By 99 percent margin, workers at Detroit Axle authorize strike against Daimler Truck

Tick tock, Mother Trucker: Time is up for Daimler Truck executives, as workers at Detroit Axle have authorized a strike, with 99% of workers backing action. | Photo via UAW

DETROIT—After a strike authorization vote that saw a 99% yes margin, more than 400 workers at Daimler Truck’s Detroit Axle plant, members of United Auto Workers Local 163, are prepared to take to the streets against the truck company Friday at midnight.

The workers at this plant produce front and rear axles, transmissions, and supply parts for the Freightliner, Western Star, and Thomas Built Buses. They face a significant pay disparity compared to other Daimler workers, however. Tiered wages is a major sticking point in negotiations.

Detroit Diesel workers are in the same plant but earn $10 more per hour for performing the same assembly work. Both groups are members of UAW Local 163 but are covered under separate contracts.

The union said Daimler is using “divide and conquer” tactics, a phrase they’ve used to describe the maneuvers of the capitalist class in general, of which Daimler owners and executives are undoubtedly a part. The issue of two-tiered wages was a huge factor in the UAW’s Big 3 Stand-Up Strike last year.

The highest hourly wages for Detroit Axle workers in January 2024 were $24.50, the UAW indicated. In contrast, Detroit Diesel workers earned $34.62 per hour and are scheduled to receive a wage increase to $36.83 per hour by June 2027.

The potential strike at Detroit Axle follows the major successes of other UAW members at Daimler Truck. In 2024, workers at Freightliner Trucks, Western Star Trucks, and Thomas Built Buses achieved significant wins in their contract, such as wage increases exceeding 25% and the initiation of profit-sharing and cost-of-living adjustments at Daimler for the first time.

“The company claimed that because the profit margin for axles and transmissions is lower than the margin for diesel engines, then it’s entitled to treat the Axle workers as second-class citizens,” details an article in UAW Local 5287 News, a publication of the union local at Daimler’s Thomas Built Buses complex in High Point, N.C.

“Our victorious contract struggle and defeat of two-tier wages for TBB workers this year has undermined this company logic,” it said. “The stage has been set for UAW Local 163, with the broader UAW standing behind them, to stand up and win something that matches or even exceeds what we won in North Carolina at Detroit Axle.”

Other demands at Detroit Axle also include profit-sharing bonuses, a cost-of-living adjustment provision in their contract, a shorter duration for wage progression, enhanced shift premium pay, increased company 401(k) contributions, more tool allowance money for skilled trades workers, and supplemental unemployment benefits.

Zachary Harper, a committeeman at Detroit Axle, said in the UAW press release that “this overwhelming strike vote shows we are no longer content with the crumbs from Daimler’s pie.”

“Daimler profits increased 39% in 2023. The CEO gave himself a 100% raise! It’s time for this corporate greed to STOP,” the AFL-CIO said on X.

“Other plants that work for Daimler are getting paid up…there’s no reason we should be getting left behind,” one axle worker said.

In December, Daimler announced a significant investment of $285 million at its Detroit complex. This project, which received incentives totaling over $30 million in state grant funding and a tax abatement, is aimed to enhance current production and equip the plant to manufacture electric components for medium and heavy-duty electric trucks, the Detroit Free Press reported.

“Daimler can afford to provide UAW members at Detroit Axle what every worker deserves: pay that keeps up with inflation, a safe workplace, and a secure retirement,” said Laura Dickerson, Director of UAW Region 1A.

“Since 2020, Daimler has seen over $17 billion in profits. Daimler can afford to provide UAW members at Detroit Axle what every worker deserves: pay that keeps up with inflation, a safe workplace, and a secure retirement,” she added. “If it takes a fight to win that, our members are ready.”

Daimler’s goal is to keep the workers divided. They hope to prevent the UAW from further consolidating the expiration dates for its contracts with the company—in effect, undermining the solidarity of workers there.

While Local 163 is not covered under the Daimler UAW master agreement, the Detroit Diesel contract expires on April 28, 2028—just under two months after the expiration of the Daimler master contract. If workers at Local 163, both Detroit Axle and Detroit Diesel, are able to align their contract expiration dates they will be better positioned to strike Daimler with more force and secure better contracts.

With a unified contract expiration date, the Axle and Diesel workers would also be able to join forces next time around with the 7,300 workers covered under the UAW’s Master agreement at Daimler in North Carolina and beyond.

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CONTRIBUTOR

Cameron Harrison

Cameron Harrison is a trade union activist and organizer for the CPUSA Labor Commission. Based in Detroit, he was a grocery worker and member of UFCW Local 876 where he was a shop steward. He also works as a Labor Education Coordinator for the People Before Profits Education Fund, assisting labor organizations and collectives with education, organizing strategy and tactics, labor journalism, and trade union support.