DETROIT, Michigan: Workers at Volkswagen's Chattanooga, Tennessee, plant have overwhelmingly approved their first contract with the United Auto Workers, delivering a major organizing victory for the union in the U.S. South.

Employees voted 96 percent in favor of the four-year agreement on February 19, marking one of the most significant achievements of UAW President Shawn Fain's tenure. The region has historically posed challenges for organized labor, and expanding union representation in the South has been a key priority for Fain since taking office in 2023.

The new contract provides workers with 20 percent wage increases over four years, along with improvements in healthcare coverage and job security.

"Volkswagen workers have moved yet another mountain," Fain said in a statement.

The agreement follows the UAW's high-profile 2023 negotiations with Ford Motor, General Motors, and Stellantis, which culminated in a six-week strike and secured a 25 percent wage increase and cost-of-living adjustments for workers at those automakers.

At Volkswagen, negotiations stretched roughly 18 months before the union and the company reached a tentative agreement earlier this month. The Chattanooga facility is the German automaker's only U.S. plant and produces the electric ID.4 SUV.

"This milestone reflects our shared commitment to competitive wages, strong benefits, and the long-term success of our employees and operations," Volkswagen said in a statement.

Workers at the plant voted 73 percent in favor of joining the UAW in April 2024, after the union had narrowly failed in organizing attempts at the same facility in 2014 and 2019.

Efforts to expand union representation in the South have faced setbacks, including a 2024 loss at a Mercedes plant in Alabama. Nonetheless, the Volkswagen ratification represents a notable step forward for the UAW's Southern strategy.