UAW members ratify labor deal with Mack Trucks

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[November 16, 2023]  (Reuters) -The United Auto Workers (UAW) union on Wednesday said about 3,900 members representing Volvo Group-owned Mack Trucks ratified a new five-year contract in the U.S., ending a 39-day long strike following the rejection of an earlier deal.  

The logo of Mack Trucks is seen on a truck in a yard in Mejicanos, El Salvador, August 16, 2018. REUTERS/Jose Cabezas

The UAW and Mack Trucks had reached a tentative deal in October that included a 19% pay raise, but union workers overwhelmingly rejected it and went on a strike.

The deal had also included a $3,500 ratification bonus, improved retirement benefits and a reduction in the time needed to get to top pay, but some Mack Workers complained the raise was too small to keep up with inflation.

"After 39 days on strike, UAW members at Mack Trucks have voted by 93% to ratify their new contract with significant local improvements," the union said in a post on messaging platform X, earlier known as Twitter.

Mack Trucks said the new contract guaranteed "significant wage growth," and covered its employees at facilities in Pennsylvania, Maryland and Florida.

However, the UAW and Mack Trucks did not reveal details of the new contract and did not reply to requests for comment.

The deal comes as the UAW is the midst of labor ratification votes at Detroit's Big Three automakers, where workers went on strike for more than six weeks seeking better wages, working conditions and cost-of-living adjustments.

General Motors' tentative labor deal with the union closed in on ratification as the votes were counted on Wednesday. Voting at Ford and Stellantis is still under way, and workers at both companies were favoring ratification by comfortable margins.

Mack Trucks, which was bought by Volvo in 2000, is one of North America's largest makers of medium-duty and heavy-duty trucks.

(Reporting by Maria Ponnezhath, Shubham Kalia and Mrinmay Dey in Bengaluru; Editing by Varun H K)

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