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UAW and BMW reach tentative contract agreement with wage increases and two-tier system changes

The contract also introduces new policies on time off, uniforms, overtime exemptions, and attendance.

The United Auto Workers (UAW) and BMW have reached a tentative contract agreement for workers at BMW’s regional distribution center in Palmer Township, Pennsylvania. This agreement, announced on June 29, calls for wage increases and the phasing out of a two-tier payment system over the next five years. If ratified, the contract will last until June 2029.

The agreement comes after weeks of negotiations, following a June 8 UAW vote where 99 percent of members supported a strike if necessary. The approximately 120 workers at the center, which handles parts and motorcycle distribution in North America, will vote on the ratification early next week. Informational meetings will be held in the coming days to discuss the agreement.

Under the new contract, the two-tier wage system, where workers performing the same job are paid different rates, will be gradually eliminated. By 2029, all workers will earn equal wages, with hourly pay reaching $28.92, representing a 33.58% increase over the contract period. Additionally, BMW has guaranteed no increase in health insurance premiums for the first year.

BMW expressed confidence in the new collective bargaining agreement, stating that it contains generous and fair terms. The contract also introduces new policies on time off, uniforms, overtime exemptions, and attendance.

This tentative deal follows other UAW contracts within the Stand Up Strike movement, including agreements with the Detroit 3, Daimler Truck, Allison Transmission, and Aramark. However, the deal with BMW in Pennsylvania is not directly linked to the UAW’s broader effort to organize non-union auto plants in the U.S., including BMW’s assembly operations in Spartanburg, South Carolina.

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