In a last-minute move that narrowly prevented a significant strike, Mack Trucks and the United Auto Workers (UAW) union reached a tentative contract agreement late on Sunday. This development comes as a relief to approximately 3,900 employees at the company who were on the brink of walking out.
The UAW took to social media platform Twitter, announcing the tentative agreement just minutes before the union's contract was set to expire at 11:59 pm ET. The next step involves the rank-and-file members reviewing and ratifying the agreement. Once ratified, the risk of a strike will be officially put to rest.
This news from the heavy-duty truck manufacturer arrives amidst ongoing strikes by the UAW against three major car manufacturers. The union's objectives in the negotiations with Mack Trucks echoed many of its demands in discussions with the Big Three automakers. These demands encompassed enhanced wages, health care, and pension benefits. However, the specifics of the agreement have not been disclosed by either the union or Mack Trucks.
Stephen Roy, Mack's President, commented on the tentative agreement, stating that it would provide "significantly increased wages" and maintain "first-class benefits" for Mack employees and their families. He further added that the agreement would enable the company to remain competitive in the market while continuing to invest in its people, plants, and products.
The tentative agreement underscores the UAW's commitment to achieving its ambitious bargaining goals. Had the union proceeded with the strike, it would have further depleted the union's strike fund, which was already at $825 million due to the work stoppage at the other three automakers.
Currently, over 25,000 UAW members are on strike across the three car companies. The union began its strike actions on September 15, and the number of striking members has since grown. The ongoing strikes are costing the union's strike fund nearly $14 million weekly. Additionally, other UAW members, including over 1,000 members striking at Blue Cross Blue Shield of Michigan, are receiving the same strike benefits. A potential strike at Mack Trucks would have added an additional $1.8 million in weekly benefits to this expenditure.
The UAW represents workers at five Mack Trucks facilities located in Pennsylvania, Maryland, and Florida. The union last initiated a strike against Mack Trucks in October of 2019, shortly after a six-week-long strike at GM.
For the first time in its history, the UAW is simultaneously striking against General Motors, Ford, and Stellantis. These walkouts began on September 15 and have since expanded, encompassing over 25,000 union members across the three corporations.
Mack Trucks, a leading US manufacturer of heavy-duty and medium-duty trucks, reported deliveries of 27,000 in 2022 and 16,000 for the first half of 2023. The company is a subsidiary of Sweden's Volvo Group, distinct from the Volvo car brand, which is under the ownership of China's Geely.
