Allison Transmission strike potentially averted after tentative agreement
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As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowA tentative agreement between the United Auto Workers union and Allison Transmission Inc. on Friday pumped the brakes on a potential strike threatened last week, the company and UAW announced.
The four-year contract has a starting wage of $20 an hour and bonuses adding up to $7,000. The new deal also includes “historic wage increases” and the elimination of wage tiers, the union said.
After contract negotiations broke down last week, about 1,500 union workers were preparing to strike. UAW Local 933 released a video last Tuesday where UAW workers expressed frustration at the lack of progress and “lowballing” in negotiations.
“Does anybody want to strike? No,” Craig Myers said in the video. “What we want is a reasonable, fair contract, but to get to that better contract, are we willing to go out on strike and take a stance? Yeah.”
The UAW was touting the potential move as the first major strike of 2024. Allison Transmission is the fourth largest manufacturing employer in the Indianapolis area.
The previous contract expired Nov. 14, 2023.
Members will soon vote on the new contract. The agreement is endorsed by the International UAW and Local 933.