New Five-Year Labor Contract between Allison Transmission and UAW Local 933
Ratified by Union Members
INDIANAPOLIS, Nov. 29, 2012
INDIANAPOLIS, Nov. 29, 2012 /PRNewswire/ --Allison Transmission Holdings Inc.
(NYSE: ALSN) 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 December 3, 2012 and will expire on November 14, 2017.
(Logo: http://photos.prnewswire.com/prnh/20120702/DE33547LOGO )
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. Tier one and skilled tier two union
members will receive a lump sum payment equal to 3 percent of their base wage
in 2013 and again each year until 2016. Production tier two union members will
receive base wage increases ranging from 2 to 4 percent in 2013, 2015 and 2016
and a one-time 3 percent lump sum payment in 2014. Annual cost of living
allowances based on a variable consumer price index were eliminated and
replaced with a fixed annual lump sum payment of $1,000.
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 percent. 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.
About Allison Transmission
Allison Transmission is the world's largest manufacturer of fully-automatic
transmissions for medium- and heavy-duty commercial vehicles, medium- and
heavy-tactical U.S. military vehicles and hybrid-propulsion systems for
transit buses. Allison transmissions are used in a variety of applications
including on-highway trucks (distribution, refuse, construction, fire and
emergency), buses (primarily school and transit), motor homes, off-highway
vehicles and equipment (primarily energy and mining) and military vehicles
(wheeled and tracked). Founded in 1915, the Allison business is headquartered
in Indianapolis, Indiana, U.S.A. and employs approximately 2,800 people.
Allison has manufacturing facilities and customization centers located in
China, The Netherlands, Brazil, India and Hungary. With a global presence,
serving customers in North America, Europe, Asia, Australia, South America,
and Africa, Allison also has over 1,500 independent distributor and dealer
locations worldwide. More information about Allison is available at
This press release may contain forward-looking statements. All statements
other than statements of historical fact contained in this press release are
forward-looking statements. In some cases, you can identify forward-looking
statements by terminology such as "may," "will," "should," "expect," "plans,"
"project," "anticipate," "believe," "estimate," "predict," "intend,"
"forecast," "could," "potential," "continue" or the negative of these terms or
other similar terms or phrases. Forward-looking statements are not guarantees
of future performance and involve known and unknown risks. Factors which may
cause the actual results to differ materially from those anticipated at the
time the forward-looking statements are made include, but are not limited to:
risks related to our substantial indebtedness; our participation in markets
that are competitive; general economic and industry conditions; our ability to
prepare for, respond to and successfully achieve our objectives relating to
technological and market developments and changing customer needs; the failure
of markets outside North America to increase adoption of fully-automatic
transmissions; the discovery of defects in our products, resulting in delays
in new model launches, recall campaigns and/or increased warranty costs and
reduction in future sales or damage to our brand and reputation; the
concentration of our net sales in our top five customers and the loss of any
one of these; risks associated with our international operations; brand and
reputational risks; our intention to pay dividends; and labor strikes, work
stoppages or similar labor disputes, which could significantly disrupt our
operations or those of our principal customers. Although we believe the
expectations reflected in such forward-looking statements are based upon
reasonable assumptions, we can give no assurance that the expectations will be
attained or that any deviation will not be material. All information is as of
the date of this press release, and we undertake no obligation to update any
forward-looking statement to conform the statement to actual results or
changes in expectations.
SOURCE Allison Transmission Holdings Inc.
Contact: Melissa Sauer, +1-317-242-5000, firstname.lastname@example.org
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