Labor deal points to growing union strength in the South

Daimler Truck and the United Auto Workers reached an 11th-hour agreement late last week that averted a strike at locations including Thomas Built Buses in High Point, a move that allows the union a rare chance to flex its muscle in the South.

The UAW says the tentative deal covering more than 7,000 workers includes a pay increase of 25% and profit-sharing for the first time.

Daimler officials say the affected employees must still ratify the agreement, which the company hopes will happen soon for the mutual benefit of all parties involved.

The deal is the latest in a string of successes for the labor union, including renegotiated contracts following a strike with the "Big Three" automakers last year, and a successful union drive for Volkswagen workers in Chattanooga, Tenn.

Erik Gellman is a labor historian at The University of North Carolina at Chapel Hill. He says the Daimler agreement is an encouraging sign for organized labor in North Carolina. 

“They're inspired by other campaigns by the UAW around the country, including some in the South," he says. "They're becoming more aggressive as a result. And Daimler came to the table.”

North Carolina has one of the lowest rates of union membership in the country. Gellman says high-profile accomplishments by groups like the UAW could lead more workers to consider organizing, even beyond the manufacturing sector.