upon the agreement taking effect, each employee will immediately receive an initial bonus of $6,550 and an additional annual bonus of $2,550 throughout the agreement's validity period. In terms of healthcare, the company will shoulder more costs, reducing out-of-pocket expenses and expanding coverage. The job security clause explicitly opposes unilateral layoffs, reduction of shifts, or business outsourcing, ensuring the Chattanooga plant maintains its current unionized workforce size. The agreement has now entered the stage of worker voting, and if approved, will be formally implemented in 2026.