Volkswagen said Wednesday it is offering its newly unionized workers at its Tennessee assembly plant a 14% wage increase over four years and profit sharing.

Earlier this year, workers at Volkswagen’s factory in Chattanooga, Tennessee, voted in favor of joining the United Auto Workers (UAW) union and now, the German marque is offering them a 14% pay rise over four years.

Volkswagen is struggling to satisfy workers on both sides of the Atalntic Ocean amid need for aggressive cost cuts.

Volkswagen and labour representatives will hold a fourth round of talks over wage cuts and possible plant closures, in what has become an increasingly bitter standoff that will be flanked by strikes at the carmaker's main German sites on Monday.

Volkswagen's wage increase proposal faces union criticism amid historic unionization at its Tennessee plant, highlighting labor tensions.