Daimler to pay $480 million to settle dispute with UAW

Article by Christian Andrei, on August 30, 2014

Daimler will cough up $480 million in payment to settle a dispute with the United Auto Workers union over medical benefits for retired employees at its North American trucks operations, according to documents filed in a federal court in Tennessee.

The German carmaker has agreed to make contributions to a trust to finance a post-retirement health care plan that will support active and recently retired UAW-represented employees, court documents show.

The documents also show that the agreement was inked following a claim made by a group of retirees that the truck unit – divulged to be as Daimler Trucks North America LLC -- of illegally cutting their benefits.

A spokesman for the carmaker referred to its quarterly earnings report that said Daimler Trucks North America LLC and the UAW had signed an agreement over a health care plan as part of a collective bargaining agreement in May.

The report said that the cash outflow as a result of the agreement was expected in the fourth quarter of 2014. [source: automotive news - sub. required]

Topics: daimler, uaw

If you liked the article, share on:


Login or Create new account to add a comment!


It wasn’t too long ago when Maserati took the wraps off what appears to be the most gorgeous concept coupe ever made. The Alfieri coupe premiered at the 2014 Geneva...
by - October 23, 2016
Many have been excited with the impending arrival of the next-generation Jeep Wrangler and the new 2019 Jeep Grand Wagoneer, which is slated to be the brand’s new range-topping model....
by - October 21, 2016
Chevrolet has taken the wraps off its new Chevrolet Colorado ZH2 at the fall meeting of the Association of the United States Army (AUSA). Tagged as the most extreme fuel-cell-powered...
by - October 21, 2016
Honda has unveiled the fifth generation of its hot-selling SUV – the 2017 Honda CR-V. The latest iteration of the CR-V should help it maintain its benchmark status in the...
by - October 21, 2016
Many are already expecting BMW to launch an ultra luxurious SUV that will serve at its new flagship by late 2018. Larger than the X5 and X6, the new X7...
by - October 21, 2016