NASHVILLE, Tenn. (AP/WMOT) — Tennessee has a dropped a spot in Chief Executive magazine's annual rating of the best and worst states for business, citing political interference with unionization efforts at the Volkswagen plant in Chattanooga.
Under the heading “Development Trend Indicator: Downward” the magazine notes "State politicians shouldn't have messed in Volkswagen's unionization business."
The state's ranking dropped from third to fourth.
However, magazine Executive Editor J.P. Donlon told WMOT News Tuesday that opposition led by Tennessee’s top Republican leaders to unionization at VW was not the reason for the drop in the ranking.
Donlon says Tennessee’s low tax rates, central location, and pro-business environment still make it one of the best places in the country to do business.
“Even states that have an overall strong record can make missteps from time to time. We just felt that that was just an indication that the action was something like…something un-Tennessee-like in its behavior.”
Opposition to the United Auto Workers' efforts to unionize the VW plant have been led by Republicans like U.S. Sen. Bob Corker and Gov. Bill Haslam.
Documents leaked last year revealed that the Haslam administration tried to make a $300 million incentive package for Volkswagen contingent on labor talks "being concluded to the satisfaction" of the state, though the governor declined to say which scenarios would have satisfied the state.