UAW to set up Chattanooga local

Leaders of the United Auto Workers say they plan to launch a local union for workers at Volkswagen's factory in Chattanooga, where it lost an organizing vote earlier this year. VW officials say there has been no formal agreement between the company and the union, which both have said they want to work more closely via a works council in Chattanooga.

From the Wall Street Journal's story on the UAW's plans:

The strategy raises questions about the long-term potential of a local union office that initially serves as a works council without bargaining rights. In theory, if that office grew large enough, management could recognize it as a bargaining unit for the purpose of contract negotiations, and any deal reached would apply to other workers, whether or not they were in the union.

Union officials have scheduled a news conference for 3 p.m. today.