UAW, BMW Regional Distribution Center Reach Historic Tentative Agreement

Workers threatened to strike if a more favorable contract was not offered before the June 30 expiration of the current one.


UAW members at the BMW Regional Distribution Center (RDC) in Palmer Township, PA, have secured a tentative agreement that promises record wage increases and the elimination of the contentious two-tier wage system.

The agreement, if ratified, also includes significant improvements to policies on time off, uniforms, overtime exemptions and attendance. This breakthrough comes after a strike threat from the workers compelled BMW to offer a contract that recognizes their contributions.

“We knew that if we stuck together and refused to be divided, we could win,” said Zach Haas, chief steward and bargaining unit chair. “This agreement is going to mean a better life for me and my coworkers.”

Since 2021, BMW has amassed $50 billion in profits; it distributed $7.2 billion to shareholders last year alone. Despite these profits, workers at the facility have faced stagnant wages and benefits, leading to a decline in their standard of living, while BMW CEO Oliver Zipse received nearly $10 million in compensation in 2023.

Over the past weeks, workers at BMW's regional distribution center intensified their campaign for a favorable contract ahead of the June 30 expiration of the current agreement. They organized red shirt days and held multiple rallies, often supported by community leaders. On June 8, an overwhelming 99% of members voted to authorize a strike, signaling their readiness to take action if necessary.

“I couldn’t be prouder of these workers for demanding better working conditions and a better life for themselves,” said UAW Region 9 Director Daniel Vicente. “They stood together and showed BMW that they were willing to do what needed to be done to win what they know they deserve. They’re a testament to the power of solidarity.”

The UAW members at the RDC will soon attend informational meetings and vote on the proposed agreement. This tentative deal follows a series of recent contract victories for the UAW, including significant wins at major companies such as the Big Three automakers, Daimler Truck, Allison Transmission and Aramark.

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