UAW workers, Volvo-backed Mack Trucks reach deal to avoid strike

About 4,000 workers, represented by the United Auto Workers (UAW), have reached a tentative agreement with Mack Trucks, which is owned by the Volvo Group.

The agreement was made just before midnight Eastern Standard Time on Sunday and awaits ratification by the UAW. Once approved, the deal promises increased wages and the continuation of first-class benefits for Mack employees and their families, according to Mack President Stephen Roy. Last month, about 98 per cent of the truck company's workers had authorised a strike, as reported by the UAW.

Currently, the UAW is in the third week of an ongoing strike against General Motors, Ford, and Stellantis, the parent company of Chrysler. A strike by Mack workers could have put additional strain on the UAW's limited strike fund.

Workers across various industries in the United States have been advocating for improved wages and benefits from large companies due to factors such as high inflation and low unemployment. Recent polling data from Reuters indicates that the US labour movement's efforts enjoy broad national support, with a majority of Americans expressing agreement with the demands of auto workers and Hollywood actors for better compensation.

Mack Trucks, established in 1900, is among North America's leading manufacturers of medium-duty and heavy-duty trucks, as well as engines and transmissions. The company operates in about 30 countries, and its trucks are sold worldwide. While tentative agreements had been reached earlier, discussions on certain aspects were still ongoing. Although there are differences in economic terms at this stage in the negotiations, Mack remains optimistic about making progress in the coming days. Volvo Group acquired Mack in 2000.

(With Reuters Inputs)