Market Overview

UAW Ending 12-Day Strike Against Mack Trucks

UAW Ending 12-Day Strike Against Mack Trucks

The United Auto Workers is ending its strike against Mack Trucks after 12 days. The first walkout in 35 years idled six facilities in three states and forced the layoff of 3,000 workers at Volvo Trucks only North American assembly plant.

Mack Trucks announced the tentative agreement on Thursday evening, October 24. Terms of the four-year deal, which is a year longer than the last contract signed in 2016, were not disclosed. The 3,500 workers represented by UAW locals in Pennsylvania, Maryland and Florida will vote whether or not to ratify the agreement.

The UAW said it would suspend picketing on Friday morning, October 25. The strike began October 14 after a two-week extension of the contract that expired October 1.  

"The company will bring its UAW-represented employees back to work as soon as possible, and expects to have its industrial system ramped up to full production in several days," Mack said in a news release.

It was unclear how soon workers laid off Monday at Volvo's New River Valley plant in Dublin, Virginia, would be called back. Volvo halted production because it ran short of engines and transmissions built in a powertrain plant its shares with Mack in Hagerstown, Maryland.

Mack and Volvo are both part of the Volvo Group (OTC: VLVLY). In addition to engines and transmissions, both companies share parts distribution centers in Baltimore, Maryland, and Jacksonville, Florida.

"We are in the process of working with the company to bring people back to work as soon as possible," according to a strike update posted on the UAW Local 677 website. 

"We anticipate a staggered ramp up beginning Monday, October 28 with essential employees to ensure a safe start-up," the notice said. "We expect to have our full industrial system up and running by mid to late next week."

Neither Mack nor Volvo spokesmen immediately responded to questions about how much production was lost during the strike or whether the downtime would alter plans for two down weeks later this quarter to adjust production to match new truck orders that have fallen industry-wide for 10 consecutive months.

Separately, the UAW and General Motors reached a tentative agreement on a four-year contract that could end the longest strike against the automaker since 1970. Picketing continued at GM facilities during ratification voting, which ends October 25.

Image by Albert Dezetter from Pixabay


Related Articles (VLVLY)

View Comments and Join the Discussion!

Posted-In: Freight Freightwaves Mack Trucks trucking UAWNews General