canada africa partner reservation UAW workers ratify U.S. labor agreement with Daimler Truck

UAW workers ratify U.S. labor agreement with Daimler Truck

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(Reuters) – Members of the United Auto Workers on Saturday ratified a new labor contract with Daimler Truck that includes an across-the-board pay increase of at least 25% over the four-year deal.

94.5% of votes were in favor of the new contract, which covers more than 7,300 hourly UAW workers, after a tentative agreement was reached in late April that averted an eleventh-hour strike.

The contract covers hourly workers at six plants in southern states where unionization is traditionally low, including four plants in North Carolina and parts warehouses in Georgia and Tennessee.

The deal with the German truck maker, which spun off from what is now automaker Mercedes, comes about two weeks before votes on whether to join the UAW will be counted at a Mercedes assembly plant in Alabama.

The deal also includes profit sharing and cost-of-living adjustments for workers at the maker of Freightliner and Western Star trucks and Thomas Built buses, as well as the end of wage levels that paid those who built buses less than those who built heavy trucks built.

UAW President Shawn Fain said the pay increase was consistent with what Detroit Three employees received during talks last fall.

Employees will receive an immediate 10% pay increase, followed by a 3% increase six months and 12 months later, Fain said.

The lowest-paid workers at Daimler’s Thomas Built bus unit will receive a raise of more than $8 an hour and some skilled workers there will receive more than $17 an hour, Fain said.

Since last fall’s deals with the Detroit Three, the UAW has focused its efforts on organizing non-union U.S. factories of more than a dozen automakers.

The UAW won a historic victory last month at a Volkswagen car plant in Chattanooga, Tennessee, and workers at a Mercedes car plant in Vance, Alabama, and a nearby battery plant in Woodstock will vote in the election on whether to unionize connect. week of May 13.