Auto Workers Union and Daimler Truck reach agreement to avoid strike

The United Auto Workers union has successfully reached a last-minute tentative agreement with Daimler Truck, avoiding a potential strike involving more than 7,000 workers. The four-year agreement was struck with the German company just before the expiration of the previous contract, which was put into effect six years ago. This deal covers workers at various plants in North Carolina, where Daimler manufactures Thomas Built Buses, Freightliner, and Western Star trucks, in addition to distribution centers in Atlanta and Memphis, Tennessee.

According to UAW President Shawn Fain, the new contract includes wage increases of over 25% in the next four years, with a 10% raise to be implemented once the deal is ratified. The agreement also eliminates wage tiers at the company, introduces cost-of-living adjustments, and includes profit-sharing for the first time in Daimler’s history.

While the union members still need to approve the agreement, Daimler expressed hope for a swift finalization for the benefit of all parties involved. This successful negotiation comes amidst the UAW’s broader campaign to organize southern auto assembly plants following recent lucrative contracts in a stand-off with Detroit’s automakers.

It is worth mentioning that last week, the UAW secured majority support from workers at a Volkswagen AG plant in Chattanooga, Tennessee, marking the union’s first achievement in a southern assembly plant owned by a foreign automaker. Furthermore, workers at Mercedes factories in Tuscaloosa, Alabama, are scheduled to vote on UAW representation in May. However, the UAW’s efforts have faced opposition from Republican governors and business leaders in the southern region.

In conclusion, the agreement between the United Auto Workers and Daimler Truck underscores the importance of effective negotiations and collaboration between labor unions and companies to ensure the well-being and satisfaction of workers.

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