In a significant development, the United Auto Workers (UAW) has successfully reached a tentative agreement with Allison Transmission Holdings Inc (ALSN.N), covering 1,500 workers in Indianapolis, as announced by the labor group on Friday.
This four-year accord ensures a starting wage of $20 per hour for UAW members, along with retroactive pay increases dating back to Nov. 15 of the preceding year. Additionally, the agreement encompasses two bonus categories totaling $7,000, according to the union's statement.
"The agreement, endorsed by the International UAW and Local 933 leadership, awaits ratification by union members," stated Allison Transmission in an email correspondence with Reuters.
George Freeman, the representative for the workers, expressed optimism about the agreement, stating, "No deal is perfect, but this one comes damn close." He anticipated a favorable outcome from the workers' voting process.
Following the expiration of the labor contract on Nov. 14, workers sought improved terms and overwhelmingly rejected an earlier proposal from Allison, citing unaddressed "core demands," as highlighted by the UAW.
The proposed terms encompassed eliminating wage and shift premium tiers, along with enhancements such as 6% to 8% increments in 401k contributions and an increment in legacy pensions to $59.45 by the contract's conclusion.
This pursuit of improved worker conditions aligns with a broader trend in U.S. unions advocating for enhanced wages, benefits, and working environments.
Led by assertive President Shawn Fain, the UAW employed robust negotiation strategies against the Detroit Three automakers last year, securing record contracts for its workers.
Allison Transmission, headquartered in Indianapolis, specializes in manufacturing fully automatic transmissions for medium- and heavy-duty commercial vehicles, U.S. defense vehicles, and electrified propulsion systems.
Its clientele includes significant entities such as the Pentagon, Traton SE, Daimler AG, and PACCAR.
As per its latest annual filing, Allison reported profits of $503 million for the nine months through Sept. 30, marking a robust 29% increase year-over-year, with approximately 74% of its revenue derived from North America.
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