On Friday, April 26, the United Auto Workers (UAW) representing over 7,300 hourly workers in six factories in the southern United States reached a preliminary agreement with their employers, avoiding a strike at the last minute. The new labor agreement includes a 25% pay raise over four years.
UAW President Shawn Fain took to YouTube from Charlotte, North Carolina late Friday night to express, “For months, we’ve been saying that record profits should mean a record contract with no concessions.”
“Our determination and unity have paid off,” he stated regarding the preliminary agreement, emphasizing that the agreement still needs approval from the workers.
Daimler Truck, the manufacturer of Freightliner and Western Star trucks as well as Thomas Built buses, had its workers planning to strike starting midnight on Friday on the East Coast. In a statement, Daimler Truck mentioned that UAW members are currently voting on the new contract and they hope to finalize it soon to serve the common interests of all parties.
Fain explained that due to Daimler Truck’s delayed concessions, his speech on Friday was nearly an hour late from the scheduled time. Last fall, during negotiations between UAW and Detroit’s three major automakers – General Motors, Ford, and Stellantis, agreements were reached at the last minute, averting a larger strike.
According to the agreement reached on Friday, Daimler Truck workers will see a minimum 25% wage increase over the course of the four-year contract, bringing their pay levels in line with workers at the big three automakers in Detroit.
Upon approval of the agreement, Daimler Truck employees will receive an immediate 10% pay raise, with additional 3% increases at 6 and 12 months. They will also benefit from cost-of-living adjustments and profit-sharing, both of which are new to Daimler Truck workers.
Furthermore, the agreement will end the historical wage discrepancy between public bus manufacturing workers and heavy truck manufacturing workers.
Fain also stated that the minimum hourly wage increase for Thomas Built bus workers will exceed $8, while some skilled workers will see hourly wage hikes of over $17. The agreement also includes enhanced job security and improvements in health and safety benefits.
In March of this year, about 96% of workers at four Daimler Truck factories in North Carolina, as well as some warehouses in Georgia and Tennessee, voted in favor of a strike.
The union has also lodged complaints with the National Labor Relations Board against Daimler Truck for unfair labor practices, citing violations of worker rights, federal labor laws, and lack of good faith bargaining.
Since reaching agreements with the Big Three automakers in Detroit last fall, the UAW has shifted its focus to negotiating labor agreements at over a dozen non-union automotive factories in the United States.
Last week, UAW secured a historic victory at the Volkswagen plant in Chattanooga, Tennessee, while workers at the Mercedes (also known as Benz) plant in Vance, Alabama, will vote this week on whether to join the union.
(Reference from Reuters)