DETROIT: Daimler AG reached a new contract that covers US unionized workers that build diesel engines for heavy trucks at Detroit factory, the United Auto Workers said late Tuesday.
UAW Local 163, which represents some 2,300 workers at Daimler's Detroit Diesel division, said its members had ratified a five-year contract that raises compensation for all workers.
The new agreement includes a $5,000 signing bonus and a small wage increase.
First-year employees made $15 per hour and have to complete 9 years of service before collecting $24 dollars per hour. Employees with 10 or more years of service will earn $30.49 per hour, according to contract highlights published by the union.
The new contract also includes pension increases for eligible employees and an increased company matching contribution for non-pension eligible employees.
"This 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," UAW Local 163 President Ralph Morris said.
Company negotiators "recognized the fact that the UAW employees here in Detroit have gone above and beyond to make certain our heavy-duty engines are the best and our customers are satisfied," said Local 163 Shop Chairman Mark Gibson.
Last fall, Daimler announced it would invest $475 million and created 330 new jobs at the company's factory on the edge of Detroit to launch production of a new line of automatic transmission designed for heavy-duty trucks and a new engine for smaller, medium-duty commercial vehicles.
Wolfgang Bernhard, the head of Daimler Trucks, said project at the Detroit Diesel site would give Daimler the opportunity to extend its leadership in the North American market and lower the costs for its customers at the same time.
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