AP: Report: Tenn. offered contingent incentives to VW

[Omaha Steve]

http://www.businessweek.com/ap/2014-03-31/report-tenn-dot-offered-contingent-incentives-to-vw

March 31, 2014

NASHVILLE, Tenn. (AP) — Tennessee's incentive offer to Volkswagen was made contingent on the labor situation at the German automaker's plant in Chattanooga developing to the "satisfaction" of Republican Gov. Bill Haslam's administration, according to documents obtained by WTVF-TV in Nashville.

Haslam, who has been a vocal critic of the United Auto Workers' efforts to represent workers at Volkswagen's lone U.S. plant, has long denied suggestions that tax credits, grants and other incentives were tied to the union being rejected at the factory.

But an Aug. 23 summary of a nearly $300 million package, obtained by WTVF, carries a disclaimer toward the top of the page: "The incentives described below are subject to works council discussions between the State of Tennessee and VW being concluded to the satisfaction of the State of Tennessee."

Clint Brewer, a spokesman for the state Department of Economic and Community Development, told WTVF in an email that the incentive offer was based on "concerns we had at the time about process."

FULL story at link.