April 26 (Reuters) - Daimler Truck agreed to
a new labor contract on Friday with over 7,300 hourly workers
represented by the United Auto Workers (UAW) at six facilities
in the U.S. South, averting a strike at the 11th hour.
"For months, we said that record profits should mean a
record contract with no concessions," UAW President Shawn Fain
said in a late-night appearance on YouTube from Charlotte, North
Carolina, near where the company has plants.
"Our determination and solidarity has delivered," he said of
the tentative deal, which workers still must ratify.
Daimler Truck, which makes Freightliner and Western Star
trucks and Thomas Built buses, had faced the possibility of a
strike beginning at midnight ET (0400 GMT on Saturday).
Daimler Truck said in a statement: "The UAW members... will
now be asked to vote on the new contracts, and we hope to
finalize them soon, for the mutual benefit of all parties."
The deal at the German truck maker, which was spun off from
what is now automaker Mercedes, comes just three weeks
before votes on whether to join the UAW will be tallied at a
Mercedes assembly plant in Alabama.
Fain's speech on Friday started almost an hour later than
scheduled as Daimler Truck made late concessions, Fain
explained. Several times during the talks last fall with the
Detroit Three automakers - General Motors ( GM ), Ford and Stellantis ( STLA ) -
the threat of a deadline led the companies to make concessions
to avoid the strike's expansion.
Under Friday's deal, Daimler Truck workers will receive a
minimum 25% general wage increase over the four-year contract,
Fain said. That would match what workers at the Detroit Three
received.
When the deal is ratified, Fain said members will receive an
immediate 10% pay raise, followed by 3% increases six months and
12 months later.
They also will receive cost-of-living adjustments to offset
inflation and profit-sharing, both for the first time at Daimler
Truck, as well as the end of wage tiers that paid those building
buses less than those building heavy trucks, he said.
The lowest paid workers at Thomas Built will see raises of
more than $8 an hour and some skilled trades workers at that
unit will see increases of more than $17 an hour, Fain said.
The deal also includes increased job security and improved
health and safety benefits, he said.
About 96% of the Daimler Truck workers at four factories in
North Carolina, and parts warehouses in Georgia and Tennessee
had voted in March to authorize a strike.
The union had also filed unfair labor practice charges with
the U.S. National Labor Relations Board against the company,
citing violation of workers' rights and federal labor laws, and
for failing to bargain in good faith.
Since the deals last fall with the Detroit Three, the UAW
has turned its efforts to organizing non-union U.S. plants of
more than a dozen automakers.
The UAW clinched a historic victory at a Volkswagen
plant in Chattanooga, Tennessee, last week, and
workers at a Mercedes factory in Vance, Alabama, are
going to vote on whether to join the union during the week of
May 13.