BMW workers at the OEM’s regional distribution center in Palmer Township, Pennsylvania have voted to ratify a new contract securing raises of up to 33% and ending the two-tier wage system over the life of the agreement.

BMW-certified repair shop executives told Autobody News that the tentative agreement would help ensure a continued steady supply of OEM parts from the Northeast distribution center. The deal was made following a “credible strike threat,” according to a UAW news release.

On June 8, members voted by 99% to authorize a strike, “sending a clear message to BMW that workers were more than willing to walk if the company continued to lowball negotiations,” UAW said. The agreement was reached on July 8.

The agreement also introduces major improvements to policies on time off, uniforms, overtime exemptions, and attendance, according to UAW.

“BMW has raked in a massive $50 billion in profits since 2021 and paid out $7.2 billion to shareholders last year alone,” UAW said. “Company CEO Oliver Zipse was generously rewarded with a nearly $10 million payday in 2023. Yet, workers at the facility saw their standard of living continue to decline as wages and benefits stagnated for years.”

Zach Haas, chief steward and bargaining unit chair, added, “The company has been making billions in profits while many of us had gone for years without a raise, which is unacceptable. We used our collective power, including the very real threat of withholding our labor, to win a great deal that rewards our work and gives us a stronger voice and platform for making the plant safer.”

UAW said many workers will receive an 11% raise immediately.

The agreement also contains a new process to guarantee that workers’ safety and health concerns are heard and dealt with in a timely and appropriate manner, according to the release.

The agreement is also the latest in UAW’s “Stand Up Movement” which is a strike that grows over time to give national negotiators maximum leverage and maximum flexibility to win a record contract, UAW said.

Pennsylvania-based Kilkeary’s Auto Body Parts Manager Zach Brust said when one RDC is out of a part, BMW doesn’t allow distribution centers in other regions to cross-ship. He told Repairer Driven News he believes the issue is there are too many damage claims and parts being delivered in an unusable state due to third-party courier services.

Brust added that parts flow has stayed the same since there wasn’t notice of an issue.

Images

Featured image: UAW members of the Local 677 in Pennsylvania. (Provided by UAW)