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UAW: ‘Consensus’ reached with Volkswagen on union

By WTOP Staff

ERIK SCHELZIG
Associated Press

NASHVILLE, Tenn. (AP) — United Auto Workers leaders said Thursday they have reached a “consensus” with Volkswagen and expect the German automaker to recognize the union if they sign up enough workers at a new local for the company’s assembly plant in Tennessee.

The union in February suffered a bitter setback in its effort to organize its first foreign-owned plant in the South when workers at the Chattanooga plant rejected UAW representation by a 712-626 vote.

Gary Casteel, the UAW’s secretary-treasurer, said the creation of Local 42 will avoid the need for another election that could involve the sort of “third-party interference” the union blames for losing the earlier vote. He stressed that no employee will be required to join, and that no dues would be collected until after a collective bargaining agreement is reached.

“We have a consensus,” Casteel said. “This is not something the UAW is doing unilaterally, it’s been thoroughly discussed with VW over an extended period of time.”

Casteel said the union is confident Volkswagen will recognize the union if the local signs up a “meaningful portion” of Volkswagen’s work force in Chattanooga, though he did not elaborate on what the threshold would be.

Volkswagen wants to introduce a German-style works council at the plant to represent both salaried and blue-collar workers, but the company’s has said it can’t do so without the involvement of an independent union.

Volkswagen spokesman Scott Wilson issued a statement saying that the company has “no contract or other formal agreement with UAW on this matter.”

“Just like anywhere else in the world, the establishment of a local organization is a matter for the trade union concerned,” according to the company.

Republican Gov. Bill Haslam and his staff understand “that there is no agreement between the company and the UAW,” Haslam spokesman David Smith said in an email.

The union said before the vote that it had signed up a majority of plant workers, but nevertheless lost the contentious election following public statements from GOP politicians warning that a UAW win could imperil economic incentives for the plant’s expansion.

The union filed — but later abandoned — a challenge of the outcome with the National Labor Relations Board.

The turmoil surrounding the labor vote has delayed a Volkswagen decision on whether to build a new midsized SUV in Chattanooga or in Mexico. The new model is seen as key to reviving flagging VW sales in North America.

It’s unclear whether Thursday’s UAW announcement could affect renewed efforts to negotiate expansion incentives at the plant. The money would have to be approved by the Republican-controlled state Legislature, which is heavily anti-union.

The Beacon Center of Tennessee, a conservative think tank, criticized the UAW announcement and said it will call on state lawmakers to reject incentives for VW.

“VW ignored workers’ decision to reject the union, inviting the UAW in anyway,” Beacon CEO Justin Owen said. “It doesn’t deserve a penny of our money.”

Documents leaked after the union vote revealed that Tennessee had sought to tie a $300 million incentive offer for expanding the plant to what it deemed a “satisfactory” outcome of the labor situation there.

U.S. Sen. Bob Corker, R-Tenn., and a former Chattanooga mayor, was particularly vocal during the union vote, predicting the company would announce an expansion within two weeks of workers rejecting the union. The senator later blamed the UAW appeal — and the resulting delay in certifying the results of the union election — for putting a hold on expansion talks at the plant.

The Chattanooga plant has been seen as the union’s best chance to win in the South because other automakers have not been as welcoming to organized labor as with Volkswagen. Labor interests make up half of the supervisory board at VW in Germany, and they have questioned why the Chattanooga plant is the company’s only major factory worldwide without formal worker representation.

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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