Pensions – UAW Contract

We recently discussed defined benefit pensions. They were part of the demands in the recent UAW strike. I have not seen any details on those contracts but now we have this one from Allison Transmissions. Not sure if they went through the auto industry bankruptcy but pattern bargaining is common. Most contracts are probably similar.

News item reports–

“a starting wage of $20 an hour along with retroactive pay hikes, 6-8% gains for 401k contributions and two bonuses amounting to $7,000"

“ an end to wage tiers and an increase in legacy pensions to $59.45 by the end of the [four year] contract.”

Looks like they did not get defined benefit pensions. Still have 401k contributions. And legacy pensions probably means an increase for union members now on pension.