Volkswagen’s Subpar US Healthcare Forces Workers Into Debt, Survey Reveals

TL/DR –

A survey of nearly 1,800 Volkswagen (VW) workers in Chattanooga, Tennessee by the United Auto Workers (UAW) has shown that the automaker’s US healthcare offerings are causing financial hardship. Around 73% of VW Chattanooga workers have had to choose between paying for medical care and other essential expenses, or have had to borrow money or declare bankruptcy to cover medical costs. Despite VW’s $20.6bn profit in 2024, the healthcare and workplace safety standards for its US workforce are lower than those in other countries, with over one in ten workers opting out of the company’s costly and inadequate health plan.

Volkswagen Workers Report Financial Strain from Substandard US Health Care

Just days after Volkswagen, the world’s second-largest automaker, reported a massive $20.6 billion profit for 2024, a new UAW survey sheds light on the financial strain caused by poor health care benefits for VW workers in Chattanooga, Tennessee.

The comprehensive UAW survey of nearly 1,800 Chattanooga-based Volkswagen employees reveals an alarming picture of a workforce grappling with inferior health care benefits and soaring out-of-pocket expenses. The subpar offerings are leading to financial hardship, debt, and at times, skipping necessary medical treatment.

Shockingly, three out of four Volkswagen Chattanooga employees reported choosing between medical care and essential expenses like rent and food or resorting to borrowing money or declaring bankruptcy to cover medical bills. This figure rises to four out of five parents and caregivers with children on a VW health insurance plan.

The full survey report paints a dismal picture of the impact of Volkswagen’s substandard health care plans, with key findings revealing:

• 67% of employees were forced to choose between paying for medical care and basic necessities.
• 58% borrowed money or declared bankruptcy due to medical expenses.
• 57% have outstanding medical debt, including accounts in collections and wage garnishments.
• 18% rely on Tennessee’s publicly-funded Medicaid program, TennCare, to insure their children, thus passing the responsibility to taxpayers.
• 29% faced financial hardship specifically due to medical bills from a workplace injury.
• 20% took on a second job just to cover their medical bills.

Along with the survey, hundreds of VW workers shared personal stories of skipping urgently needed medical care and experiencing extreme financial stress due to the company’s poor health care standards.

“Volkswagen should be ashamed that the U.S. workers who have helped build their massive profits are being forced to choose between putting food on the table and having health insurance,” said UAW President Shawn Fain, calling out Volkswagen’s failure to meet union auto standards in America and violation of U.S. labor laws.

Interestingly, Volkswagen’s U.S. workforce experiences lower health care and workplace safety standards compared to their counterparts in other countries. Some employees even opt out of VW’s costly and inadequate health plan entirely. Despite Volkswagen’s substantial profits, the company lags behind its competitors in providing quality health care.

“Volkswagen workers should not have to start a GoFundMe to pay their medical bills,” said Amanda Muellemann, an assembly worker who couldn’t afford a necessary surgery.

While Volkswagen reported $20.6 billion in profits in 2024, bringing their four-year profit total to $92.4 billion — a 38% increase, the 4,000 Chattanooga-based workers are still awaiting a fair contract that brings them up to par with industry standards.

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