Daimler Trucks North America reached a new six-year deal with its 6,000 hourly workers in the U.S.

Daimler AG and the United Auto Workers confirmed workers have approved a new six-year labor contract that covers more than 6,000 employees in the United States.

“Daimler Trucks North America is very pleased that UAW members at six of our U.S. manufacturing and distribution locations have voted to ratify new collective bargaining agreements,” Daimler AG said in a statement.

“The agreements represent the continuation of a long and fruitful relationship between the UAW and DTNA, and we are proud to renew our partnership with them for another six years.”

The UAW was also pleased to reach resolution on the new six-year pact.

(Daimler AG pushing forward on restructuring plans. Click Here for the story.)

“UAW members at UAW Daimler Trucks North America went through challenging negotiations,” said UAW Secretary-Treasurer and Director of the UAW Heavy Truck Department Ray Curry. “Through perseverance and a strong voice at the table with management, they won a fair contract for workers that includes wage increases, lump sums and a ratification bonus.”

UAW President Gary Jones said the new deal with Daimler AG was well-earned by employees.

The contract includes a $4,000 ratification bonus, 3% wage increases in years one, three and five of the contract, a 2% wage increase in the sixth year, a 4% lump sum payment in year two and a 3% lump sum payment in year four.

The agreement also includes increased health care benefits and an end to the two-tier wage structure among workers with a new wage progression scale.

(Click Here for more about Freightliner’s plans for battery-electric trucks.)

The agreements cover UAW members at Daimler Trucks North America facilities at in High Point, North Carolina; Cleveland, North Carolina; Gastonia, North Carolina; Mount Holly, North Carolina; Atlanta, Georgia; and Memphis, Tennessee.

Daimler AG is splitting into three separate entities to improve efficiency and profitability.

UAW President Gary Jones says this agreement represents a hard-won victory for members at Daimler Trucks North America. “UAW members and their bargaining team at Daimler Trucks demonstrated that preparation and worker solidarity can achieve fair wages and benefits at the negotiating table,” said Jones.

Daimler AG is in the midst of a restructuring that will give Daimler Trucks, one of the world’s largest builders of commercial vehicles, more independence to act as a stand-alone company. The restructuring moved forward last week by the company’s board of management and the board of supervisors but will require the new structure shall be submitted for approval by shareholders at the Daimler Annual General Meeting in 2019.

(To see more about Daimler AG lowering earnings expectations due to trade tensions, Click Here.)

Once the new structure has been fully implemented the Mercedes-Benz Cars & Vans division, under the leadership of Mercedes-Benz AG, will have around 175,000 employees worldwide, while the Daimler Trucks & Buses division, under the leadership will have around 100,000 employees worldwide once the restructuring is complete.

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