UAW Workers Approve Labor Deal with Daimler Truck in the US
United Auto Workers (UAW) members have ratified a new labor contract with Daimler Truck, securing significant wage increases and other benefits for over 7,300 hourly workers. The agreement, reached after a tentative deal was struck in late April, received overwhelming support with a 94.5% approval rate, averting the possibility of a strike.
The four-year contract includes a substantial 25% general wage increase, marking a significant win for workers. It covers employees at six facilities in southern states, where unionization rates have historically been lower. These include four factories in North Carolina and parts warehouses in Georgia and Tennessee.
This deal with the German truck manufacturer, Daimler Truck, comes ahead of votes on UAW representation at a Mercedes assembly plant in Alabama. The agreement also entails profit-sharing, cost-of-living adjustments, and eliminating wage tiers that previously paid workers building buses less than those working on heavy trucks.
UAW President Shawn Fain emphasized that the wage hike matches the increases secured by workers at the Detroit Three automakers during negotiations last fall. Under the new contract, workers will receive an immediate 10% pay raise, followed by 3% increases at six-month intervals.
Notably, the agreement brings substantial raises for the lowest-paid workers at Daimler’s Thomas Built bus unit, with some skilled trades workers receiving significant hourly wage increases.
Following successful negotiations with significant automakers last fall, the UAW has shifted its focus to organizing efforts at non-union U.S. plants across various automakers. Recent victories include a historic win at a Volkswagen auto plant in Chattanooga, Tennessee, and upcoming votes at a Mercedes auto factory in Vance, Alabama, and a nearby battery plant in Woodstock.
Overall, the ratified contract with Daimler Truck represents a significant achievement for UAW members. It secures substantial wage increases and other benefits while strengthening the union’s presence in the automotive industry.
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