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Allison Transmission announces tentative deal to avoid strike

Allison Transmission announces contract agreement with union

INDIANAPOLIS (WISH) — Allison Transmission and union negotiators have announced a tentative contract agreement that would avoid a strike at the company’s Indianapolis facility.

The deal was reached Friday evening and announced on Allison’s website.

The company post says the deal has been endorsed by both International UAW and Local 933 leaders.

A social media post by the United Auto Workers union says the four-year deal would include an end to wage tiers, historic wage increases, gains for 401k and legacy pensions, and add Juneteenth as a paid holiday.

A union update to its members also notes the agreement would end “shift premium tiers”, include retroactive pay to November 15, 2023, and guarantee no UAW member would have a starting wage of less than $20 per hour.

The tentative deal comes months after negotiations began for a contract.

Allison employees have been working under the terms of an expired collective bargaining agreement since Nov. 14.

Union members overwhelmingly rejected a tentative four-year contract offer on Dec. 1.

A union spokesperson said that deal did not meet the UAW’s core demands.

The union members on Wednesday threatened to strike if their demands weren’t met, saying that starting wages for core jobs in the company were “comparable to fast food workers.”