Daimler Truck, United Auto Workers reach agreement, avoiding potential strike

Daimler Truck reached a new labour agreement with over 7,300 hourly workers represented by the United Auto Workers (UAW) across six facilities in the U.S. South, thereby averting a potential strike.

UAW President Shawn Fain expressed satisfaction with the tentative deal, stressing on the significance of securing favourable terms without concessions, especially considering the company's record profits. However, the agreement is subject to ratification by the workers.

Daimler Truck, known for producing Freightliner and Western Star trucks along with Thomas Built buses, faced the looming threat of a strike, which was narrowly avoided with this agreement.

Both parties have signalled their intention to finalize the contracts swiftly, pending the workers' approval.

The negotiations at Daimler Truck hold particular significance as they coincide with upcoming votes at a Mercedes assembly plant in Alabama regarding potential UAW membership.

Fain disclosed that the agreement entails a substantial 25 per cent general wage increase over the four-year contract, aligning with the terms received by workers at major automakers in Detroit.

Upon ratification, workers can expect an immediate 10 per cent pay raise, followed by incremental increases in the subsequent months. Additionally, provisions for cost-of-living adjustments and profit-sharing, previously absent at Daimler Truck, are included in the deal.

Furthermore, the agreement addresses concerns about wage disparities among workers and enhances job security and health and safety benefits.

The decision to avert a strike comes after overwhelming support from Daimler Truck workers, with 96 per cent voting in Favor of strike authorization in March.

While the negotiations proceeded, the UAW also pursued legal action against the company, alleging unfair labour practices and violations of federal labour laws.

Following successful agreements with major automakers last fall, the UAW has redirected its efforts towards organizing non-union plants across the country. Recent victories, including the successful unionization vote at a Volkswagen plant in Tennessee, underscore the growing momentum for labor rights in the automotive industry.

(With Reuters inputs)
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