New car deliveries to dealers across the United States appear to be continuing as usual after the Teamsters union and distribution companies reached a contract agreement on May 31, 90 minutes before the midnight deadline, the Detroit News
The newspaper said the five-year deal, reached after three months of talks, is a compromise between an industry that is in an economic slump and a union aware of an increasing tendency of vehicle makers to turn to non-union companies to deliver cars.
The Detroit News
said the contract calls for wage increases of $1.30 an hour over five years but also imposes a two-year wage freeze. The increases do not take effect until the third year of the agreement, when drivers will receive an increase of 40 cents an hour, said the paper. There is an additional 40-cents-an-hour increase in the fourth year and 50 cents in the fifth and final year, the report added.
Teamster car transporter drivers earn an average of $20.68 an hour, the Detroit News noted
The newspaper said the deal still must be ratified by the 9,500 union members covered and ballots will be mailed to drivers after representatives of the 74 local branches review the contract and make a recommendation.