UAW Reaches Tentative Agreement with Rolls-Royce

Indianapolis — The UAW has reached a groundbreaking tentative agreement with Rolls-Royce ahead of the contract’s expiration at midnight on Wednesday, February 26. This agreement follows a major rally the day prior and the escalation of a credible strike threat against the world’s second-largest manufacturer of aircraft engines.

The five-year agreement, covering more than 800 workers in Indianapolis, delivers significant economic gains, including the elimination of wage tiers, double-digit wage increases, a true profit-sharing plan that the company cannot manipulate arbitrarily, improved retirement benefits, and a Cost-of-Living Adjustment (COLA) that will now be rolled into base pay for all workers.

In a direct address to membership, UAW President Shawn Fain outlined key parts of the deal and reflected on the tenacity of the Rolls-Royce membership and bargaining committee.

To view President Fain’s remarks in full, head to UAW’s Facebook page, and read Fain’s prepared remarks below. The media is invited to use these materials.
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UAW President Shawn Fain Prepared Remarks on Rolls-Royce Negotiations, February 26, 2025

For months, the Local 933 bargaining team has been hard at work, negotiating to win a contract for our members that truly represents the massive profits they make for this company.

Our members at Rolls-Royce do incredibly important work.

The company is the second largest manufacturer of aircraft engines in the world, and the facility here in Indianapolis produces aircraft engines for our nation’s military.

Our members are proud of the work they do, and it’s their blood, sweat, and tears that make Rolls-Royce’s billions in profits possible.

I’m proud to stand here today with this bargaining team and Region 2B Director Dave Green to announce to our membership that we have reached a tentative agreement that reflects the hard work and sacrifices made by our members.

So, let’s take a look at what’s in the TA. First: We are ending wage tiers at Rolls-Royce!

For the lowest tier — Tier 4 — you are going to see an $18.79 raise over the life of this agreement. That’s a raise of 68%.

That’s a life changing wage increase.

For Tier 2, they will immediately be brought to the legacy rate.

At the beginning of the final year of the contract, ALL PRODUCTION WORKERS at Rolls-Royce will be making a top wage of $46.37 an hour. And that does NOT include COLA.

Similarly, At the beginning of the final year of the contract, skilled trades will be making over $50 an hour.

Next, I want to talk about COLA.

Rolls-Royce has a big COLA. But not everyone gets it, and nobody gets it folded into their base pay.

This means that our wages don’t necessarily keep up with inflation over time. It also means that when workers get a raise, it doesn’t include the COLA.

With this agreement, EVERYONE gets COLA, with the same strong formula we’ve had previously.

And everyone will get COLA folded into their base pay.

We also are seeing healthy general wage increases, more than twice as high as the previous contract.

We told the company, we needed wage increases in EVERY year of the agreement.

At the new UAW, we will no longer accept lump sum bonuses in the place of wage increases which increase our lifetime earnings.

That’s how you raise the standard of living for the working class. That’s what we deserve and we aren’t going to accept anything less.

I’m also excited to announce that we won back true profit sharing at Rolls Royce.

For years, Rolls-Royce has been giving out a bonus that they called profit share, but that bonus was based on a formula that wasn’t transparent and that management could change on a whim.

Now we are back to a profit sharing formula based on the company’s publicly shared profit margins. That’s the same way we do it at the Big Three.

Our new profit sharing formula means the company can’t lie, they can’t hide, and it means that Rolls-Royce members are going to earn on average thousands of more dollars than they have in the past.

We worked hard to get more vacation for our members.

Some workers in the middle of their career are going to see an additional two days of vacation. Workers with four years or less are going to receive an ENTIRE additional week of vacation.

One of the biggest and thorniest issues in bargaining was retirement.

For legacy workers, we are excited to announce that we successfully increased the monthly Basic benefit rate from $60.94 to $65 per year of credited service.

That’s a bigger increase to the monthly Basic benefit rate than the last two contracts combined. It’s the biggest increase in twenty years.

For those with a 401(k), we raised the company match from 5% to 7% while keeping the additional 3% company contribution.

There is so much more that was won in this contract, but these are just a few of the highlights that we were excited to share with you tonight.

While the bargaining team behind me are extremely proud of this TA and all of the work that it took to win it, we know that, ultimately, this decision is up to our members and our members alone.

The membership is always the highest authority in the UAW.

In the coming days, Local 933 will be rolling out highlighters and sharing the TA’d language and holding roll-out meetings where members will be able to ask our bargaining team any questions they have before they vote on whether to ratify this agreement.

I want to close by saying this bargaining team has worked their assess off for the membership.

They stood up to the company and demanded a historic agreement and I’m proud to say that is exactly what they won.

Following the success of the Stand Up Strike at the Big Three, we have seen UAW members win massive gains in historic agreements at Allison Transmission, Daimler Trucks, Cornell University, and now here at Rolls-Royce.

And all of those victories were made possible by the membership. Winning strong agreements is only possible when our members are organized and united.

It only happens when the company looks over the shoulder of our bargaining team and sees an army of fired up and fed up members who are ready to do what it takes to win what they deserve.

That is exactly what happened here this week when hundreds of members showed up to rally in support of their bargaining team and show the company that they were ready to strike if needed.

I’m so proud of my UAW family and I’m incredibly honored to be back home again in Indiana, the home of Local 933 to celebrate this massive victory.