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Daimler Workers in Detroit Ratify UAW Contract

May 25, 2016
The agreement includes a $5,000 signing bonus and a $1 per hour wage increase.

UAW Local 163 members at Daimler’s Detroit Diesel plant yesterday ratified a five-year agreement that includes a pay raise and a commitment from the company to build two displacements of a medium-duty truck engine in the near future.

The agreement includes a $5,000 signing bonus and a $1 per hour wage increase for all employee classifications. It also includes pension increases for pension-eligible employees, and an increased company matching contribution for non-pension eligible employees. 

The agreement cuts by three years the amount of time it takes for newer employees on its second hiring tier—called “in-progression employees”—to grow into the top wage tier. Senior employees will also receive efficiency awards of 2% of pay in 2017 and 2019.

"Since 2012 Detroit [Diesel] has been on a path of efficiency and growth," Jeff Allen, head of operations at Detroit Diesel, said in an email. He noted that during that time, the plant has added production of the  TCC Turbo Charger Captive and DT12 Heavy Duty Transmission. The plant is to also begin production on the MDEG medium duty diesel engine by 2018. 

"None of this would have been possible without a shared vision of excellence in terms of quality, delivery and cost," he added. "This contract solidifies and sustains the progress we have made over the last 4 years."

Local 163 Shop Chairman Mark Gibson said in a statement that he was pleased by the "significant gains" for the workers and the recognition from management "that the UAW employees here in Detroit have gone above and beyond." 

Approximately 1,100 workers are covered by the new agreement. The wage increases will be applied to all classifications by 2020.

Detroit Diesel is a subsidiary of Daimler USA.

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