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An upcoming policy change by Volkswagen would clear the way for the United Auto Workers to become the first union to bargain on behalf of employees at a foreign automaker in the South, the UAW said Monday.

Volkswagen and the union reached an agreement last spring, according to a letter to members of Local 42 in Chattanooga obtained by The Associated Press. The UAW said that it would cooperate with efforts to win production of a new SUV in Chattanooga, and that it would drop its National Labor Relations Board challenge of a February union vote.

In return, Volkswagen committed to recognizing the UAW, which would give it the authority to bargain on behalf of both members and non-members, according to the letter signed by Mike Cantrell and Steve Cochran, the president and vice president of Local 42. Tennessee’s right-to-work laws mean that no worker can be forced to join a union, though the UAW says more than half of eligible workers have signed up.

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