Birmingham, Alabama – The United Auto Workers union has successfully negotiated a last-minute tentative agreement with Daimler Truck, preventing a potential strike that could have impacted over 7,000 workers. The agreement, reached just before the expiration of the previous six-year contract, covers employees at various facilities in North Carolina, as well as distribution centers in Atlanta and Memphis, Tennessee.
According to UAW President Shawn Fain, the new four-year contract includes wage increases exceeding 25%, with a 10% raise upon ratification. Additionally, the deal eliminates wage tiers at the company, introduces cost-of-living adjustments, and implements profit-sharing for the first time in Daimler’s history. Fain expressed satisfaction that the company engaged in discussions as the deadline approached, leading to a celebratory outcome.
While the agreement marks a significant achievement for the UAW and its members, it still requires approval from union members before finalization. Daimler has expressed optimism about the potential mutual benefits that the new contracts can bring to all parties involved in the agreement. Notably, Daimler, once part of Mercedes-Benz before its separation in 2021, emphasizes the importance of reaching favorable terms for its workforce.
This development with Daimler comes amid a broader initiative by the UAW to organize auto assembly plants in the southern United States, following successful contracts with Detroit automakers. The recent vote at a Volkswagen AG plant in Chattanooga, Tennessee, where 73% of workers chose to join the UAW, signaled the union’s initial success at a southern assembly facility owned by a foreign automaker. As workers at Mercedes factories in Tuscaloosa, Alabama, prepare for a UAW representation vote in May, the union’s efforts have faced opposition from southern Republican governors and business leaders.
The ongoing efforts by the UAW to expand its presence in the southern auto industry underscore the changing landscape of labor relations in the region. The successful negotiations with Daimler reflect the union’s commitment to securing favorable terms for its members and advancing worker rights in the automotive sector. As the union continues to navigate challenges and opposition, the outcome of future representation votes will shape the trajectory of labor relations in the southern United States.