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The
four-year contract guarantees a starting wage of $20 an hour for
UAW employees and retroactive pay hikes until Nov. 15 last year,
and two categories of bonus that amount to $7,000, the union
said.
"All bargaining unit employees with more than four years of
seniority will immediately receive traditional pay, with a
general wage increase on top of that," the UAW said, a reference
to what it said was the 'schedule D top rate'.
"The agreement has been endorsed by the International UAW and
Local 933 leadership and is subject to ratification by union
members", Allison Transmission said in an email to Reuters.
"No deal is perfect, but this one comes damn close," said George
Freeman, chairman of the panel representing the workers, adding
that he expected workers would vote for it.
The workers have sought improved terms after a labor contract
expired on Nov. 14. They had overwhelmingly voted to reject an
earlier offer from Allison, as it refused to address "core
demands", the UAW said.
The plans included an end to wage and shift premium tiers, gains
of 6% to 8% for 401k contributions and an increase in legacy
pensions to $59.45 by contract end, the UAW said.
The worker demands follow a larger pattern of U.S. unions
pressing companies for better wages, benefits and working
conditions.
Led by hard-charging president Shawn Fain, the UAW adopted
aggressive negotiating tactics against the Detroit Three
automakers last year, to secure record contracts for workers.
Allison, based in Indianapolis, Indiana, makes fully automatic
transmissions for medium- and heavy-duty commercial vehicles and
U.S. defense vehicles, as well as electrified propulsion
systems.
Its customers include the Pentagon, Traton SE, Daimler AG and
PACCAR.
Allison reported profit of $503 million for the nine months
through Sept. 30, up about 29% on the year, drawing about 74% of
revenue from North America, its latest annual filing showed.
(Reporting by Gokul Pisharody and Aatreyee Dasgupta in Bengaluru;
Editing by Sandra Maler)
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