The United Automobile Workers (U.A.W.) reached a last-minute deal with Daimler Truck in North Carolina to provide workers with a 25 percent raise and avoid a strike that was set to begin the following day. The new contract covers 7,300 Daimler employees at four factories in North Carolina, where Freightliner and Western Star trucks, as well as Thomas Built buses, are manufactured. The deal, which includes profit sharing, automatic cost-of-living increases, and equal pay among workers at the North Carolina factories, represents a win for the U.A.W. as it seeks to expand its influence in the historically union-averse Southern states.
The threat of a strike at Daimler Truck had potential national political implications, as North Carolina is seen as a key battleground state with a Democratic governor, despite narrowly voting for President Biden’s opponent in the 2020 election. Mr. Biden had indicated that he may have intervened to support Daimler workers in their negotiations with the company, possibly creating tension with the state’s pro-business Democrats just months before the upcoming election. The U.A.W. has been working to build its presence in the South, with recent successes including Volkswagen’s Chattanooga factory and an upcoming unionization vote at a Mercedes-Benz factory in Alabama.
Workers at Daimler Truck, previously under the umbrella of Mercedes-Benz until 2021, have been represented by the U.A.W. for many years. The union has become more assertive in its negotiations after securing significant pay increases for workers at major car companies like Ford Motor, General Motors, and Stellantis following strikes in the previous year. The gains achieved at Daimler could provide momentum for the U.A.W.’s efforts to organize auto factories across the U.S., including at companies such as Toyota and Tesla. Workers at Daimler have expressed concerns about their financial struggles while the company has reported substantial profits, including a 44 percent increase in net profit from the previous year.
The agreement between the U.A.W. and Daimler Truck also addresses job security concerns among workers in North Carolina, who have witnessed some production move to Mexico in recent years. The U.A.W. negotiation team successfully secured provisions aimed at preserving jobs in the region. Additionally, the deal ensures that Thomas Built workers, who have seen less pay compared to their counterparts at other factories, will receive pay increases to address the wage gap. This agreement signifies a significant step toward equal pay for equal work among workers making both trucks and buses for the company.
The U.A.W.’s efforts in North Carolina highlight a larger push to address economic disparities within the auto industry and to secure better working conditions for employees. By securing this agreement with Daimler Truck, the union is not only achieving immediate gains for workers but also positioning itself for continued successes in organizing and advocating for workers in the Southern states. The contract negotiations with Daimler represent a significant victory for the U.A.W. as it strengthens its presence in traditionally anti-union regions and sets the stage for further organizing efforts in the future.
