NASHVILLE, Tennessee (AP) -- Volkswagen, the world's third-largest automaker, is shocking Southern union foes by engaging in talks with the United Auto Workers about creating a German-style "works council" at its Chattanooga, Tennessee, plant.
A top Volkswagen labor official said Thursday that a pending decision about union representation for workers at the automaker's lone U.S. plant will have no bearing on whether the company will decide to add the production of another SUV vehicle there or make it in Mexico.
Southern politicians say they fear a successful UAW organization of the Volkswagen plant would hurt the region's ability to attract future investment and that it could lead to the spread of organized labor to other foreign car makers.
But labor leaders like Bernd Osterloh, head of the Volkswagen's global works councils and a member of the company's supervisory board, stress that the Chattanooga plant is the only major Volkswagen facility around the globe that does not have formal worker representation.
Osterloh visited the plant Thursday and later met with Republican Gov. Bill Haslam in Nashville. In his only U.S. interview, Osterloh told The Associated Press that while the company's dedication to "co-determination" supports the creation of works councils at all its plants, market forces will decide whether the Chattanooga plant is expanded.
"Those two things have nothing to do with each other," Osterloh said during the interview, which was conducted in German. "The decision about a vehicle will always be made along economic and employment policy lines. It has absolutely nothing to do with the whole topic about whether there is a union there or not."
Labor representatives, who make up half of the Wolfsburg, Germany-based automaker's supervisory board, have pressured VW management to enter discussions about union representation at the Chattanooga plant because U.S. law requires that any works council be created through an established union.
In Germany, wages are bargained through the union, while works councils negotiate plant-specific matters such as job security and working conditions for all employees.
"It's important to note that the issue for us is works councils, not unions," Osterloh said. "And your law says if I want to transfer authority to a works council, I need to work with a union."
The UAW has said it has collected signatures from a majority of workers at the plant, meaning Volkswagen could recognize the union without a formal vote.
Opponents of the UAW, including Haslam and U.S. Sen. Bob Corker, R-Tenn., have called for a secret ballot.
Osterloh said he takes no position on whether the company should automatically recognize the union, and that it's up to management to decide whether to require a vote.
"Volkswagen is led by its board, and not by politicians," he said. "The board will certainly make the right decision."
Corker, a former Chattanooga mayor, has been among the most vocal critics of unionization efforts at the plant. He has urged Volkswagen to abandon talks with the UAW, suggesting the company would become a "laughingstock" if it welcomed the union into the plant.
Osterloh shrugged off Corker's comments, and stressed that it's up to the workers at the plant to decide whether to be organized and by whom.
"Volkswagen considers its corporate culture of works councils a competitive advantage," he said.