Daimler's Detroit Diesel union workers ratify new labor contract

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Automotive News  /  May 25, 2016

UAW members at Detroit Diesel ratified a contract Tuesday that includes a wage increase and commits Daimler Trucks North America to new engine production.

UAW Local 163 members approved the contract by a margin of about 3-to-1, Local 163 President Ralph Morris said in an interview today.

"The negotiation that took place was an absolute model of finding the correct balance between the needs of the business to stay competitive and the need of our employees to have competitive compensation and job security," Jeff Allen, Detroit Diesel's head of operations, said in a statement today. "We negotiated with one another is a spirit of fairness and the result was truly a win/win situation."

The five-year deal includes a $1 wage increase for all workers, a $5,000 signing bonus and pension increases. It also reduces the amount of time needed for an “in-progression” worker to reach the highest wage tier by three years, according to a UAW statement.

"Wage and compensation packages were negotiated that more than maintain Detroit’s competitive advantage, while at the same time rewarding the performance of our team," Allen said in the statement. "A modernized gain sharing method was adopted that rewards efficiency and output. On the non-economic side of the negotiation a new level of cooperation was shown by both sides with a goal of maintaining and increasing efficiency and flexibility."

The contract also requires that Daimler Trucks build “two displacements of a medium duty truck engine in the near future,” the UAW said.

“To me, what really stood out is … in the past we were holding ground or even losing, but this time around we were able to come out with some positive gains for our members,” the UAW's Morris said.

Detroit Diesel is owned by Daimler AG, for whom it produces diesel engines. An email requesting comment from a company spokesman was not immediately returned.

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Union workers at Detroit Diesel ratify 5-year contract

The Detroit News  /  May 25, 2016

Union workers at Detroit Diesel have ratified a 5-year contract that raises compensation and commits the Daimler Trucks North America subsidiary to future work.

The agreement ratified Tuesday by UAW Local 163 includes a $5,000 signing bonus and a wage increase for all classifications. It also includes pension increases for pension-eligible employees and an increased company matching contribution for non-pension eligible employees.

Detroit Diesel Head of Operations Jeff Allen says in a statement it’s a “win/win situation” for the company and workers.

In a statement, UAW Local 163 President Ralph Morris Jr. says the contract “not only recognizes the hard work and contributions that our members have made to the success of Detroit Diesel, but positions Detroit Diesel to be a premier employer in southeastern Michigan for years to come.”