United Auto Workers employees at Daimler Trucks North America’s facilities located in Cleveland, Mt. Holly and Gastonia, North Carolina, have ratified a new four-year collective bargaining agreement.

“DTNA and the UAW worked together to achieve a contract that rewards workers for several years of consistently increasing market share and quality production, while increasing the competitiveness of DTNA’s truck manufacturing plants based in North Carolina,” said DTNA in a statement

The contract includes a $7,000 ratification bonus and 3% wage increases the first and third years of the agreement, with 3% lump-sum bonuses in the second and fourth years. Other economic gains include an increased night shift premium and an attendance bonus program.

Faced with the increasing cost of providing health care benefits to retired workers, the UAW and DTNA worked together to establish a Voluntary Employee Benefit Association that will secure retiree benefits for the long term, according to the UAW. The contract, including the VEBA agreement for future retirees, becomes effective, upon Daimler Supervisory Board approval. Upon court approval, current retirees will also be included in the VEBA and DTNA will provide additional funding.

“The new four-year agreement between Daimler Trucks North America and the UAW serves the mutual benefit of our company, valued workers and retirees,” said Martin Daum, president and CEO, Daimler Trucks North America.  “The ongoing close collaboration with the UAW has resulted in a contract that will help assure Daimler Trucks North America’s continued manufacturing excellence and market leadership.”

Daimler Trucks is the parent to truck manufacturers Freightliner and Western Star, along with engine and component maker Detroit Diesel.