HomeStock MarketUAW employees vote against Mack Trucks agreement, plan to go on strike,...

UAW employees vote against Mack Trucks agreement, plan to go on strike, reported by Reuters.

UAW Workers Reject Mack Trucks Contract, Prepare to Strike

Workers at Mack Trucks Reject Contract, Opt for Strike

Union workers at Volvo Group-owned Mack Trucks have overwhelmingly rejected a proposed five-year contract deal and are set to go on strike, according to the United Auto Workers (UAW). This latest labor agreement rejection follows a series of similar outcomes across various industries this year. The UAW announced that approximately 73% of workers voted against the deal, affecting 4,000 workers in Pennsylvania, Florida, and Maryland. The strike is scheduled to commence on Monday at 7 a.m. (1100 GMT).

Unions Continue to Assert Power Through Strikes

Labor actions have been employed by unions in the auto, shipping, and healthcare sectors to maintain leverage during contract negotiations. Recent polls have indicated widespread support from the American public for the demands put forward by these unions. Over the past year, workers in the freight rail and shipping industries have rejected tentative agreements before eventually reaching new deals.

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UAW Targets Detroit Three Automakers

The UAW has been conducting targeted strikes against facilities belonging to the Detroit Three automakers since September 15. Presently, around 25,000 of the 146,000 UAW employees at General Motors, Ford, and Chrysler parent Stellantis are on strike. The proposed contract at Mack Trucks included a 19% pay increase, a $3,500 ratification bonus, improved retirement benefits, additional vacation time for certain employees, and a reduced time frame to reach top pay.

UAW and Mack Trucks React to the Strike Decision

In response to the strike decision, UAW President Shawn Fain expressed support for the workers, stating that he is inspired to witness their determination to secure a better deal. Mack President Stephen Roy, however, expressed surprise and disappointment, deeming the strike unnecessary. Roy highlighted that Mack is the only heavy-truck manufacturing group that assembles all of its trucks and engines within the United States. The UAW has stated its intention to contact Mack Trucks to schedule future bargaining sessions, while Mack remains confident that an agreement can be reached.

Recent Strikes and Negotiations in Other Industries

The UAW has decided not to expand the ongoing Detroit Three strikes, citing progress in talks. Ford has increased its proposed wage hike to 23% through early 2028, which, combined with cost-of-living adjustments, could result in pay increases of around 30% for workers. In other sectors, negotiations between health care workers and Kaiser Permanente, one of the largest nonprofit hospital networks and managed-care organizations in the US, have led to a three-day walkout.

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