The United Auto Workers union plans to establish a local union to represent workers at the Volkswagen AG plant in Chattanooga, Tenn., and attempt to work with the German auto maker just months after a vote by workers to establish a union failed, according to press reports.

Union membership would be voluntary, but the local outpost would work with management to establish a “works council” to set up work rules at the plant similar to other VW plants around the world, according to a report in the Nashville…