Yahoo Finance Volvo's (VLVLY) Subsidiary Mack Trucks Workers Join UAW Strike
The United Auto Workers (UAW) declared a strike against Volvo’s VLVLY subsidiary, Mack Trucks, after rejecting the automaker’s five-year contract.
Per a letter sent by UAW to Volvo’s director of employee relations, nearly 73% of the 4,000 workers downvoted the tentative agreement.
Per UAW and Mack Trucks, the contract includes a 10% increase in general wage, a 19% increase to general wages over 5 years and a guarantee to keep healthcare premiums in check during the duration of the contract.
Mack’s workers criticized the raise in an online forum and said that it is too small to keep up with inflation.
The union would contact Mack Trucks to resume bargaining. VLVLY carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
UAW has been on strike against Detroit Three since Sep 15, 2023. Nearly 25,000 UAW members at General Motors GM, Ford F and Stellantis STLA are part of the strike.
Amid progress in talks with GM, the union said it won’t expand the strike against Detroit Three. The legacy automaker agreed to include battery cell workers in its national agreement.
Shawn Fain, president of UAW, threatened to shut down GM’s highly profitable Arlington Assembly plant, but the last-minute proposal by the automaker changed the union’s mind.
Fain called the proposal a win, but GM declined to comment on it. General Motors said that it aims to reach an agreement that rewards its employees without compromising on the company’s future.
The proposal by GM is likely to put pressure on its arch-rival Ford and Stellantis to do the same.
The union alleged that the automakers have formed joint ventures with battery manufacturers to cast the union out of the new factories. The joint venture-owned battery plants are not covered by the automakers’ agreements with the union. However, the union wants to protect its members through agreements as the industry transitions to electric vehicles.
Amid the UAW strike, Detroit 3 automakers are laying off thousands of workers. Ford recently laid off 70 workers, bringing its total layoff figures to 1,865 since the commencement of the strike.
Stellantis has laid off a total of 640 workers, including 520 workers at Trenton, MI, engine plant and 50 workers at an Indiana casting plant, during the same period. Stellantis cited storage constraint as the main reason behind the layoffs.
A total of 2,300 GM workers are impacted by the layoff. The automaker said that employees are not expected to return until the strike is resolved.
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