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IAM Local 701 members have overwhelmingly ratified a new five-year collective bargaining agreement with the Chicago Automobile Dealers Association and “me-too” dealers not in the Association, delivering substantial gains in wages, retirement security and benefits for IAM-represented automotive technicians across the Chicagoland area.
“These contract improvements will change the lives of the Technicians that work under this agreement in over 150 locations in and around the Chicagoland area, securing their health insurance for them and their families, giving them a respectable retirement for the hard work they perform, and allowing them and their families to opportunity to live the American dream,” said IAM Local 701 Directing Business Representative Mark Grasseschi.
Grasseschi emphasized that the gains secured in the contract would not have been possible without the solidarity shown by members during two previous strikes, one in 2017 and one in 2021.
“Those labor stoppages were not easy on members, their families, or their shops,” said Grasseschi. “But they sent a clear message: Local 701 members stand united and will fight for what they deserve. Every improvement in this contract is a direct result of that strength.”
A centerpiece of the agreement is a significant boost to pension contributions. The agreement includes an additional $3 per hour in pension funding—bringing the total to $8.58 per hour, or $343 per week—marking a 54% increase over the life of the agreement.
“With this ratification, IAM Local 701 members have once again demonstrated that unity and collective action remain the foundation for winning strong contracts and building a better future for working families,” said IAM Midwest Territory General Vice President Sam Cicinelli.
The Local also secured retroactive pension contributions dating back to August 2025. Eligible members will receive approximately $1,400 in additional pension funding, equating to an estimated $928 per month increase in retirement benefits over the next five years.
Importantly, all existing pension rules remain intact, including the “Rule of 85” and a full retirement age of 62.
On healthcare, the agreement ensures that all increases in welfare costs are fully covered by employers. Employer contributions will rise by $1.83 per hour (an 18% increase), while workers’ weekly healthcare co-share will remain frozen at just $10 per week for the duration of the contract.
Combined, pension and welfare contributions will increase employer costs by more than $10,000 per employee annually, representing a 32.2% increase over the life of the deal.
The contract also delivers major wage increases across all job classifications and eliminates stagnant starting rates for skilled and lube rack technicians.
Beyond wages and retirement, the new agreement includes several quality-of-life improvements:
