DTNA and UAW Reach Last-Minute Agreement

A New Four-Year Contract with a 25% Wage Increase

Daimler Truck North America and the United Auto Workers union have successfully negotiated a preliminary four-year labor contract just before the existing agreement was due to expire. This new contract, affecting approximately 7,400 employees at various Freightliner and other DTNA facilities, promises a significant 25% increase in wages over its duration.

The tentative agreement was finalized in the nick of time on April 26, covering workers at facilities including the Cleveland Truck Manufacturing Plant and Mount Holly Truck Manufacturing Plant in North Carolina, which are major centers for Freightliner’s production in the U.S. Additionally, the deal includes employees at the Gastonia Parts Plant, Atlanta and Memphis Parts Distribution Centers, and the Thomas Built Buses facility.

Negotiations were extensive, beginning with location-specific terms in February and broadening to general terms in April, with an emphasis on health and safety. A DTNA spokesperson emphasized the company’s commitment to fair negotiations that would benefit all parties involved.

The UAW members from the six affected locations are set to vote on this agreement, though a specific voting timeline has not been announced. The union has praised the deal, highlighting not only the significant wage increase but also the elimination of tiered wages and the addition of profit-sharing and a Cost-of-Living Agreement.

UAW President Shawn Fain highlighted that this is the first time a COLA has been included in a DTNA contract, underscoring the union’s successful strategy of leveraging record profits for substantial contractual improvements. Fain explained that the agreement promises a 25% wage increase spread over the contract’s term, including an immediate 10% raise followed by additional increments.

Despite reaching a tentative agreement before the expiration of the old contract, there remains cautious optimism, as past initial agreements have been rejected within the industry. The outcome of the UAW vote will ultimately decide the deal’s fate.

Daimler Truck is set to report its first-quarter earnings soon, coming off a substantial profit increase in the previous quarter, underscoring the strong market demand that has boosted the company’s financial performance. Meanwhile, other sectors of the truck and passenger car industry continue to see labor negotiations influenced by recent successes and challenges, including notable strikes and agreements that have reshaped wage structures and working conditions.