BMW and the United Auto Workers union (UAW) have reached a new four-year labor agreement, bringing an end to weeks of negotiations and avoiding a potential strike.
The agreement, which covers approximately 11,000 workers at BMW’s U.S. plants, includes wage increases, bonuses, and improved benefits. Union members will also receive a signing bonus of $9,000 when the agreement is ratified.
The new contract also includes a commitment from BMW to invest $600 million in its U.S. manufacturing facilities over the next four years. This investment will go towards upgrading and modernizing the plants, as well as creating new jobs.
In a statement, UAW President Rory Gamble said, “Our members at BMW have shown dedication and resilience throughout this process, and their hard work has resulted in a strong agreement that recognizes their contributions to the company.”
BMW’s U.S. plants, located in South Carolina and Tennessee, produce a variety of vehicles including the X3, X4, X5, X6, and X7 SUVs.
The agreement comes at a time when the U.S. auto industry is facing significant challenges, including a shortage of semiconductor chips, which has resulted in production disruptions and reduced vehicle inventory.
However, BMW has stated that it expects to see strong sales growth in the U.S. market in the coming years, driven by demand for SUVs and electric vehicles. The company plans to launch its iX electric SUV in early 2022, with production taking place at its plant in South Carolina.
Overall, the new labor agreement between BMW and the UAW is a positive development for both parties, as it provides stability and security for workers while also setting the stage for future growth and investment in the U.S. auto industry.
