Oct 2 (Portal) – About 4,000 workers represented by the United Auto Workers (UAW) reached an agreement with Mack Trucks, a subsidiary of the Volvo Group, shortly before midnight Eastern Standard Time (0400 GMT) on Sunday. achieved, the union and the company said.
The tentative agreement still needs to be ratified by the UAW.
“The terms of this tentative agreement would mean significantly higher wages and continued world-class benefits for Mack employees and their families,” Mack President Stephen Roy said in a statement.
The union announced the deal on the social media platform X, formerly known as Twitter. According to the UAW, about 98% of the trucking company’s workers approved a strike last month.
The UAW is currently in the third week of an ongoing strike against automakers Detroit 3, General Motors (GM.N), Ford and Chrysler parent company Stellantis (STLAM.MI).
If the Mack workers had gone on strike, it could have strained the UAW’s limited strike fund.
Workers in every industry, from airlines to shipping and from retail to entertainment, have pushed for better wages and benefits from major U.S. companies in recent months amid high inflation and low unemployment.
The U.S. labor movement’s efforts have broad support across the country. A recent Portal poll found that a majority of Americans agree with the demands of auto workers and Hollywood actors for better wages.
Founded in 1900, Mack is one of the largest manufacturers of medium and heavy-duty trucks, engines and transmissions in North America, according to its website. Its trucks are sold in almost 30 countries.
The company said Thursday that its negotiating teams had reached tentative agreements, but certain discussions were still ongoing.
“While it is true that the parties are currently far apart on economic issues, that is not unusual at this point in the negotiations and we expect progress in the coming days,” Mack said at the time.
Volvo (VOLVb.ST) bought Mack in 2000.
Reporting by Jahnavi Nidumolu in Bengaluru; Edited by Krishna Chandra Eluri and Savio D’Souza
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