INDIANAPOLIS (WISH) — Union workers at Allison Transmission have voted to ratify a new labor contract. The union says the new pay rate starts on Wednesday, January 17.

An update from Local 933 reports that more than 81.8% of the union members voted in favor of the new agreement Tuesday night and 18.2% voted against it. On January 26^th union members will receive a signing bonus, income protection, and any unpaid vacation. Retroactive wages will be paid out on February 23rd. 

A post online from Allison Transmission says, “Allison Transmission is pleased to have reached an agreement with the UAW Local 933 for a new four-year contract. This agreement reinforces our long-term strategy for continued success and achievable growth.”

The deal includes an end to wage tiers, adds historic pay increases, gains for retirement and legacy pensions, and adds Juneteenth as a paid holiday.

The Local 933 agreement ends “shift premium tiers”, including retroactive pay to Nov. 15, and guarantees no UAW member has a starting wage of less than $20 per hour.

The contract agreement was reached on Jan. 5, after months of negotiations.

In early January the union members 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.”

Union members also overwhelmingly rejected a tentative deal in December. Since Nov. 14, around 1,500 Allison employees had been working under an expired agreement, which now ends with this latest vote.

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