Members of the United Auto Workers (UAW) at Mack Trucks walked off the job on Oct. 9 after overwhelmingly rejecting a new contract deal, bringing the total number of striking UAW members to more than 30,000 across 22 states.
About a week ago, Mack Trucks reached a tentative deal with the UAW that included a 20 percent general wage boost over the duration of a five-year contract.
“I’m inspired to see UAW members at Mack holding out for a better deal, and ready to stand up and walk off the job to win it,” UAW President Shawn Fain said in a statement late on Oct. 8.
Deal Terms Rejected
The preliminary deal included a 10 percent raise in the first year for all staff, with a cumulative 20 percent increase in general wages spread over five years. It also included a freeze on health insurance premium hikes throughout the five-year contract period.
The Mack proposal further entailed a $3,500 ratification bonus, enhanced retirement benefits, extra vacation days for some employees, and a reduction in the time needed to reach the maximum pay level.
But the terms were unsatisfactory to UAW leadership, which issued a strike notice to Mack Trucks, citing “many topics [that] remain at issue, including wage increases, cost of living allowances (COLA), job security, wage progression, skilled trades, shift premium, holiday schedules, work schedules, health and safety, seniority, pension, 401(k), healthcare and prescription drug coverage, and overtime.”
Mack Trucks President Stephen Roy said in a statement the Volvo Group-owned company was “surprised and disappointed” that the UAW workers has chosen to walk off the job, calling the move “unnecessary.”
“We clearly demonstrated our commitment to good faith bargaining by arriving at a tentative agreement that was endorsed by both the International UAW and the UAW Mack Truck Council,” Mr. Roy said.
Mr. Roy added that the UAW had earlier called the tentative deal a “record contract for the Heavy Truck industry.”
Mack Trucks, which was bought by Volvo in 2000, is one of North America’s largest makers of medium- and heavy-duty trucks.
Mr. Roy said Mack is part of “the only heavy-truck manufacturing group that assembles all of its trucks and engines” in the United States.
He added that the company wants to return to negotiations as soon as possible.
Unions on the March
This year, unions have used strikes and other actions to unsettle employers in the auto, shipping, and health care industries as they push for major boosts in wages and other compensation.In the past 12 months, freight rail workers and employees at shipping giant FedEx have rejected tentative agreements reached between union management and companies before eventually reaching deals.
Last week, health care workers at Kaiser Permanente walked out for three days as their negotiations drag on with one of the largest U.S. nonprofit hospital network and managed-care organizations.
The UAW has strikes underway at Detroit’s Big Three automakers—General Motors, Ford, and Chrysler parent Stellantis.
On Oct. 6, UAW leadership said it wouldn’t be expanding its targeted strike actions against the three automakers, citing “major progress” in talks.
This includes GM’s agreeing to include electric vehicle battery production in the UAW’s national master agreement with the company.
“GM’s commitment is a historic step forward, guaranteeing that the transition to electric vehicles at GM will be a just transition that brings good union jobs to communities across America,” the UAW said in a statement.
Ford has also increased its wage increase offer to 23 percent over a five-year contract.
“That’s two and a half times higher than they started,” Mr. Fain said in a statement. “It’s not where we need it to be, but it’s a hell of a lot further along.”
“Both GM and Stellantis are behind Ford, at 20 percent. We think they can catch up and then some,” he added.
“I want to be clear on one thing: Our goal throughout this process has always been to win a record contract,” he said.
Mr. Fain has outlined an ambitious set of goals, including roughly 40 percent pay hikes, ending the tiered wage system that pays new hires less than veterans, and restoring defined-benefit pension plans that the automakers ended years ago for new employees.
The three automakers told The Epoch Times in emailed statements that they want to reach deals that balance the concerns of employees and the company’s respective visions for the future, which includes an industry-wide shift to electric models that have fewer parts and require less labor.
