(Reuters) - UAW members at Allison Transmission's Indianapolis facilities voted to ratify a new labor agreement, adding to the union's recent list of victories including record wage hikes for workers at the Detroit Three automakers.
Nearly 82% of workers voted in favor of the proposed four-year deal, which guarantees a starting wage of $20 an hour along with retroactive pay hikes, 6-8% gains for 401k contributions and two bonuses amounting to $7,000, the union said on Wednesday.
The International United Automobile, Aerospace and Agricultural Implement Workers of America (UAW) Local 933 represents about 1,600 employees at Allison.
The deal also brings an end to wage tiers and an increase in legacy pensions to $59.45 by the end of the contract.
"We believe that this agreement not only reflects our shared values but also paves the way for a strong future of continued growth," Allison CEO David Graziosi said in a statement.
The workers at the company's Indianapolis facilities had been bargaining with the automatic transmissions and electrified propulsion systems maker for improved terms after their existing labor contract expired on Nov. 14, 2023.