In a significant development, the United Automobile Workers (UAW) and Daimler Truck have reached a historic tentative agreement, averting a potential strike at six facilities in the US South. The deal covers over 7,300 hourly workers and includes substantial economic gains for all involved.
The four-year contract delivers major improvements for the workforce. UAW members will receive raises of more than 25% over the term of the agreement, with an immediate 10% increase followed by further raises of 3% six months and twelve months later. Additionally, cost-of-living adjustments and profit-sharing have been introduced for the first time at Daimler Truck.
The lowest paid workers at Thomas Built will see raises of over $8 an hour, while some skilled trades workers will receive increases of over $17 an hour. The agreement also includes increased job security and improved health and safety benefits.
UAW President Shawn Fain announced the deal's details in a statement to members, reflecting on the historic nature of the fight for justice at Daimler Truck. He emphasized that record profits should mean record contracts for workers.
The UAW had been in negotiations with Daimler Truck for months and had threatened a strike if an agreement was not reached by the contract's expiration on April 26, 2024. The union represents hourly workers at six facilities in the US South, including Charlotte, North Carolina (Mercedes-Benz truck plant), Freightliner and Western Star trucks, Thomas Built buses, and Daimler Truck AG.
The deal comes just weeks before votes on whether to join the UAW will be tallied at a Mercedes factory in Alabama. The union has been successful in organizing non-union US plants of various automakers following the historic victory at Volkswagen's plant in Chattanooga, Tennessee, last week.
