After tense negotiations, the United Auto Workers union has successfully reached a last-minute tentative agreement with Daimler Truck, the truck and bus manufacturer, avoiding a potential strike that could have affected over 7,000 workers.
The union and the German company sealed a four-year deal on Friday evening, just in the nick of time before the expiration of the previous contract, which had been in effect for six years. The agreement encompasses employees at multiple facilities in North Carolina, where Daimler produces Thomas Built Buses, Freightliner, and Western Star trucks, as well as distribution centers in Atlanta and Memphis, Tennessee.
During an online address, UAW President Shawn Fain revealed that the new contract incorporates wage hikes exceeding 25% over the next four years, with a 10% increase following the contract's ratification. Fain also highlighted the elimination of wage tiers within the company, along with provisions for cost-of-living adjustments and the introduction of "profit sharing for the first time in Daimler history."
"As the deadline approached, the company finally came to the table," Fain remarked. "Tonight, we commemorate this achievement."
The agreement is pending approval from union members.
"Following negotiations, the UAW members at these facilities will now have the opportunity to vote on the proposed contracts. We are optimistic about finalizing the agreements soon, as they will be beneficial for all parties involved," stated Daimler. The heavy-duty manufacturer was previously part of the same company as Mercedes-Benz before the separation in 2021.
The agreement with Daimler comes at a time when the UAW is actively working to unionize auto assembly plants in the southern region, following successful contract negotiations with Detroit's automakers. Just last week, 73% of workers at a Volkswagen AG plant in Chattanooga, Tennessee, voted to join the UAW. This marked the first unionization at a southern assembly plant owned by a foreign car manufacturer.
Employees at Mercedes facilities in Tuscaloosa, Alabama are scheduled to vote on UAW representation in May. Nevertheless, the UAW's organizing efforts have faced resistance from Republican governors and business leaders in the Southern states.
