Daimler Truck reaches four-year deal with UAW workers in US South, averts strike

Daimler Truck has reached an agreement with over 7,300 hourly employees represented by the United Auto Workers (UAW) at six facilities in the southern region of the US to avoid a strike that was scheduled for midnight ET on Friday. UAW President Shawn Fain announced this development through a late-night video statement from Charlotte, North Carolina, near where Daimler Truck’s plants are located. According to him, record profits should mean no concessions in contract negotiations and the new deal is an outcome of workers’ solidarity and determination over months. The agreement still needs approval by the employees as part of a four-year contact which comes at a crucial time three weeks before votes on whether or not UAW membership will be granted to Mercedes assembly plant staff based out of Alabama. Daimler Truck, formerly known as Mercedes’ truck division, manufactures Freightliner and Western Star trucks as well as Thomas Built buses in the US south region. The company stated that it hopes for a swift finalization of contracts following workers’ approval. Last year, similar deals were signed between UAW representatives from General Motors, Ford Motor Company (F), and Stellantis; both instances involved potential strikes which never came to fruition due to last-minute concessions by the companies during negotiations in fall 2021. Under this new deal with Daimler Truck workers will receive a minimum of 25% general wage increase over four years, matching what was granted to Detroit Three automakers’ employees earlier on. The agreement also includes cost-of-living adjustments and profit sharing for the first time at Daimler Truck as well as an end to tiered wages that paid bus builders less than heavy truck manufacturers. Workers will receive a 10% immediate pay raise, followed by another two raises of three percent each in six months’ and one year respectively from contract commencement; low-paid staff at Thomas Built could also benefit greatly with increases exceeding $8 per hour while some skilled trades workers may see over $17 an increase. Additionally, the deal incorporates enhanced job security as well as improved health and safety benefits for employees. Around 96% of Daimler Truck’s workforce based out of North Carolina facilities approved of going on strike; it must also vote to accept this new agreement. The UAW has recently focused its efforts on organizing non-union plants belonging to more than a dozen automakers in the US, with Volkswagen (VWAGY) employees at Chattanooga’s plant voting for unionization last week and Mercedes staff based out of Alabama set to vote during May 13.