UAW reaches tentative agreement with BMW Regional Distribution Center

UAW members who work at the BMW Regional Distribution Center in Palmer Township, Northampton County, have reached a tentative agreement that, if ratified, includes record wage increases and ends the two-tier wage system.

The agreement also introduces improvements to policies on time off, uniforms, overtime exemptions, and attendance, UAW said in a statement. The deal comes after workers at the BMW facility threatened to strike.

“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.”

According to UAW, BMW posted $50 billion in profits since 2021 and paid out $7.2 billion to shareholders last year.

BMW's shares slipped 2.7% in March after the German luxury carmaker reported a core automotive margin on 2023 earnings before interest and taxes of 9.8%, short of the 9.9% forecast by analysts in a company-provided consensus, according to Reuters.

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.

“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.”

Workers at the RDC will attend informational meetings and vote on the agreement in the coming days.

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