Home » US Employment News » UAW strikes at Volvo’s Mack Trucks unit over contract rejection
UAW strikes at Volvo’s Mack Trucks unit over contract rejection
https://www.whatjobs.com/news/usa/us-employment-news/uaw-strikes-at-volvos-mack-trucks-unit-over-contract-rejection
By Nithya Bose in US Employment News, posted October 10, 2023
Approximately 4,000 members of the United Auto Workers have started a strike at Volvo Group's Mack Trucks unit.
It follows the rejection of a proposed five-year contract by a staggering 73 percent majority of UAW-represented workers at Mack plants in Pennsylvania, Maryland, and Florida.
The tentative contract, negotiated between the UAW's bargaining team and the company, included substantial financial incentives.
Read More: UAW Holds Off Strike As Talks Progress With Detroit Automakers
These incentives featured a 19 percent raise over the contract's duration, an initial 10 percent wage increase in the first year, and a $3,500 lump-sum bonus for contract ratification.
UAW President Shawn Fain said: “I’m inspired to see UAW members at Mack Trucks holding out for a better deal, and ready to stand up and walk off the job to win it.”
Mack Trucks' President, Stephen Roy said the firm was surprised and disappointed over the strike.
He said: “We clearly demonstrated our commitment to good-faith bargaining by arriving at a tentative agreement.”
Mack Trucks produces medium and heavy-duty trucks primarily for trash collection and construction.
Read More: Ford And GM Cut 500 Factory Workers Due To UAW Strike
The Sweden-based Volvo Group also operates in the US, manufacturing Volvo-branded commercial trucks and construction equipment.
The previous four-year contract between the UAW and Mack Trucks expired on October 1.
The union wants higher pay raises, improved cost-of-living allowances, enhanced job security, and more generous pension benefits.
Nearly 25,000 UAW members working at Detroit's major automakers, General Motors, Ford, and Stellantis, are on strike as they negotiate new four-year labor agreements.
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These strikes began mid-September and have since expanded to five assembly plants and numerous parts distribution centers.
Key points of contention in the Detroit negotiations include wage increases and cost-of-living adjustments.
While the companies have proposed a 20 percent raise over four years, the UAW has advocated for a 40 percent increase.
Additionally, retirement benefits and job security remain high-priority issues for the union leadership.
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The UAW decided to withhold further plant walkouts at the Detroit automakers, citing progress in the ongoing discussions.
Notably, General Motors agreed to incorporate battery-production work into the national bargaining agreement with the UAW.
The move would uphold higher wage levels at emerging battery factories across the South and Midwest.
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