The United Auto Workers (UAW) has successfully reached a labor agreement with Volvo Group’s Mack Trucks, eliminating the possibility of a strike. This news comes as strikes at Ford, General Motors (GM), and Stellantis continue into their third week.
Nearly 4,000 workers at Mack Trucks in Pennsylvania, Maryland, and Florida have struck a tentative deal just before the Sunday midnight deadline. While the specifics of the agreement have not been disclosed, it is a positive sign that an agreement can be achieved promptly if necessary. Previously, the UAW and Mack Trucks were described as being “far apart on the economics,” highlighting the importance of this timely resolution.
One of the benefits of this agreement is that it ensures more funds remain available for the ongoing strikes at Ford, GM, and Stellantis. As of September 15, the UAW had around $825 million in its strike fund and had planned to provide striking workers with $500 per week. By strategically targeting specific plants, the union has been able to extend the fund’s longevity.
In further developments, the UAW has expanded its strike against GM and Ford by incorporating one assembly plant from each company. However, Stellantis has been spared this time. This change suggests that the union is becoming increasingly dissatisfied with the progress of negotiations with Ford.
Despite these ongoing labor disputes, Ford, GM, and Stellantis stocks have all shown minor gains ahead of Monday’s trading opening.