According to media reports, on April 26th, Daimler Trucks North America reached a new labor contract with over 7,300 hourly workers represented by the United Auto Workers (UAW) at six southern U.S. factories, avoiding a potential strike at the last minute.
UAW President Shawn Fain, speaking via YouTube late that night in Charlotte, North Carolina, said, "For months, we've been saying record profits should result in a record contract without concessions." Referring to the interim agreement, he added, "Our resolve and solidarity have paid off."
Daimler Trucks North America produces Freightliner and Western Star trucks along with Thomas Built buses. Prior to the agreement, the company faced the possibility of a strike starting at midnight Eastern Time on April 27th.
Fain revealed that under the agreement reached on April 26th, Daimler Trucks North America workers will see at least a 25% overall wage increase over the four-year contract period, bringing their wages in line with those of workers at the Detroit Three automakers. Fain stated that upon approval of the agreement, workers will receive an immediate 10% raise, followed by additional 3% raises at 6 and 12 months.
Workers will also receive cost-of-living adjustments and profit-sharing to offset inflation, marking a first for Daimler Trucks North America. Additionally, the new contract ends the wage tier system, where workers producing buses earned less than those producing heavy-duty trucks.
Fain noted that hourly wage increases for the lowest-paid workers at Thomas Built factories will exceed $8, and some skilled workers at the factory will see wage increases surpassing $17. He mentioned that the agreement also includes enhanced job security and improvements in health and safety benefits.
In a statement, Daimler Trucks North America said, "UAW members will now be asked to vote on the new contract, and we hope to finalize the new contract soon for the mutual benefit of all parties."
Fain explained that due to Daimler Trucks North America's reluctance to make concessions, his speech on April 26th began nearly an hour later than scheduled. Threats of deadlines have in the past led to concessions from companies like Daimler Trucks North America to avoid expanding strikes during negotiations with the Detroit Three automakers (General Motors, Ford, and Stellantis) last fall.
In March of this year, around 96% of workers at Daimler Trucks North America's four North Carolina plants and parts warehouses in Georgia and Tennessee voted in favor of a strike.
UAW has also filed charges with the National Labor Relations Board (NLRB) against Daimler Trucks North America, alleging unfair labor practices, citing violations of workers' rights, federal labor law, and failure to engage in sincere negotiations.
