Merced, CA, April 10, 2025 — Transportation Communications Union/IAM has successfully ratified its first-ever collective bargaining agreement with Transdev, Inc., marking a historic milestone for the union and the dedicated workforce in Merced, California. This is a landmark first contract reached by TCU/IAM, whose Organizing Department was established in 2022.
This contract, covering bus drivers, mechanics, utility workers, and dispatchers, delivers significant economic gains and workplace protections. A $3.00 per hour wage increase retroactive to January 1, 2024, is followed by annual general wage increases of 4.25% on January 1 of 2025, 2026, 2027, and 2028, amounting to 33.7% in GWIs over the life of the Agreement.
The contract secures no increase in cost or changes to healthcare. Other key highlights include the establishment of multiple work rules designed to enhance training pay, safety, scheduling, and job stability. Sound grievance and arbitration procedures were established, as well as a clear process for discipline and appeal. The agreement ensures uniforms are provided yearly to all classifications.
The Organizing drive began in October 2023. Following a resounding vote for a union, TCU was certified as the exclusive bargaining party in May of 2024. Negotiations began in June 2024. On April 9, 2025, members unanimously voted to accept the Carrier’s final offer, ratifying the contract.
“This contract is a powerful example of what happens when workers come together and demand more,” said TCU Organizing Director Sal Rodriguez. “Unionization brings voice, dignity, and strength to the workplace—and this win in Merced proves that when we organize, we win.”
National Vice President and Lead negotiator Matt Hollis, who worked closely with the bargaining committee and local stewards, emphasized the collaborative effort that brought the deal across the finish line: “This was about standing firm, listening to our members, and refusing to settle for less than what these workers deserve. This could not have been achieved without the diligent efforts of the local bargaining committee. I’m proud of our team and the trust the membership placed in us.”
TCU National President Artie Maratea praised the historic agreement, saying, “This is a great day for our union. Our members in Merced stood strong, and this first contract is a reflection of their resilience, unity, and vision for a better future.”
The Transdev agreement sets the tone for future organizing and bargaining efforts across the country, reinforcing TCU’s growing footprint and commitment to empowering workers.