UAW Reaches Tentative Agreement with Rolls-Royce, Gains Wage Increases

UAW Achieves Tentative Agreement with Rolls-Royce in Indianapolis

Indianapolis — A significant tentative agreement has been reached between the United Auto Workers (UAW) and Rolls-Royce, coinciding with the contract's expiration deadline on Wednesday, February 26. The agreement follows a rally and credible strike threat aimed at Rolls-Royce, the world's second-largest aircraft engine manufacturer.

The five-year contract impacts over 800 Indianapolis-based workers, bringing substantial economic advancements. Key elements include the removal of wage tiers, substantial wage raises, a transparent profit-sharing model, enhanced retirement benefits, and the integration of Cost-of-Living Adjustments (COLA) into the base pay.

In a statement to union members, UAW President Shawn Fain highlighted critical aspects of the agreement and acknowledged the commitment of the Rolls-Royce workers and bargaining team.

To watch President Fain's complete remarks, visit the UAW's Facebook page, and see Fain’s official speech below. The media may use these resources.
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UAW President Shawn Fain Prepared Remarks on Rolls-Royce Negotiations, February 26, 2025

For several months, Local 933's bargaining team has diligently worked to secure a contract that duly reflects the immense profits generated by our members for the company.

Our members at Rolls-Royce perform crucial work.

The company ranks as the second largest manufacturer of aircraft engines globally, with the Indianapolis facility producing engines for military use.

Our members take pride in their roles, and it's their dedication that fuels Rolls-Royce's profitability.

I am honored to announce alongside this bargaining team and Region 2B Director Dave Green, a tentative agreement that respects the efforts and sacrifices of our members.

Let's review the agreement's details. First, wage tiers are being eliminated at Rolls-Royce!

For those in Tier 4, there will be an $18.79 raise over the course of this contract, marking a 68% increase.

This is a transformative wage hike.

Tier 2 will promptly align with the legacy rate.

By the contract's final year, all production workers at Rolls-Royce will earn $46.37 per hour, excluding COLA.

Similarly, skilled trades will surpass $50 an hour by the contract's conclusion.

Attention now turns to COLA.

Rolls-Royce has a significant COLA, though not uniformly distributed, and it’s not integrated into base salaries.

This means our wages don't always match inflation. Raises haven't included COLA until now.

With this agreement, everyone will receive COLA, maintaining the robust formula we previously used.

Furthermore, COLA will be integrated into base pay.

General wage increases will also be robust, exceeding those in prior contracts.

We emphasized consistent yearly wage increases.

The UAW now refuses lump-sum bonuses as substitutes for wage increments that enhance lifetime earnings.

Elevating the working class's standard of living is essential, and we will not settle for less.

Furthermore, we have reinstated genuine profit-sharing at Rolls-Royce.

For years, the company offered a so-called profit-sharing bonus with a non-transparent, adjustable formula.

The new profit-sharing system is based on publicly available company profit margins, akin to the Big Three's approach.

This ensures transparency, providing Rolls-Royce members with potentially thousands more in earnings.

Efforts were also made to expand vacation time for our members.

Some mid-career workers will gain two extra vacation days, while those with four years or less will enjoy an entire additional week.

Retirement was a complex negotiation issue.

For legacy workers, we've raised the monthly Basic benefit rate from $60.94 to $65 per credited service year.

This increase surpasses gains from the last two contracts combined and is the largest in two decades.

For those with a 401(k), the company match has risen from 5% to 7%, in addition to a 3% company contribution.

There are numerous other contract highlights, but these are the notable achievements we wish to share tonight.

While the bargaining team is proud of the tentative agreement, the final decision rests with our members alone.

The membership is always the highest authority in the UAW.

In the coming days, Local 933 will share details of the agreement and conduct meetings to address members' questions prior to voting.

I conclude by recognizing the bargainers' dedication.

They have demanded a historic agreement, and I'm proud to announce their success.

Thanks to the Stand Up Strike at the Big Three, UAW members have secured historic agreements at Allison Transmission, Daimler Trucks, Cornell University, and now Rolls-Royce.

These victories are possible because of organized and united members.

Companies feel the pressure when they see a committed membership backing the bargaining team.

This unity was evident when hundreds rallied to support the negotiations, ready to strike if necessary.

I am immensely proud of the UAW community and delighted to celebrate this achievement in Indiana, home of Local 933.