PEORIA, Ill. – Details of a tentative six-year agreement between Caterpillar and the UAW have been released.
The previous deal expired at midnight Wednesday, and the agreement was struck right before that.
Caterpillar says there will be guaranteed wage increases and guaranteed lump sum payments at a combined 27%.
In the first year of the deal, upon ratification, employees will receive a 7% wage increase. Wage increases of 4% will occur in years 3, 5, and 6. Employees will receive lump sum payments of 4% in years 2 and 4.
The night shift premium rate will increase to $0.75/hour upon ratification, and increase to $1.00 in 2025. There will also be a bonus of $300 per year in 2023 and 2024, with $800 per year after that.
Caterpillar says they will also increase their match that employees make to their retirement plans, from 50% to 75%, up to 6% of eligible pay. Employees will also receive a one-time contribution bonus of $10,000 when they reach 20 years of work.
The company also plans to provide additional and more flexible vacation time, additional break time, and doubling paid parental leave.
Other items included in the tentative agreement include ending random drug testing for marijuana, prohibiting plant closing, and establishing limits for temporary assignments.
UAW still needs to schedule ratification votes. The dates of those are not known yet. Caterpillar says the current agreement will be extended until voting is complete.
