Union workers at Mack Trucks went on strike on Monday after rejecting a proposed five-year contract agreement reached with the company. This labor turmoil adds to the ongoing strike issues faced by all three major Detroit automakers, as 4,000 unionized workers joined picket lines at 7 a.m. The United Auto Workers (UAW) announced that the strike now involves over 30,000 UAW members across 22 states.
In a letter addressed to Volvo Trucks, the parent company of Mack, Union President Shawn Fain revealed that 73% of workers voted against the deal in the Sunday ballot. The UAW represents Mack workers in Pennsylvania, Maryland, and Florida, and the tentative agreement was reached on October 1 with UAW Locals 171, 677, 1247, 2301, and 2420 in UAW Region 8 and Region 9, covering various locations.
The initial agreement negotiated with Mack included a 19% pay raise over the life of the contract, with 10% at ratification. It also featured a $3,500 ratification bonus, no increase in weekly healthcare contributions, increased annual lump sum payments for retirees, and a $1,000 annual 401(k) lump sum to offset healthcare costs for retired employees without health insurance.
Fain emphasized in the letter that UAW members nationwide are demanding fair compensation and benefits. He stated that important issues such as work schedules, health and safety, pensions, healthcare, prescription drug coverage, and overtime still remain unresolved between the company and the union.
The high expectations set by Fain in previous negotiations with Detroit automakers may have contributed to the rejection of the contract. The UAW has asked for 36% raises over four years, whereas Ford has offered 23% and the other two companies are at 20%.
In a prepared statement, Fain expressed his support for the striking Mack Trucks workers, stating that their solidarity and organization will secure a fair contract. Mack Trucks President Stephen Roy, in response, expressed surprise and disappointment at the decision to strike, emphasizing the differences in their market, business, and competitive set as a heavy truck manufacturer. Roy highlighted that Mack is the only company in its group that assembles all vehicles and engines for North America in the U.S., competing against trucks produced in lower-cost countries.
Despite the strike, the company remains committed to collective bargaining and is confident that both parties can reach a mutually beneficial agreement that ensures competitive wages and benefits while safeguarding Mack’s future.
Previously, UAW strikes had targeted selected factories owned by General Motors, Ford, and Stellantis, which began on September 15. The strikes initially involved one assembly plant per company, later spreading to 38 GM and Stellantis parts warehouses, with additional assembly plants at Ford and GM added subsequently.
On Friday, the UAW decided not to expand the strikes for the time being, as GM agreed to include its electric vehicle battery factories in the UAW’s national contract, ensuring their unionization. The union also reported progress in negotiations with all three automakers.
Denial of responsibility! Vigour Times is an automatic aggregator of Global media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
