Daimler Truck and United Auto Workers Reach Agreement, Resolving Impending US Strike

Daimler Truck and United Auto Workers (UAW) have reached an agreement, avoiding an impending strike that could have disrupted operations at six facilities in the U.S. South. The agreement was made just hours before the strike deadline, bringing relief to over 7,300 hourly workers represented by the UAW.

UAW President Shawn Fain expressed satisfaction with the tentative deal, stating that their determination and solidarity had paid off. However, the agreement still needs to be ratified by the workers. Daimler Truck, the manufacturer of Freightliner and Western Star trucks and Thomas Built buses, stated that they hope to finalize the contracts soon for the mutual benefit of all parties involved.

The negotiation process faced several delays as Daimler Truck made last-minute concessions, causing Fain’s speech to start almost an hour later than scheduled. This tactic is not new, as during talks with other automakers in the past, the threat of a strike deadline has led companies to make concessions to avoid further disruptions.

Under the terms of the agreement, Daimler Truck workers will receive a minimum 25 percent general wage increase over the course of the four-year contract. This matches the wage increase received by workers at the Detroit Three automakers – General Motors, Ford, and Stellantis. Once ratified, UAW members will receive an immediate 10 percent pay raise, followed by 3 percent increases after six months and twelve months.

The agreement also includes cost-of-living adjustments to offset inflation and profit-sharing, both of which are being introduced for the first time at Daimler Truck. Additionally, the deal puts an end to wage tiers that paid bus builders less than those building heavy trucks. This means that workers at Thomas Built will see significant pay raises, with the lowest-paid workers receiving increases of more than $8 an hour and some skilled trades workers seeing increases of more than $17 an hour.

Apart from wage increases, the agreement also addresses job security and improves health and safety benefits for workers. Overall, the deal represents a significant victory for the UAW and its members.

Prior to this agreement, approximately 96 percent of Daimler Truck workers at four factories in North Carolina, as well as parts warehouses in Georgia and Tennessee, had voted in March to authorize a strike. The UAW had also filed unfair labor practice charges against the company, accusing them of violating workers’ rights and federal labor laws, as well as failing to bargain in good faith.

While this agreement is a major success for the UAW, the union’s efforts to organize non-union U.S. plants of more than a dozen automakers are ongoing. In recent weeks, the UAW secured a historic victory at a Volkswagen plant in Chattanooga, Tennessee. Workers at a Mercedes factory in Vance, Alabama, will also vote on whether to join the union during the week of May 13.

In conclusion, the agreement between Daimler Truck and the UAW has successfully resolved the impending strike, ensuring that operations will continue without disruption. The deal includes significant wage increases, improved benefits, and job security for workers. The UAW’s victory at Daimler Truck adds to their recent successes in organizing non-union plants, solidifying their position as a powerful force in the automotive industry.