Allison Transmission Workers to Vote Jan. 16 on Labor Deal

Union Negotiators, Company Conclude Second Tentative Agreement
Allison Transmission worker
Allison and UAW Local 933 reached a second tentative agreement on a contract Jan. 5. (Allison Transmission)

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Some 1,500 unionized employees at Allison Transmission Holdings are set to vote Jan. 16 on ratifying a revised labor agreement, the United Auto Workers union Local 933 said.

Automated transmission specialist Allison and UAW Local 933 reached a second tentative agreement on a contract Jan. 5, the company said. The contract was endorsed by the International UAW and Local 933 leadership, it added.

Explanation meetings are scheduled to be held at the UAW Local 933 Union Hall on Jan. 12, according to the union.

If the agreement is approved by the membership by the end of Jan. 16, unionized employees at Allison will each receive a ratification bonus of $7,000, according to a document posted on Local 933’s website.

Among the key elements of the latest tentative agreement are:

  • Elimination of wage tiers
  • A minimum 19% top rate wage increase over the life of the agreement, except for oilers and material services employees hired on or before Feb. 1, 2008
  • Average wage growth of the life of the agreement compared with current rate for all employees is 38.6%
  • Average wage growth versus the current rate for all production employees is 46.2%
  • Increase in 401(k) match to 8% from 6% for employees hired on or after Feb. 1, 2008
  • Juneteenth is now a holiday

Also, changes to wage rates are effective upon ratification retroactive to Nov. 15 while changes to wage rates in subsequent years take effect on the first Monday of September.

The UAW — which has been antagonistic in talks with segments of the automotive and truck industry over the past few months — sought to drum up support for ratification.

“Allison Transmission workers at UAW Local 933 just showed us the power of being willing to go on strike. They’ve won a historic tentative agreement with life-changing wage increases and more,” the union posted Jan. 11 on X.

Backing for the deal goes up to the highest echelons of the UAW.

Shawn Fain


“Very proud of our members and leadership at Local 933 Allison Transmission, willing to Stand Up, for their fair share of the fruits of their labor! Together we will win!!!” UAW President Shawn Fain wrote Jan. 11 on X.

The employees rejected a previous deal the medium- and heavy-duty truck transmission supplier struck with union negotiators. Around 96% of Local 933 Indianapolis members employed by Allison voted against a tentative agreement concluded a day before Thanksgiving.

Members of the union remained on the job while talks continued after rejecting the first tentative agreement.

UAW Local 933 authorized a strike Oct. 25 with 99% approval. A 2017 labor deal was due to expire Nov. 14.

Under the first tentative agreement, production employees hired before Feb. 1, 2008, would receive a 10% wage increase upon ratification of a new labor deal followed by 5% lump sum payments in 2025, 2026 and 2027. Production employees hired after Feb. 1, 2008, would receive a 10% or greater wage increase upon ratification, a 5% lump sum payment in 2025, a 3% wage increase in 2026 and a 5% lump sum in 2027.

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Indianapolis-based Allison operates manufacturing facilities in the United States, Hungary and India, the largest of which is in its hometown.

Allison reported third-quarter 2023 net sales of $736 million, a 4% rise compared with $710 million in the same period a year earlier, driven by an 11% increase in North American on-highway division sales.

The company said the increase was primarily driven by strength in customer demand for Class 8 vocational and medium-duty trucks and price increases on certain products.