In a significant labor movement, nearly 4,000 members of the United Auto Workers (UAW) union have gone on strike at Mack Trucks, a heavy truck manufacturer. This decision comes after the workers voted down a tentative agreement that had been reached just a week prior.
The union reported that a significant 73% of its workers had voted against the proposed deal. UAW President Shawn Fain, voicing his support for the workers, stated, "I'm inspired to see UAW members at Mack holding out for a better deal, and ready to stand up and walk off the job to win it." He made this announcement on X, the social media platform formerly known as Twitter.
The rejected contract had several notable features. It included an immediate 10% pay raise, 9 percentage points of additional pay increases over the five-year duration of the contract, a $3,500 signing bonus, improved vacation and holiday benefits, and no increase in insurance premiums to be paid by the members.
Stephen Roy, the president of Mack Trucks, expressed his surprise and disappointment at the union's decision to strike. He highlighted that the UAW had previously described their tentative agreement as "a record contract for the heavy truck industry." Emphasizing Mack Trucks' commitment to domestic production, Roy mentioned that the company assembles all of its trucks and engines for the North American market at US plants, even as it competes against products manufactured in lower-cost countries. He expressed the company's eagerness to return to negotiations promptly and emphasized their commitment to the collective bargaining process.
This labor unrest at Mack Trucks is not an isolated incident. The UAW is currently engaged in strikes against the three biggest car manufacturers. Mack Trucks, a major US producer 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, which operates separately from the Volvo car brand owned by China's Geely.
The UAW's bargaining objectives at Mack reflect many of its demands in negotiations with the Big Three automakers - General Motors, Ford, and Stellantis. These demands encompass improved wages, health care, and pension benefits. This is the first instance in the union's history where it has simultaneously struck all three unionized automakers.
President Joe Biden, in a show of solidarity, became the first sitting president to visit a picket line. He did so last month at a GM facility, expressing his support for the strikers. However, the rejection of the tentative agreement at Mack Trucks underscores the challenges the union might face in securing an agreement with GM, Ford, and Stellantis that garners the approval of the rank-and-file membership.
The proposed agreement between Mack and the UAW was reached just moments before the expiration of the union's contract on October 1. In recent times, it has become increasingly common for rank-and-file union members to reject tentative labor agreements brokered by their union leadership.
Strikes have surged in prevalence this year. Labor unions, capitalizing on a robust US labor market, are pushing for better pay, benefits, and working conditions for their members. Data from the Cornell University School of Industrial and Labor Relations indicates that the number of strikes involving 100 or more strikers, lasting a week or longer, has risen to 56 in the first nine months of this year. This figure marks a 65% increase from the same period in the previous year.
