UAW Has Another Strike on Its Hands

Union workers at Mack Trucks went on strike Monday after voting down a tentative five-year contract agreement that negotiators had reached with the company. The United Auto Workers said 4,000 unionized workers walked out at 7am, reports the AP, adding to labor turmoil in the industry that has ensnared all three big Detroit automakers. Union President Shawn Fain said in a letter to Mack parent company Volvo Trucks that 73% of workers voted against the deal in results counted on Sunday. The UAW represents Mack workers in Pennsylvania, Maryland, and Florida. Union leaders had reached a tentative agreement on the deal on Oct. 1.

The deal included a 19% pay raise over the life of the contract with 10% upon ratification. There also was a $3,500 ratification bonus, no increase in weekly health care contributions, increased annual lump sum payments for retirees, and a $1,000 annual 401(k) lump sum to offset health care costs for employees who don't get health insurance after retirement. Fain said in his letter to Volvo Trucks' head of labor relations that employees working early Monday would exit the factories after performing tasks needed to prevent damage to company equipment. Fain wrote that UAW members and workers across the country are seeking their fair share in wages and benefits. "The union remains committed to exploring all options for reaching an agreement, but we clearly are not there yet."

The company and union are still apart on work schedules, health and safety, pensions, health care, prescription drug coverage, overtime, and other issues, he wrote. The contract may have been sunk by high expectations Fain has set in bargaining with Detroit's three automakers. In those talks, the UAW has asked for 36% raises over four years, while Ford has offered 23% and the other two firms are at 20%. Mack Trucks President Stephen Roy said in a statement Sunday night that the company is "surprised and disappointed" that the union chose to strike. The union, he wrote, called the tentative agreement a record for the heavy truck industry. "We trust that other stakeholders also appreciate that our market, business and competitive set are very different from those of the passenger car makers," the statement said.

(More United Auto Workers stories.)