A potential threat to auto dealers and companies was averted when members of the International Brotherhood of Teamsters who move vehicles from factories and ports to local dealerships around the country ratified a new three-year labor agreement.
The ratification of a new National Master Automobile Transporters Agreement, which covers more than 4,000 union members, eliminates a potential disruption to the delivery of new vehicles at a time when dealers and manufacturers are attempting to rebuild their depleted inventories.
The Teamsters describe the new contract as the most lucrative carhaul deal in the union’s history. The union also said the new contract will help it organize non-union carhaulers. The non-union carhaulers, aided by union concessions and contract opened the door for non-union carriers, have taken a large bite out of a trade once almost completely unionized.
Plenty of improvments
The new agreement provides members with significant wage increases during the next three years, in addition to rate increases for miles driven.
“This agreement restores faith among our carhaul members and lays the foundation to rebuild a core Teamster industry after years of decline and neglect,” said Sean M. O’Brien, Teamsters general president and chair of the Teamsters National Automobile Transporters Industry Negotiating Committee.
“It will take hard work and vigilance to organize new workers and enforce this contract, but we have the ability to keep momentum moving in the right direction,” O’Brien added.
The contract increases the cost-of-living adjustments and secures other improvements, including work rules, maintenance of benefits, health and welfare and pension. It also makes MLK Day a paid holiday; increases other monetary items, such as lead premium, shift premium, boot allowance and border crossing. Also any driver who has pulls four or more legs on any trip will be paid the full rate or applicable zone rate whichever is greater on all legs.
The agreement was ratified by a 63% to 37% margin. Voter turnout was the highest in years, with more than 50% of the membership casting ballots. The new deal is retroactive to June 1, and it expires Aug. 31, 2025. The agreement covers more than 4,000 members at 29 local unions throughout the U.S.
Paves the way for more organizing
“Teamster carhaulers were the most important part of reaching this deal, providing input on proposals, and staying engaged throughout the bargaining process. Rank-and-file members of the bargaining committee played a key role in negotiations, providing their real-life, firsthand experience on the job during talks with the companies,” said Teamsters General Secretary-Treasurer Fred Zuckerman, who formerly worked as a carhauler.
“In recent years, rates in this industry stagnated and membership dropped. But we’ve reset the standard. This agreement is the most lucrative carhaul contract in the history of our union.”
The agreement also establishes a new national organizing model for the Teamsters to rebuild union density in the carhaul industry.
“This contract was all about putting members first. They were engaged throughout the process, and we listened to their input every step of the way,” said Avral Thompson, Teamsters Carhaul Division. “We have charted a new course with this agreement — resetting industry standards, improving working conditions and rebuilding union density for a stronger and more secure future.”