UAW Reaches Tentative Agreement with Auto Parts Maker Allison Transmission: Report
TEHRAN (Tasnim) – The United Auto Workers (UAW) union struck a tentative deal with auto parts maker Allison Transmission Holdings Inc. on a pilot agreement covering more than 1,000 workers in Indianapolis, labor group said on Friday.
The four-year contract guarantees a starting wage of $20 an hour for UAW employees and retroactive pay hikes until November 15 last year, and two categories of reward that amount to $7,000, the union said.
“All bargaining unit employees with over four years of seniority will immediately receive traditional pay, with a general wage increase on top of that,” the UAW said, a reference to what it said was the ‘schedule D top rate’.
“The agreement has been approved by the International UAW and Local 933 leadership and is subject to ratification by union members”, Allison Transmission said in an email to Reuters.
“No deal is perfect, but this one comes damn close,” said George Freeman, chairman of the panel representing the workers, adding that he expected workers would vote for it, srnnews.com reported.
The workers have sought improved terms after a labor contract expired on November 14. They had overwhelmingly voted to reject an earlier offer from Allison, as it refused to address “core demands”, the UAW said.
The plans included an end to wage and shift premium tiers, gains of 6% to 8% for 401k contributions and an increase in legacy pensions to $59.45 by contract end, the UAW said.
The worker demands follow a larger pattern of US unions pressing companies for better wages, benefits and working conditions.
Allison, based in Indianapolis, Indiana, makes fully automatic transmissions for medium- and heavy-duty commercial vehicles and US defense vehicles, as well as electrified propulsion systems.
