Indianapolis-based Allison Transmission Holdings Inc. announced that members of the International Union, United Automobile, Aerospace and Agricultural Workers of America (UAW) Local 933 ratified a new five-year collective bargaining agreement (CBA) which becomes effective Dec. 3 and will expire on Nov. 14, 2017.
According to a press release, some of the key economic provisions from the new CBA include a $5,000 ratification bonus, maintenance of a multi-tier wage and benefit system, and an annual incentive compensation program.
Pension rates under the CBA are unchanged and the company match for tier two employee contributions to the 401(k) plan increased from 5% to 6%. The parties also agreed to modify retiree healthcare, more closely aligning it with the benefits offered in the Voluntary Employee Beneficiary Association (VEBA) trust covering retired U.S. auto workers from Ford Motor Co., Chrysler Group and General Motors Co.
The new CBA covers approximately 1,550 hourly employees who primarily work in the Indianapolis area. Allison is a major suppliers of motorhome transmissions.