UAW Reaches Historic Agreement at BMW’s Regional Distribution Center in the Lehigh Valley

Palmer Township, PA — UAW members who work at the BMW Regional Distribution Center in Palmer Township, PA, have won a historic tentative agreement that, if ratified, includes record wage increases and ends the two-tier wage system. The agreement also introduces major improvements to policies on time off, uniforms, overtime exemptions, and attendance. The deal comes after workers at the BMW facility built a credible strike threat that forced the company to offer a contract that properly reflects workers’ immense value.

“We knew that if we stuck together and refused to be divided, we could win,” said Zach Haas, chief steward and bargaining unit chair. “This agreement is going to mean a better life for me and my coworkers.”

BMW has raked in a massive $50 billion in profits since 2021 and paid out $7.2 billion to shareholders last year alone. Company CEO Oliver Zipse was generously rewarded with a nearly $10 million payday in 2023. Yet, workers at the facility have seen their standard of living continue to decline as wages and benefits have stagnated for years.

For weeks, workers ramped up their campaign to win a record contract before the current agreement's June 30 expiration. They organized red shirt days and held multiple rallies in front of the BMW facility, with community leaders often joining them to offer their support.  

On June 8, members voted by 99% to authorize a strike, sending a clear message to BMW that workers were more than willing to walk if the company continued to lowball negotiations.

“I couldn’t be prouder of these workers for demanding better working conditions and a better life for themselves,” said UAW Region 9 Director Daniel Vicente. “They stood together and showed BMW that they were willing to do what needed to be done to win what they know they deserve. They’re a testament to the power of solidarity.”

Workers at the RDC will attend informational meetings and vote on the agreement in the coming days.The record tentative agreement at the BMW-RDC follows a string of contract victories for the UAW, including major wins at the Big Three automakers, Daimler Truck, Allison Transmission, and Aramark, among others.

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