The United Auto Workers reached a labor agreement with
Volvo Group’s
Mack Trucks late Sunday, avoiding a potential strike.
The union said that nearly 4,000 of the truck maker’s workers in Pennsylvania, Maryland and Florida, struck a tentative deal just before the deadline of midnight Eastern Time Sunday, in a post on X, the app formerly known as Twitter.
The deal could be seen as both good and bad news for
Ford
(ticker: F),
General Motors
(
GM
), and
Stellantis
(STLA) as the strikes at the three Detroit auto makers enter a third full week.
While the details of the deal are yet to be released, it does show that it’s possible to reach an agreement—and quickly—if needs be. The union said Thursday that it and Mack Trucks were still “far apart on the economics,” and yet an agreement was reached just days later.
On the other hand, another UAW walkout would’ve diverted funds away from the union’s strike fund. The last-minute deal, therefore, ensures more funds are available for the Ford, GM, and
Stellantis
strikes.
When the walkouts began Sept.15, the union had an approximately $825 million strike fund, and planned to pay striking workers about $500 a week. The targeted approach taken by the union so far means the fund could last longer than it otherwise would.
The UAW expanded its strike against GM and Ford Friday, targeting one assembly plant at each company. Chrysler parent
Stellantis
was spared this time, but Ford, which avoided the previous week’s escalation, was included. That suggests the union is no longer satisfied with how negotiations are progressing with Ford.
Ford, GM, and Stellantis all edged higher ahead of the open of trading Monday.
Write to Callum Keown at [email protected]
Read the full article here
